A recap of Benjamindada.com Twitter space: How to invest in naira via real estate and earn in dollars.
Nigeria's inflation rate has been on a consistent upward spiral since January 2022. The last CPI rate released by the Nigerian Bureau of Statistics revealed that the inflation rate is at 19.64%. Simply put, the value of the naira is falling drastically.
To proffer a viable solution to this issue, We spoke with FinEstate Capital to discuss "how to invest in naira and earn in dollars". The Guest speaker was Emmanuel Izu, the Head of Strategy at FinEstate Capital.
FinEstate Capital is a real estate investment startup that enables Nigerians to build sustainable wealth through investments in properties in the US, Canada and the rest of North America.
The real estate platform which allows users to invest for as low as $10 is made up of licensed realtors who possess experience in property management, development and real estate appraisal across North America.
The North American real estate industry had total revenues of $917.7bn in 2020, representing a compound annual growth rate (CAGR) of 2.1% between 2016 and 2020. Industry consumption volume increased with a CAGR of 0.7% between 2015 and 2019, reaching a total of 61.6 billion units in 2019.
Speaking on how Real Estate is beneficial to investors, Emmanuel said real estate always performs better than inflation anywhere in the world (as long as the investor is not a speculator). It is primarily a better store of value.
FinEstate Capital uses real estate investing to help people hedge against the risk of devaluation by holding their investments in value-sustaining currencies that would help them drive growth and build wealth in the long run.
The startup enables users to build and expand their portfolio using multiple payment options like Fiat local currency, FineEstate wallet and cryptocurrencies. The platform is available now on the website. An app will be released on Google Playstore at a later date.
Investment Gestation period and payment method?
According to Emmanuel, the gestation period, known as the asset conversion cycle, depends on the nature and peculiarities of the real estate property. There are some that would be 3 months, 6 months and so on.
Investors can get returns as rental income and when the asset conversion cycle is completed. FinEstate Capital properties are a mix of commercial and retail properties. The short-term properties are leased out and returns are paid to investors who invest in such properties.
When the properties also reach their full asset conversion cycle, whatever comes in as capital appreciation is distributed to the subscribers according to their unit holdings.
How to create an account on FinEstate Capital
- Create your account by signing up for free on the website
- Link your bank account to add money to your wallet.
- Fund your account and start investing in properties!
How investment with FinEstate Capital works
Step 1: FinEstate Capital identifies potential real estate investment opportunities. Due diligence procedures are performed on displayed assets by our real estate acquisitions team, investment committee, and board of directors, all of whom have experience investing in and managing real estate.
Step 2: FinEstate divides the investment into equal pieces. The real estate investment opportunity is broken down into $1 chunks. For example, a $100,000 opportunity would be broken into 100,000 units.
Step 3: FinEstate charges $1 for each unit. Our property section of the app gives you access to available properties on the market. You can invest as little as $10 and there's no limit to how much you can invest.
Listen to a recording of the conversation.