Kenyan Property to Investment-Creative Real Estate Financing

Do the creative real estate financing techniques you hear about really work? Yes and no. They likely have all worked somewhere for someone at least once. The important point is to understand the principles involved, so you can find your own creative ways to invest in real estate. Here are ten methods to get you thinking.

 1. Use hard money lenders. Ask around or find these online. These lenders specialize in short-term loans at high interest. Typically, you use this type of financing for a "fix and flip." You can get the money fast, and if you make Kshs. 2,700,000 on a project, who cares if you paid Kshs. 900,000 interest in six months?

 2. No-doc or low-doc loans. With these loans, no (or low) documentation of your income or credit is required. You can find banks that do these online now. You'll only be able to borrow 70% to 80% of the purchase price or property value. However, if you have 10% in cash, you might be able to borrow the other 10% or 20% from a friend or the seller.

 3. Seller financing help. Sometimes a bank will loan you 90%, and allow the seller to take back a second mortgage from you for 5%, leaving you needing only 5% for a down payment.

 4. Land contract or "contract for sale." Called other names as well, this just means the seller lets you make payments, and delivers the title upon payment in full. I sold a rental this way for Kshs. 90,000 down, because I wanted the 9% interest, and the higher price I got.

 5. Credit card advances. Suppose a seller will take Kshs.900, 000 down on a fixer-upper that you expect to make Kshs.1, 800,000 on. Why not use credit cards? If your card limits allow for repair money too, this is a true 0-down deal for you, and if you turn the project in six months, you will have paid maybe Kshs.90, 000 or Kshs. 180,000 in interest on an 18% credit card. Don't let kshs.90, 000 get in the way of making Kshs. 1,800,000.

 6. Use your retirement accounts. The laws are pretty complex in this area, but you can check with a tax attorney to see how you might borrow from your own retirement account to finance real estate investments.

 7. Borrow from friends and family. If you go this route, keep it all business. In any case, loaning you money at 7% isn't a gift if their money is getting 2% in the bank.

 8. Use Kenyan Real Estate note buyers. Suppose the seller needs cash. He raises the price, and sells to you for Kshs. 9,000,000 with no money down, taking back two mortgages from you for Kshs.8, 100,000 and Kshs.900, 000. He arranged (or you did) for a note buyer to pay him Kshs.7, 200,000 cash for the first mortgage at closing, getting him the cash he wanted. You pay two payments now, one to each note holder, but you got in with no money down.

 9. Borrow on another property. If you take out a home equity loan for a vacation, and then forget to use it for that, you can later use the money for the down payment on an investment property, without violating the rules of the bank that gives you the primary mortgage. In other words, you got in with no cash of your own.

 10. Start partnerships. For bigger projects, you could arrange for five investors to each put money into a partnership, with your share being the management responsibility instead of cash.

Remember, these ten creative real estate financing techniques are just to get you started. 

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Diani Beach Kenyan Real Estate Baby Boom

As the real estate market in Kenya takes a nose dive, alternative investments like Diani beach Kenyan Real Estate could keep you afloat and in the sun! In times like this it’s good to have an alternative to futures, options, and hedge funds. The real estate market in Diani is said to be one of the most stable in south coast region of Mombasa. It has been quietly booming for a few years and is expected to continue on its path. 

What makes Diani beach Kenyan Real Estate such a promising investment?  

About 15 years ago, you could buy a piece of land 50 meters from a beach of powder white sand and aqua blue water for Kshs.900,000 and it would be worth more than Kshs.45,000,000 today. There are still investment opportunities like this available in undeveloped coastal areas, and up and coming trendy tourist destination. Although there are fewer than in the past, steals like this can still be found. 

But more importantly, foreigners continue to move to Diani, bringing their savings with them. Many are retiring or buying a second home, some are retiring young and some are coming to do business. There are several reasons for the influx. Property is cheaper than in the other counties in Kenya, as is the cost of living, and a familiar standard of living can be maintained with the added benefit of beautiful beaches.

