How to have adequate control on your real estate investment relationship with a developer

How to have adequate control on your real estate investment relationship with a developer

In recent times, real estate investment means that you will be in a business relationship with your real estate developer for many years to come.

Therefore, business relationship with an estate developer is such that should be taken seriously as if your breadth depends on it even before it begins. I bet you don’t want a frustrating journey for that long.

So you need to check well to know what is within your control before signing the dotted lines with especially the developer in your face.

Below are some pointers to help you check and pick a real estate developer that will make your investment journey smooth at least.

1. Existing client experience (Client reviews)

  1. The client already on site for an already habitable estate
  2. Recent clients

Client experience is usually not the same across the board. However, you can glean one or two objective facts from other people’s story.

2. Company structure and business process.

Real estate transactions often come with some dynamics. Transaction circumstance and experience are not always the same for all clients. Madam Kofo’s transaction may be slightly different from Mr Dangote’s. You must know how much a developer’s process and structure accommodates your reasonable peculiarity as a client.

3. Ease & cost of secondary sale or ownership transfer process

As an investor in a developer’s estate, you must find out and know the kind of ownership right you will be getting on a land or house. You also need to know the pros and cons of the right you acquire or will be acquiring as an investor. For instance, would you as an investor be able to transfer your right to a new investor with or without the developer’s input? If with the developer’s input, you should know at what likely cost as well as the process so you can factor that in upfront.

4. Company’s process & clause for your exit as an investor.

Irrespective of your initial purpose for real estate investment, you should have an exit plan alongside your purpose for investment. Compare your exit plan with that of your choice developer or seller. Check the exit process of the company before concluding your investment transactions. Fact-finding can never be too much before you commit to a real estate business relationship with a real estate development company.
Real estate investment relationship with your developer is a value exchange relationship. Your developer and yourself have value to bring to the table for exchange. Hence no one should be at the mercy of another.

Share this post

Comments (3)

  • Tosin Akindele Reply

    Easy to understand. but too short.

    November 1, 2018 at 8:31 pm
    • Oluwakemi Adeyemo Reply

      Thank you.

      Glad you found it easy to understand.

      This post is just a basic education.

      November 6, 2018 at 8:56 am
  • Tosin Reply

    Well done, much appreciated.

    November 7, 2018 at 9:04 pm

Leave a Reply

Your email address will not be published. Required fields are marked *