Crispus Nyaga is a renowned businessman in Kiambu County. He attributes his wealth and success from selling land. Nyaga was inspired by how real estate companies were making millions by selling real estate properties. Besides, he has also invested in rental buildings making him have financial freedom.
How Nyaga Makes Money Selling Land
Nyaga saw a business opportunity where many people are not able to buy large pieces of land. He thought that if he helped such people own small plots of land, he could make millions. By then, he had only one large price of land in Kiambu County. He subdivided the land and started selling it in small plots. He bought the land in 2012 at Ksh 1,500,000. By selling the land in smaller pieces, he made a total of 3,200,000. If he had sought to sell the land as a whole piece, he would have sold it at Ksh 2,500,000. It means that he was able to make Ksh 1,200,000 extra.
He realized that buying large plots of land and subdividing them into smaller portions was more profitable. After finalizing on the sale of that land, he purchased another one acre for Ksh 1,800,000 but in Murang'a County. He subdivided the land into ten plots of 30 by 60 and sold each plot at Ksh 250,000. It took him eight months to sell all the plots. At the end of it all, he made a profit of Ksh 1,200,000. If you spread the amount in the eight months, he was making Ksh 150,000 every month.
At the time, he was working for a governed parastatal and it is then he decided to quit his job and concentrate on his real estate business. Nyaga says he does not regret leaving a job he was earning Ksh 120,000 ever month to focus in his own business. Today, he makes over Ksh 300,000 every month from his real estate business.
Nyaga's Sources of Capital For His Real Estate Business
Nyaga had worked for government parastatal for close to 15 years. At the time, he had also built some rental buildings in Witeithie. When he quit his job, his real estate business was still new and had not yet picked. As such, he would rely on rent from his rental buildings.
To start his real estate business, he began by selling the only piece of land he had bought earlier. He used the revenue and some savings he had over the years to start his real estate business. Nyaga says, it good to save, but it is even best to invest. It is because you can save for years and use all the savings in a single day. However, if you invest, you will have regular incomes from the investments. Over the years, he has managed to build a passive income that has given him financial freedom.
Nyaga's Challenges in Real Estate Business
Nyaga says that real estate is a high generating income business, but poses high risks. People in the real estate business are always a target to con men. First, he says before buying land, he has to ensure the one selling it has consent from his partner. He once found himself in a delicate situation after purchasing land from a man, and the wife was against it being sold.
Also, he has to do a land search before buying and use a lawyer to write an agreement. He says he does not purchase land with issues regardless of how much profits he would fetch from it. This way, Nyaga has managed to minimize risks in his business.
Nyaga says that his main focus now is in rental buildings. He says now that he is growing old, soon he will not be able to continue with the business. He will leave the business for his children when he retires and goes back to his rural home to start farming.