WEBVTT

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Hey, hey, good num folks
all wherever you are listening from Legos,

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the US, the UK, Canada, welcome to another spaces with me kalu

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Aja. I call it the money
spaces. And here we're talking personal finance,

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the economy and of course how that
all relates to your personal wallet.

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We want to make it personal to
you when we talk about economic topics,

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just how does it affect you and
how can you take advantage of it?

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So a real great trick this week. We've got the guys from AM Realty.

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They've been here before and essentially what
they do is they have this unique

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take on real estate yield right how
they have a real investing interesting take on

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realists and investing in Legos. That's
where they're basically running the operations. So

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I've talked with them. I said, hey, we've done the first chat.

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They pitched something. Let's bring them
back see how that has gone.

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See how we can also learn quote
unquote copy from them. If we're outside

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legals, I want to do this
or how we can also partner with them

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and essentially gives us an idea into
how else we can invest in Niger.

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You know, if you know the
market right now the dollar is basically getting

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valians getting weak and fixed in comrades
are also dipping Downwardso any investment that gives

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us an outlet where we can end
more yields, we want to talk about

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it. So great place to have
am Realty common guys are on mute.

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Say hi and let's get speaking.
Hi. How are you? How are

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you doing? So you're very shy. You did the mute real quick.

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Wanted to introduce yourself, tell us
about the company, tell us what you

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guys do. Then I have a
few questions. Then I of course the

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audience will want to ask you some
some crisis as well, so you've got

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to closer or thank you very much. Call um everyone, and of Realty

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that the Realized Development Firm indigos.
We specialize UM and they're developing properties and

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then showing that our investors optimize every
penny spend. And one one problem that

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we realize before firm about three years
ago was we realized that resent investment in

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Mageria was was more will developers markets
you know, developer you know used property

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and sales to investors or clients,
they really don't pay attention on Most developers

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will pay attention to how much returns
that the depayer gets overtime, right,

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and that was the loople we discovered, and we decided to start the roaders

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to develop met company and at the
same time pay so much attention to the

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returns. So we transitioned into asset
management. So after development, we have

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declined to maintain, manage and market
the apartment to ensure that they get optimized

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returns monthly, culturally or yearly.
So that's the summary, gotcha. So

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you basically take over the property and
you're able to squeeze out more rentals from

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that property in legals because the background
is this, right. If I was

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to invest one hundred millions and to
build a property in legals, and I

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basically went ahead and I gave that
property out as a rental unless that guy

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pays me ten million nina a year, Really I'm doing less than ten percent

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yield return on that property. But
if I did the same investment par takul

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the same hundred none and I've bout
to say a government bond is that naira

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or even dollar, I'm making more
money. But realsies seem to be this

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thing that's supposed to give us,
you know, returns and also beat inflation.

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So this is why this topic is
very very interesting that how else can

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we if we're investing reality and how
else can we squeeze revenues? So tell

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me, let's let's going to knots
and boats. How do you guys do

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it? Give me the knots and
boats? What do you do? You

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get the building? Who owns?
The building is owned by? If I

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have a building, I own it, I give it to you guys.

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What happens interesting about what we started? Yes, I can. Yeah.

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So when we started, like three
years ago, we're building for rents,

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you know, like everything got apart
or every lowlad wants to do right.

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So this beauty property putting it out
for rent, and I get like,

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I'm all right out. We realized
take a last time, the booming shoplet

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markets. That was after the COVID
camp. Yes sorry it cale came in

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that I had to heah. So
so we didn't realize that the COVID nineteen,

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you know, give birth to a
new markets. I mean that was

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the shot that markets. We realized
that people could make even for X what

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it would make on I'm not rental
by doing shoplets. But The problem is

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shotlet has a lot of it has
like higher printing expenses, so you're not

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like managing multiple shoplets. You're really
not optimizing um whatever you're spending to manage

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or maintaining properties. So we decided
to like two model the baits with being

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like twenty five twenty six units of
studios and one bit of a partlets.

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So we started two in it and
turn the entire facility to shop that right,

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Yeah, and we ensure that the
prising and very competitive. So a

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lot of our clients would usually go
and pacternize your hotel like Police three Sta

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Hotel in Leaders for like thirty thousand
and we were offering a rumor de part

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of fully service Netflix Wi Fi.
You have a kitchain, you have a

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barn, door, you have you
know, you have basically everything for twenty

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five thous and it was it was
good business for us because we were managing

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about twenty flats, so we're buying
hundred K diesel e serving the entire flats,

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so we're optimizing expenses, running the
place efficiently, and of course delivering

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returns to investors. So the business
with it was simple. We pitched the

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Vaga to run investor, you know, to buy up multiple units, so

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you have twenty flats, twenty investors
who own different facts. You know,

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we didn't manage into building as an
entity. As a business entity, you

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know, ensure that the operating expenses
is divided infinitely across all the units,

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the manager doctor all operating expenses,
the doctor management fee, and sending their

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returns monthly. So for the past
three months, I think the last time

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we were on this space we were
back launching, So this is like a

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third month and we are paid dividends
consistently every month since we started launch.

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So um and the rent O Youths
has been as fantastic. I mean,

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I really an investor is making between
two fifty k two three fifty k monkey

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without doing everything, without lifting the
finger where we are doing the entire marketing.

