Rockefeller strategies for real estate investing
The average Nigerian wants to leave the country and go to America, the UK, Europe and either of all the developed countries. Whilst that in itself is not a problem – the problem will come when you relocate there with the Nigerian mindset and hope to get it right.
You may wonder what the correlation this has to real estate or whether I have for a minute lost my mind and gotten jealous of the people who are and have already relocated – rest assured that I have not. On the other hand, I actually wish them well in their sojourns but hope that they would learn how the good things they admire were built.
If you have ever heard the quote “The major fortunes in America have been made in the land” and said by John D Rockefeller (1839 – 1937). John D Rockefeller is very famous for his wealth, and regarded as the wealthiest American to have ever lived – then I dare to ask you this – “How did he make his wealth?”
In addition, I ask this because until the date his family has remained wealthy with this same wealth spread over up to 70 heirs and sustaining the family as the #43 wealthiest family in the 2020 Americas wealthiest families with a net worth of $8.4Bn
One of the things that made him so wealthy and even still have his family on the wealthiest families list is a portfolio that includes real estate.
Whilst he started accumulating his wealth from Oil (which was the golden resource at the time), long-standing real estate remains at the core of this wealth being sustained.
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An astute revenue generator and iconic legacy statute that the family will always have is the Rockefeller Center in Manhattan. An edifice of architectural excellence, it is also known everywhere as one of New York City’s most iconic attractions. It is where that famous Christmas tree is illuminated (a place & symbol of hope and togetherness), where Saturday Night Live and the Today Show are taped (global media business resource lifelines) and where ice-skaters make the rounds on a rink surrounded by hundreds of international flags (sports, wellness & loyalty).
These are some of the attractions that you will have heard of and want to put on your to-do list
John D Rockefeller described real estate investing as what you do to ensure that “you have time on your side”. Some of the key lessons you can take to heart from the Rockefeller experiences, and antecedents that supported these achievements include:
BUY AND WAIT:
The more undeveloped you buy land, the cheaper you will acquire it; the cheaper you acquire it – the higher your potential returns can be (especially if the surrounding elements align to give it further value).
Whether in certainty or in doubt, you can acquire real estate and hold for as long as you want knowing full well that when it’s time to reap the benefits, you can’t ever lose out. Rockefeller applied the Buy and Hold method to real estate and it worked lucratively well for him.
TAKE CALCULATED RISKS
When he leased the space to start what is now the Rockefeller center, John D. Rockefeller, Jr had the intention to build the complex with the support of the Metropolitan. The crash of 1929 however forced him to self-finance the project and build it himself.
What this did, was to give him extra leverage to set prices at his preference and recoup his investment with minimal recourse or interest repayments thus giving him more value & probably paying less tax on his Oil business company tax.
HEDGE WITH REAL ESTATE
Seeing as the value of real estate keeps appreciating, there are very limited chances where money generated and reinvested in real estate would appreciate and in future give more value and increased net worth that could be leveraged.
SECURING THE FUTURE
Proceeds from real estate investing have been a constantly referred to benefit that even Nigerians have made. Being able to bail yourself out of a tight financial position as Femi Otedola did is an example. Other use cases for the proceeds include being able to earn incomes when your regular jobs have been ended due to age, disability, a choice to informally retire and/or death of the breadwinner.
Let me stop with these four lessons for now.
And in closing, I will leave you with these few words of mine.
- When in doubt, real estate investing is the right asset class to allocate your money into, but it’s also a great diversification tool – you can hold it for a very long time.
- Real estate is a product but when scaled into a business, it is an income generator that not only pays for itself but pays you and your generations to come too.
There is so much more to real estate than just wealth creation. It’s the foundation for generational wealth, legacy and nation-building.
And as a nation of citizens, if we are to gain true and long-lasting independence, we will need to harness the less spoken of lessons of real estate investing as the western world builders have done before us to rebuild not only for personal gain but also for the greater good of all of us.
References: Wikipedia (John D Rockefeller)