Furthermore, in 2010 the baby-boom generation will start to turn 65 and retire. Baby-boomers will retreat from their failing retirement plans and insufficient Medicare system and move to independent retirement in the sun. Diani will become the new Florida of the US, and you can already see the retirement developments going up and banking services for transferring Medicare checks.

Real estate has always been a great investment in terms of providing cash flow, assets and tax breaks. With the US market in the dumps, Diani offers the opportunity to invest in a new growth market, in a country with a stable economy, and a friendly foreign policy. Diani beach Kenya real estate is an excellent alternative investment offering high returns with low risk.

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Customer Service – The Kenyan Real Estate Revolution

Traditionally, Kenyan Real Estate has been viewed as a sales industry in Kenya. But perceptions are changing. Agents around the country are coming to believe that the key to real estate success is service – not sales.

Competition and technology now give customers almost unlimited choices, so agents are having to work harder and spend more to win listings. They’re discovering that business success comes from repeat business and word-of-mouth.

And customer service is the key.

Loyalty and good-will can’t be bought – not even with the sale of a house. Customers like to be treated with honesty, respect, and integrity. They want a realistic and accurate property appraisal. They want an agent who commits to action. They want to be able to speak to someone who can help them when they call. They want to feel welcome when they walk into the office. They don’t want their intelligence insulted by advertising. They don’t want to be fed a line (even if it is what they’d like to hear…).

Agents with business sense know that if they can provide this customer service – if they can pioneer great customer service in Kenya real estate – they’ll have a real edge on their competitors. Far from being an impediment to success, they see today’s marketplace as an opportunity to flourish. 

Obviously, the sale is still critical, but it’s part of a greater whole – almost like a critical KPI (Key Performance Indicator). It’s based on the simple premise – serve and you will sell. The premise holds true because all the per-requisites of a sale are intrinsic to good customer service: The price is realistic, the marketing is intelligent, the advertising appropriate, and commitments are made and kept. Vendors, buyers, landlords, and tenants alike receive the same high level of customer service. 

5 Quick Tips for Finding a Service Oriented Agent

1) Ask to see references – It’s not that much different from a job interview. Think of the agent as the job seeker, and encourage them to prove their customer service qualifications. The right agent will be only too happy to provide as many references as you’d care to see. 

2) Analyze their business growth – Assuming their references are in order, ask after their business growth. References provide you with qualitative evidence of customer focus. You should supplement this with something quantitative. If the agent is still growing rapidly in today’s environment, then they must be doing something right. 

3) Analyze their market share – Like growth, market share can be an indicator of customer focus. Ask what their share of the target market is. 

4) Observe their behavior – Do they return phone calls? Do they commit to action? Do they meet their commitments? Are the punctual? Do they keep you informed? Do they remember important details you provide them? 

5) Gauge access to staff – When you first called, did you get to speak to someone who could help you? If not – if they took your name and number and told you they’d get someone to call you back, this might be indicative of their customer service approach. 

 

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Curb Appeal Matters When Selling Kenyan Real Estate

First impressions matter most. This is one concept that many homeowners trying to sell their homes and first time property investors trying to sell or rent property fail to understand. Curb appeal is the first impression when it comes to a house. This is the place that you as an investor or seller want those driving buy to think of as home. For this reason you should pay careful attention and spend some degree of time and effort making the outside of the home inviting and appealing to potential buyers or renters.

One of the first things that people will notice is crumbling paint and bland or tired and faded colors on the exterior. Vinyl siding is often inviting because it is easily cleaned and reinvigorated. It also happens to be fairly low maintenance, which often appeals to buyers and renters alike. There are those however who will argue that siding detracts from the potential personality of a home. To each his or her own in this as it is a personal decision on behalf of the buyer and the seller. Regardless a clean and crisp paint job or siding makes a much better impression than an apparent state of disrepair. 