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The last month we had like five
percent all two pouncy rates. And

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when I look at the data last
night, I realized that a lot of

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our clients typically would pactronize and retail
room. I was I was starting to

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requiring three days ago a gift and
he said before he started patronizing us usually

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would go to and turn around the
catch when when it flies into the datas

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for thirty five thousand, and it's
seeing better value for money a room and

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the panel you know has everything and
you're paying twenty five thousand. You know

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you're paying for ten nights and getting
ten percent discount. It's it's good value

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for money and a better substitute to
convention our preast hotel. And because of

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that we have to like scale up
more projects because where a hotail would work

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is where this would work. We're
not getting the lodgery vacation, the naki

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or uterial an. We're solving the
real demand, a real need. People

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fly into legals need a hotail.
People fly into the drial need and hotail,

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and we see our properties as better
alternative to painted five thousand for a

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single room hotel. So the model
has been grellier. Vessels have been smiling

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because we running smugly sentily started.
So if I could summarize, it's just

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more like you take an existing building
that's a four bedroom flat and you're able

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to convert that for bedroom flat to
save four income ending spaces. More or

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less you you are. We take
down to what we do is we go,

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we go and meet lands that are
we go to meet landowners that have

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properties that are under developed and under
utilized because we don't have money to buy

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the land out tracking right, So
good medium and say you know what this

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land is generating your five hundred up? You have twin flats giving you five

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two paper more when you saw everything
up in a year, you're any like

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five hundred kid, and not this
building off. I will develop it,

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but I own that building for the
next twenty five years, so I'm not

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that building en off any five hundred
kid. I'll triple your return. I'll

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give you up on five millions a
year. But I want to build my

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own type of structure and manage everything
because we have to you know, return

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back dividends with verson. So we're
not down the building rebuilt from the scratch

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because you know it has to compute
ourselve when it comes twenty four hours electricity,

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we have that invert the stands.
We have like an undrective genera.

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So we're like funding livercing the entire
structure. So we take down the building,

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um list the land for say twenty
five years, you know, triple

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what the previous owner has been any
of that land every year. You know,

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during the period of the lease and
then um some lease to the investors

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that you know contribute from some biet
of the property. Then will we start

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operations. We then share dividends to
all of them, every mounts. So

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if I own the land, if
I own the land, I get dividends

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plus the rental. So what do
those in landowner get? You pay me

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the lease. You pay me a
lease, so we pay them lease right,

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So um, so it depends.
So there's a work to do the

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financing and the structure and the due
structure. So look at what what what

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you are bringing to the table.
So what's the value of that lease?

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So the property is what say on
drive musion right for twenty five years,

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we departies were twenty five years as
the value of that lease. So we

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then structure payment plan you know across
that twenty five years you know, with

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the owners of the land them yearly. The we operate on that on that

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on that land for that period of
gotcha. Gotcha. So then the investors

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that added the ones that end the
return. So if you have got the

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land that's between you and the owner
of the land. I come as an

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investor and then earn the rental returns
from investing in that particular project. Yes,

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excellent, excell what else is there
for? So how much in terms

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of returns? And I didn't know
more to ask about APIs? But if

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I was to invest give can you
can you give me figures? If I

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did the community to break it down
for me, just maybe I should Okay,

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yeah, right, thank you very
much to my names that you am.

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Also, I wrote this to get
on my wa um. Basically,

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let me probably pro just break down
what you know you haven't persons you look

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out for when you are making sort
of like a really estate investment generally and

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investments in nature. But I just
poat it down to rest. So this

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is it you ask Carly said that
you have a riskless government where the government

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can just print money and pay you
seventeen percent you know, fifteen seventeen percent

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risk free right for five ten years
depending on the you know, ten ten

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of the bond. Right. So
you as an investor, you see something

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like that, right. So now
if you want to take extra risk to

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invest in something else that's not that's
bond, right you you you request a

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premier. Now you look at the
inflation rates in the country currently. If

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you have rate. The inflation rates
for probably like over the past five years

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moving average probably are like nineteen percent. Current one is like ten two percent,

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right, but you still want to
use like a moving average what has

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been obtained for like past three five
years. That's like nineteen percent then,

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so that's like an extra four percent
premio mode or less. It's like two

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three percent premiome already on the government
bond that you request. Then Also because

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it's real estate, you need another
extra liquidity premium on it, right,

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because real estate is not you know
you depending on how you where you're buying

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that if you're buying the property out
right, for example, you know you

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are you are you have like upside
in the capital gains of the property whether

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right, So if it gains value
over time, you can say it and

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you know what a hard price,
right, But for a lease, as

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my wife's talking about. So I'll
go into that now, but let me

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just you know, so it means
that when you are looking at these percentages

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at the end, you're probably looking
for something in the range and render youth

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of you know, twenty one,
twenty two, twenty three percent, you

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know, around that range by year
for that investment. To actually makes sense

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to you that cash you youth by
year. So that's that's let operating incommoditive

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and the revenue that's going to the
let operating incomar what you go into your

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pocket because you know you have like
operating costs, you have all of those

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courts, you have taxes that are
going to play the men. You have

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all of that. So after you
do that, you are looking for that

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twenty three percent. So that's what
you should be looking for right as an

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investor you're going out, anybody wants
to take your money should be able to

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show you, like, oh,
a mathematical way of you to generate or

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for you to you know, generate
the amount pay before they can deign to

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take a money. So what we
do year now is that because we are

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less, you have no access to
capital gain. So it means that every

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catch flow at that property you're produced
during that period matters. Every NIRA from

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that place, you need to find
a way to optimize it. So now,

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because with the way we do with
where data is working out at the

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occupant syid, I can tell you
that annualized, with what we've been able

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to deliver to our investors, we
are doing around two in five twenty six

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percent before you enter. You now, because it is a lease for you

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know, fifteen twenty years. The
rate of return, that's the I the

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rate of return or that is a
part of thirty percent because it's for a long