Vestpay Real Estate

Brief History About Real Estate Investment

Ownership, specifically the ownership of land, was the basis of all the investment opportunities we see today. Without a stable population and a set location, trade and commerce between groups is limited.

Ownership has moved from being established by strength to being something you can buy, sell, trade and rent. There has always been a trade-off for tenancy, a fee paid to the owner for the land and its protection. This responsibility was first afforded to tribal leaders, then to kings, and finally to landlords. Now we have the power to own our homes, a development that has changed the way people live.

The real estate industry traces its roots all the way back to the early 1800, the first real estate brokerage was in 1908, the national association of real Estate Agents in the United States of America. Formally called Royal Estate, the term "Real Estate" is first recorded in the 1660’s and holds the English sense of the word. As per sources, Real (derived from Latin is the meaning of “existing” “actual and genuine’’) Estate refers to the land. Real Estate refers to the property consisting of houses of land. Real estate investing involves the outright purchase, management, rental and sale of real estate for profit.

The Benefits of investing in real estate provide investors with long term financial security when you have a steady flow of cash in succession. It means that your property’s value is most likely going to increase because land and buildings are appreciating assets.

The majority of people invest in real estate for the steady flow of cash they earn in the form of rental income. Depending on the location, you could be earning significant income to cover your expenses and make you extra money on the side. And you do not have to stop at investing in one property at a time.

If you already are in real estate investment or just starting out, note that real estate is not a short-term investment plan. Other benefits of investing in real estate are the appreciation of capital assets, example land over time. In other words, your property’s value will be worth way more 30years from now, hence why investors are in it for the long run.

Unlike stock market investments, real estate investment does not wildly fluctuate on the daily. Investing in real estate is to hedge against inflation. With high inflation with open arms because as the cost of living goes up, so does their cashflow. In conclusion owning property generates wealth.

Why Vestpay Real Estate

Vestpay Real Estate opportunity financing focuses on enabling retail investments in real estate acquisition, development, construction and ownership. Funds may be used to purchase undeveloped land with or without intentions of developing on it. In the event investors want to develop the land they recently acquired; they may require fund development plan, to turn raw land into a building site.

In some occasions, offers may present opportunities to investors who want to both acquire raw land and develop it at the same time. This brings about a wide range for versatility. Other opportunities may include investing in the building or renovation of a real estate project and returns will be shorter term.

Our Partners

Vestpay will be engaging the services of meticulously scrutinized partners to bring the several real estate projects to fruition, some of which include

Globetrot Property
Nigeria Limited

Bamboo Real
Estate Company

Vestpay Real Estate Models

Vestpay Pooled Fund Model

The Vestpay Pooled Fund Model will be broken down into units, where you invest whatever you like toward the fund and get the same return as everyone else. It also allows you to pick the individual projects you want to fund, which adds a more personal and participatory dimension to your real estate investment.

Vestpay Rental Property Model

We also have the Vestpay Rental Property Model which directly comes with its own unique advantages and disadvantages.

When you buy a rental property, you can predict the cash flow, or ROI, with great accuracy. You know the price you’re paying, you know the market rent, and you can forecast the long-term average of your expenses, such as annual repair costs, vacancy rates, property taxes, property management fees, and insurance.

Not many investments offer such predictable returns. When you can predict the return of any given property, you can buy nothing but good investments. You also control the investment. You choose the property, the tenants, the management practices. You can invest money into property upgrades to raise revenues. When was the last time the CEO of a stock you owned called you up and offered you control over the company’s management? No one says you can’t live in your own rental property.

Vestpay House Hacking Model

Vestpay House Hacking Model is simple: You bring in other people to cash in on the investment with you little by little. For example, you buy into a multifamily investment property, move into one unit, and rent out the neighboring unit or units. Your neighbor-tenants continue to pay for your complete ownership of the property in little amounts over the long term, and you live there for free.

But if multifamily housing doesn’t appeal to you, there are plenty of strategies to house hack single-family homes as well. From roommates to accessory dwelling units to foreign exchange students and beyond, you have plenty of ways to turn your potential home into a source of income.

Vestpay Wholesale Model

Finally, we have the Vestpay Wholesale Model. It involves finding a great deal, putting it under contract, and then selling that contract to another investor with a profit margin. We never take title to the property; we merely connect an eager seller with a willing real estate investor.

For example, say we find a property worth $150,000 and we get it under contract for $110,000. We reach out to our network of investors and offer them the property for $125,000 and within a specified time, we find a taker and sell the contract to them. Everybody wins!

Fundamentals Types of Real Estate Costs

There are four fundamental types of real estate costs – time, energy, money and lost opportunity.

Being able to accurately anticipate real estate project costs is essential to the development of a successful project as it sets the baseline for what revenues need to be generated by the project to make it viable.

Vestpay Real Estate Opportunity will be considering the following types of real estate ventures – office, retail, single-family, multi-family, industrial, medical, educational, hospitality or mixed use.

Before any project is taken on for crowdfunding, the following costs will be deduced:

  1. Market analysis fees
  2. Legal fees
  3. Environmental studies
  4. Feasibility studies
  5. Zoning and traffic studies
  6. Land costs
  7. Architect, design fees
  8. Permit fees
  9. Land preparation, demolition, utilities, grading
  10. Materials and labour
  11. General Contractor/Subcontractor fees
  12. Interior build out/finishes
  13. Inspections
  14. Security, telephone, cabling, millwork
  15. Cost of money required to assess opportunity, buy, build, and operate the project (cost of equity/debt).
  16. Property taxes
  17. Insurance (where applicable)
  18. Management fees, building maintenance & repair, property lighting, water, electrical, landscaping, internet/technology, janitorial, window washing, parking lot maintenance, security, sales/leasing commissions, elevator, water & sewer

Real estate project costs vary from city to city and from one moment in time to another. When anticipating real estate costs some of the most common problems include:

  1. Underestimating
  2. Missing types of cost
  3. Supply chain disruptions
  4. “Happy path” calculations – assuming the best circumstances
  5. Weather delays
  6. Failing to consider local labour customs
  7. Poor “up front” planning
  8. Inflation

Crowdfunding for real estate is becoming very popular and Vestpay will provide you enough information to help you make informed investing decisions.

We offer long-term and short-term real estate investment opportunities with varying ROI. We offer high liquidity, allowing you to buy and sell instantly. We will also make diversification easy, as you can spread your investments among hundreds or even thousands of properties and real estate projects across the world.

That means investors can get started with less than $1,000 and invest like their wealthier counterparts.

Download the Vestpay App for Andriod or IOS to become a real estate investor today.