Remember those first impressions are important. If the outside of the home is rather unimpressive potential buyers are quite likely to discover the diamond that is the inside of your home. Another thing you can do to add curb appeal is to plant low maintenance flowers and plants around the exterior of your home. You do not want to invest in plants that require constant care nor do you want to seriously invest in plants that are going to grow out of control and look unwieldy. At least you do not want to plant these around the exterior of your home that is facing the road. Bushes and climbing vines do well in many cases along fences that surround the property however or as a dividing privacy line between your property and neighboring properties.

If you live in an area that isn't conducive to green grass you may want to consider some sort of hybrid that can thrive with less water or choose some form of landscaping that doesn't rely on large open patches of grass in order to be beautiful such as xeriscaping then that is quite probably a wise idea. The point is to make the house as attractive on the outside as you hope those viewing the property will find the inside. 

Another thing to keep in mind when making the upgrades is to clean the sidewalks and driveway if it is concrete. It is amazing what a high power pressure washer can do to your sidewalks, driveway, and/or front porch. Don't stop there however; take the time to make sure your doors and windows are clean as well. These little things often make the biggest impression. If you care properly for the exterior of your home and keep it nice and shiny chances are (in the buyer's mind) that you will have taken the same care of the inside of the home that they are quite possibly now considering.

Taking the extra time to insure that the outside of your home is attractive to buyers can translate into higher and quicker offers than neglecting the essential real estate between the front door and the curb. Do not overlook this powerful piece of advice and you should enjoy a little more success in your efforts to sell your home or investment property. 

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Credibility One of the Most over Looked Items in Kenyan Real Estate

There are several different ways I built credibility.

First of all, like it or not, people make value judgments about you before you even open your mouth.  Think about it.  What preconceived ideas do you have about a bag lady vs. a movie star?  You get an image but the reality is you don't really know anything about them.  It is in your best interest to present a well-groomed professional image and make sure your staff members comply as well.

This professional image extends to the meeting location you choose, the marketing items you provide, and your presentation.

This is whether you want to borrow money, buy their house or sell them a home.

The first verbal message should be to gain rapport with the guests.  I share that I have lived in the area for 10 years and I have kids in school.  I establish credibility as a member of the community.  We are in this together.  If you lose, I lose - and I'm not gonna lose because I have a lot at stake.

The actual presentation sends one clear, consistent message such as "you loan me money and I'll give you high interest payments".  That's it.  While I have other facets to my business and other interests, I do not waiver in my message.

Sending a straightforward message in an easy-to-understand way, to convey credibility because there is no "small print."  You let them know this is a simple program.  These are the simple forms.  This is the way it works.  Period. 

Current action conveys credibility.  I always mention one of my most recent deals which is usually that I bought and/or sold a property yesterday or within the last few days.

In my presentation I acknowledge their fears and openly address a big one when I show the slide that says, "What Happens to my Investment if Alan Dies."  They usually chuckle because they thought of that but didn't want to say it.  I let them know that the corporation is structured to sell properties and their principle and interest will be paid as agreed.  Talk about credibility.  Have I not crossed all the T’s and dotted all the I's with this presentation? 

Also, If you say you are going to do it, DO IT.

Someone might be testing you by loaning a small amount just to see if you are for real.  Make sure you send them their interest check at exactly the agreed upon time for the correct amount.  I've seen this happen time and time again where the lender comes back a couple months later with more money.  Then a few months later they come back with even more money.  You must prove that you are for real and that you do what you say.

If you break that trust, it's over.

Finally, I build credibility by being reachable.  I have an office that they can stop by.  I have an answering service that picks up my calls 24 hours a day, 7 days a week and relays important messages quickly.  I have a web site where the lender can see what I'm doing and, they can send me email and I respond promptly.Credibility is powerful. Learn to use it to your advantage. 

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