Rent: It’s Crazy Paying For A Year Or Two

Nigerian tenants are used to paying their rent for a year or two which is certainly not possible in organized economies. In this interview, KUNI TYESSI weighs what is obtainable in Nigeria as well as in America with Esiri Ohimor of International Homes and Reality as well as other sundry issues.

You have bee n out of the country for some time and now you’re back talking about real estate. Why didn’t you go into another kind of business, especially as it is seen to be a male prerogative?
I have been a registered real estate agent in the US for the past seven years and in those years I have helped quite a lot of people to own properties in the US. I got into real estate in the US by chance. I bought my first property and I didn’t think the deal went so because I felt I could have done it well better than the agent. In the last few years, the American economy has been hit by the global recession and we all know that America to a great extent is broke. One of the things we did is to hit the real estate market which has lots and lots of foreclosures because people are out of jobs and cannot pay their mortgages; the properties begin to lose value, they move out of the houses or the banks come to reposes the houses. Sometimes you hear the people saying, this house is not worth it, this is not what I payed for or I don’t want to keep owing the bank and I don’t want to keep paying for that because it’s going to take me several years to pay for it and so they walk out of the deal. The banks are not in the business of keeping the houses.

They are in the business of lending out. So they are willing to negotiate. We have seen that in the recent past, people just come from all over the world and they pick up these houses. I am dealing with them on a daily basis because the American houses are so cheap and in good areas, close to schools. People are just concerned about the basics.

They just want food on their table and they don’t care about the houses right now. So I said to myself, if I’m selling the houses to foreigners and tomorrow and they stand to benefit when the houses appreciate, why can’t I do same to my fellow countrymen? Why can’t I come to Nigeria and help people who want to buy the houses at a cheap rate and in few years they can turn around and make profit?

You are quite familiar with the psychology of the Nigerian people. What makes you think Nigerians will be interested in buying houses overseas when they can buy houses here and will hardly be under any law concerning rents and tenancy?
Nigerians are smart people and smart investors all over the world know a good deal when they see one. It doesn’t matter if it’s in Nigeria or America. But it’s all the same, between Nigeria and America there is a gulf of lack of information. A lot of people I speak to will say I’m not an American citizen, so how can I own a house in America? But the truth is that you can own a house in any part of the world once you have the money and that is the first hurdle to cross. You can be a landlord in America without living there and everyone should be interested in having houses in America. Real estates appreciate.

There are three qualities of a great deal. When you buy at a good rate, at the right price, then you have the potential for growth.They are potentialities of a great investment and what we are doing is an arm chair investment. So you practically sit in your house, make a call and state the part of the country that you want to own a house and we practically take care of everything. We have over 52 years of experience. We ensure that everything is a one stop shop because there are experts in different fields to ensure that everything goes smoothly. You don’t need to travel except if you want to.

Apart from talking to the press, what other modalities have you put in place to ensure that Nigerians are enlightened about real estate in Europe and America?
The press plays a huge role in educating the minds of the people and most people who read about us will be more informed and that’s the first step. Again we also have sales representatives who go into offices to speak with people but for me, the mass education of Nigerian comes from the press and that is why we are trying to get to them through the radio, internet and all of that.

Nigerian laws are different from what obtains in America. Is there something that can be done to shield Nigerians from what will not benefit them as far as the American law is concerned?
Yes of course! And that’s why we have a management company that manages the property. So what we do is that they ensure that everything is well with the house and they ensure that if you have a tenant, he pays his rent at the right time because we have landlord and tenant laws and they have the right to tell the tenant to leave and so you don’t have much to bother yourself with neither do you have any losses. In America, rents are paid monthly or sometimes bi-monthly and it all depends on the agreement made. So if the person cannot pay the rent, you can move him out and fall on that security that guards you and then you get somebody fresh into the property. That’s one of the laws that concerns Nigerians and the one they will want to know is that if you buy properties in America, you have to pay taxes and one of the things you will not want to do in America is to owe tax because the government will come after you.

Nigerians are used to paying rent for a year or two. Can Nigerian landlords do same in America since the properties are theirs and they can do with it as they please, especially as it concerns business?
It’s your property but you can’t do what you want to do with it in a society that is governed by laws; you have to obey the laws because the laws are larger than individuals. It’s against the law to do that. And those are some the things I see the Nigerian government trying to stop. I read something about a bill in the national assembly that will soon be passed. If Nigerians are paid on a monthly basis, then I don’t understand the rationale of paying rent for a year or two. I think it’s crazy and I’m glad that someone thinks so and they are trying to salvage the situation.

What advice do you have for Nigerians who might want to go into your kind of business especially the youths what are mostly unemployed?
It hurts to see many vibrant young people on the streets in search of jobs. It’s a business with a percentage that will be given to them or a commission. It will be a way among the multiple Nigerians who are unemployed to make some sort of living. I would encourage it because if you are doing that in Nigeria, you don’t even need an office most times. Your phone is your office and you can lease with some companies. It’s an avenue that people should try and embrace and make a whole lot of money out of it. Gradually they will get into the real part of it but for now, the young ones can start small by using their phones and making contacts. They can’t keep waiting for the government because government cannot do it all alone and they must try and help themselves and we are willing to help young Nigerians who might be interested in investment. Our doors are open.

What are some of the basic skills needed for your kind of business?
Having in mind the zeal to help people realize their dreams is the first thing to look out for and not necessarily the profit. A win-win spirit is another because you will always meet people who would keep saying no but you have to be persistent and keep knocking until a yes eventually comes. You don’t have to give up at some point. So if you are someone who gets discouraged with every ‘no’, then this is not for you. You have to roll with the punches until you eventually press the ‘yes’ button.