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What is the best Real Estate investment advice I have received?

I was like everyone investing in small saving funds and never looked at innovative Real estate investments since I was too busy at my work (excuse!!!! 😉 ). I always wanted to be unique in everything I do but did the same mistakes as everyone did. My first investment was in stocks without any knowledge and I lost a ton as you all did.

My first traditional Real Estate Investment

My next investment went into buying a flat when I was 23. Banks rejected my loan application since I was very young. My dad signed the agreement to get me a loan.

I started paying my EMI  for the first one and soon added another flat (greed never stops us!!) into my investment in less than 2 years. Sooner or later all my earnings were just going to pay my home loans.  Paying this for 5 years I then realized I am just feeding the bank but making no return on my investments.

My success secret on my Real Estate Investment

One day I happened to meet my friend for a coffee. This guy invests 30% of his yearly earnings on Real Estate. Our agenda was nothing to discuss on real estate but out all casual discussions we had he explained to me about one of his investment which really fascinated me.  Next day my friend introduced me with a group of people who were in real estate and making good returns. They quit their job and were literally enjoying their life. I was a little surprised but finally understood the secret of investment.

When we buy an apartment we generally either buy in a Pre-Launch offer (before the construction begins) or when the construction is in progress.

There is something like pre pre launch offer in property investment my friends were investing in. This is way too early before the construction begins (like 4 years before the construction starts).

This is how it works. My friend’s group identifies a land which could be a potential site in future for construction. They then pool all people who would be part of this deal and would get this land registered. Now, this group responsibility is to identify a builder and offer this for construction in 4 years and in turn offer a flat for all landowner who was part of this deal.

Once the builder is identified and offered the land, all owners would be allocated with a flat as per the plan. They could either sell this or hold this for rental income.

The way it worked out is interesting. Their cost of acquiring land was 1/4th of the cost you purchase a new flat. This way when they sell they make 300 to 400% return in 5 to 6 years span. I know of guys who owns more than 20 flats and are happily retired with a rental income.

I started being the pool and started gaining.

Points to consider

  1. Potential land that can grow in the next 4 years
  2. Right documentation
  3. The only goal is to offer this for development and nothing apart from this like resell the land etc.

The cost these guys acquired land at much earlier stage helped builder also to gain from the equation.

I would suggest looking at these options. I would be happy to guide if someone needs help.

Keywords: investment, investment banker, investment banking, investment in India, investment in Real Estate, investment in gold, investment in sip

7 replies on “What is the best Real Estate investment advice I have received?”

Hi , i have been consisting investing in mutual funds since long time both sip and lumsum for the past 8 to 10 years. I even tried investing in shares but this didnt give me much but turned out to be bad experience. Now i see lot of potential in real estate. Many of friends are investing in purchasing for a flat with a budget fo 80 to 90 lacs paying huge EMIs which is a bad idea. I dont want to do that .. I want to invest like you in purchasing a land. But the challenge how and where to find such kind of people to invest is the challenge.

Hi Shyam:
Nice to see that you wanted to come out of the traditional style. I can help you with this. I will share my Cell number on your email to talk further.

Hi Amit:
In fact 90% of the crowd has the same concerns. Our minds are tuned with traditional investment and its not wrong though. With network and right contacts things change.

Hello yaswanth, I read your blogs and really like you ideas and strategies regarding real estate investment.

I really want to get into this kind of investment where we can pool up as a group. I live/work in the US but want to make real estate investments in Hyderabad which would have good ROI in long term

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