ALIKO DANGOTE’S TOP 10 REAL ESTATE INVESTMENT SUCCESS SECRETSOluwakemi Adeyemo
April 6th, 2019 I checked Google notifications to catch up on the latest news headline and I saw the below caption in bold.
I once withdrew $10M cash just to look at it – Aliko Dangote – Punch Newspaper
The caption was extracted from Mo Ibrahim Foundation’s 2019 Ibrahim Governance Weekend interview of Aliko Dangote that took place in Abidjan, Côte de voire.
Read the extract below.
“You know the way it is, is that when you first start a business, your target is to make your first million, you know, okay fine and I did that. But you know after you know a year or so, I realized that look I have much more than $12, $13B. You know and I say okay fine all these numbers are just written numbers you know and one day I went to a bank you know at that time there no restrictions and I wrote a cheque and cash $10M and I took it home for myself. I cashed $10 million dollars and put it in the booth of my vehicle and I went home and I open it and I look at $10M and I say okay fine. Now I believe I have money. It was in the booth of my car and I went there by myself. I drove myself to the bank, I cashed the money and you know I put it in my room and I look at the money and I took it back to the bank the next day”
You can watch and listen to his exact words in the video from 32: 52mins – 34:08mins or the entire interview via the link at the end of the page.
One attendee, a South African entrepreneur asked Aliko a question that goes “…..if you were 21 years old, what 3 sectors would you focus on creating a business in and what 3 factors you would believe would make you succeed?”
Aliko Dangote in response says “…….ICT or Agriculture are two promising sectors. One of the biggest issues with us Africans is that we spend our projected incomes. Once you start doing business, business starts doing well rather than for you to keep investing in the business you start spending money and thinking that profit will continue to come. There are ups and downs in business so you need to be very focused and say okay fine what do you do and how do you do those things.”
Mo Ibrahim cuts in saying “so you are not supposed to buy a Porsche car..…”
Aliko Dangote responded by saying “No. You see those luxury things they also take up your time which will not make you focus on your business, I mean I don’t have any holiday home anywhere. I don’t have a house anywhere but I know people who are working for me, they have a house in London but I don’t.”
As a real estate enthusiast, I can relate to Dangote’s perspective on his response about not having a vacation home anywhere. It is not like it is bad to have one. It is also not for lack of having more than enough money to buy a holiday home around Buckingham Palace to be a neighbour to the Queen of England. If at least for the prestige it is popularly believed such choice locations bestows upon one.
So, here are 10 secrets I have found out that governs Dangote’s real estate investment decisions. These secrets have contributed to his real estate investment success. These secrets are to successful investing what your ATM secret pin is to access your cash.
- Aliko Dangote has a clear personal definition for real estate. It is important that you have a personal definition of real estate. To some, it means just having a roof for shelter and that is it. To others, real estate means the earth crust and every bit of mineral in it.
- He understands the purpose and application of real estate. There are several applications of real estate that you will discover when you have a clear personal definition and understanding of the purpose of real estate.
- He understands real estate exists in different forms and understands the application of those forms. Talking about the cement factory, the factory sits close to a huge limestone deposit in Ogun State. Limestone is the major basic raw material for cement production. Minerals found in the earth’s crust is a part and form of real estate.
- He understands the relationship between real estate and the development of the people of a nation. He could as well decide not to expand Dangote group and he would still enjoy the rest of his life living large. Expanding the business of rice farming to production of 1 million tons of parboiled rice and sugar production will generate 150,000 jobs over 4 years.
- A shrewd businessman who understands numbers, rules and laws. Hence understands what kind of real property fast becomes a liability or a total loss. It is not about buying a property for the sake of it or just any other reason that does not add up. It is important to understand the dynamics, the numbers, the laws and getting the best value in return on investment.
- He knows how to in a different way get what a vacation home would deliver to him. There are many other ways to get things done and to achieve a specific goal. He makes use of his options wisely.
- He knows he would have to worry about keeping a vacation home in good shape. Why worry about that when he could as well be thinking about keeping the status of the largest cement producer in the world for as long as possible or how to buy Arsenal football club. That seems to be a better thing to worry about.
- He understands and appropriates the value of real estate. If property abroad will serve him profitable purpose, I am sure he would have one or two abroad. He may own a property outside Nigeria that provides jobs for people and also generates income for him.
- He is a patriotic citizen who would rather invest in real estate to create more millionaires than invest in a property that barely creates 2 millionaires. He believes as a Nigerian citizen, it is best he develops his nation.
- He knows the difference between ownership and use of real estate and how to get the best value from each option individually or combined. Not owning a vacation home abroad, does not mean Dangote does not own real estate of great value. He could make use of one whenever the need arises. Just like Uber makes using a car easy without having to own one. Dangote would use real estate to create stocks and shares being traded in the money market.
Thanks to Mo Ibrahim for a humorous yet educative interview of Aliko Dangote.
Applying these highlighted secrets is not rocket science. You also can be on your way to successful real estate investing by applying these secrets. Good for you if these secrets are clear to you. Go on and begin to apply them.
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Link to full video interview: https://youtu.be/OBnQ21NSpMw