How do you deals with failed investment in real estate.

[Thosynho]

A real estate firm bought about 7 hectares of land in a developing part of the city for housing unit development, due to lack of funds to fully developed the 7 hectares, they decided to develop it in 3 phases.
Now after more than 15 year they could only develop phase one, presently, encroachers have taken over the other part of the land and they are unable to chase them out.
They are now caught between the dilemma of selling the undeveloped part at a very bid down price or continue to deal with the encroachers until when they have money to develop further.
What would your advise be??

Considering the case you presented, the real estate firm ought to have secured the whole land after acquiring it. They secure the land by getting all necessary documents from the seller and also from the government of the land. Once all these are done and properly documented, they would have gotten less stress in dealing with the encroachers.

 

[Kehinde]

The Home You Live In. ...
2 – The 1031 Exchange. ...
3 – Pay the Tax Bill. ...
4 – Die. ...
5 – Live In It. ...
6 – Work In It (Do You Really Want Out of Real Estate Investing?) ...
7 –, Give It Away. ...
The Worst Way.

 

[Tmanroyal]

I feel emotional right now. But my humble suggestion is to identify the real owners,real sellers and real buyers. Authentic documents should be kept and duplicated properly for court use.
And eventually make use of the military to deal with any form of resistance

 

[btaliat]

Before gettin the land, they should have done more investigation and have more legal backing. Assuming they have done this, they will just sue those encroachers. Also, before embarking on a project, we should skesdy make sure we go for what we can afford.

 

[Nurudeen]

If the real estate investor have certificate of occupancy it will be very easy for them to claim back the land in the court of law. Another thing is they need to act fast because if those encrouchers know that they are about to take a step against them then they might surprise you with bad things you won't expect

 

[Neta Sam(Samuel Odunlade)]

Land in real estate is suppose to appreciate, it does not depreciate, so the plan of the business or the vision if buying the land must be verified, also you may need to seek the help of security officers to help you out with the encroachers so that the matter Can be resolved. And you can also look for better bidders Fi the land

 

[Hammad1245]

A real estate firm bought about 7 hectares of land in a developing part of the city for housing unit development, due to lack of funds to fully developed the 7 hectares, they decided to develop it in 3 phases.
Now after more than 15 year they could only develop phase one, presently, encroachers have taken over the other part of the land and they are unable to chase them out.
They are now caught between the dilemma of selling the undeveloped part at a very bid down price or continue to deal with the encroachers until when they have money to develop further.
What would your advise be??

This is in fact a dilemma. You have to invest more money to complete this firm. You can add more people in this firm so that this process may be completed in a small time. Otherwise the time will be greater enough that you willdet profit after very long time.

 

[Adexgrace]

Have not being a victim of failed investment in real estate but I will advise those investing should be very careful not to fall victim of that. Because so many investment failure always results into break down of those that have invested.

 

[lelakil3]

A real estate firm bought about 7 hectares of land in a developing part of the city for housing unit development, due to lack of funds to fully developed the 7 hectares, they decided to develop it in 3 phases.
Now after more than 15 year they could only develop phase one, presently, encroachers have taken over the other part of the land and they are unable to chase them out.
They are now caught between the dilemma of selling the undeveloped part at a very bid down price or continue to deal with the encroachers until when they have money to develop further.
What would your advise be??

It will be hard for them to sell a land that are undeveloped many buyers will see first the status of the land if they got no problem on it and the buyers don't want to encounter encroachers as they want to buy a safe and sound.

 

[Rainlover207]

Sit down and go over the investment, checkout what made you failed. After you have done that structure ways to fight that challenge of failure the next time it comes. And do start with a small amount of money.

 

[Henrywrites]

A real estate firm bought about 7 hectares of land in a developing part of the city for housing unit development, due to lack of funds to fully developed the 7 hectares, they decided to develop it in 3 phases.
Now after more than 15 year they could only develop phase one, presently, encroachers have taken over the other part of the land and they are unable to chase them out.
They are now caught between the dilemma of selling the undeveloped part at a very bid down price or continue to deal with the encroachers until when they have money to develop further.
What would your advise be??

Getting a loan to develop that area while they start paying for it in installments is the only way to get the encroached people to leave. This will take time and energy and even going legal but the earlier this is done, the better it will be for everyone having a stake in that land.

 

[Kamon c4]

This same issue is currently being faced in Nigeria. Cattle grazers are the encroachers in this case. Without diverting from the basis of this thread, there’re some cases in which real estate projects ends up not being profitable. Oftentimes, investors settles for less prices than the market value. It’s most advisable to partner with other real estate companies.

 

[Xerryl]

this case, they need to do a very detailed analysis of what went wrong, so they can know whether to keep on holding the and it to sell it.
Settlers are really difficult to deal with, and they increase like cockroaches, very fast.

 

[Sanusi]

Once you figure out that your real estate investment is not working out, you sit yourself down and think of what is making you to fail pertaining to your real estate investment. so if the problem is based on partnership then you have to make partnership with other firm.

Post automatically merged: Jan 26, 2021

Once you figure out that your real estate investment is not working out, you sit yourself down and think of what is making you to fail pertaining to your real estate investment. so if the problem is based on partnership then you have to make partnership with other firm.

 

[Eodine]

Firstly, there is no way they would sell lesser than they bought it 15 years ago, land always appreciates but it is important to plan and have source of income in multiples before venturing to big business like that so as to prevent stories like this...

 

[Good-Person]

Profits and loss is a part of business. It does not matter if you invest in real estate or any other kind of business. It is important to note that whenever you start any business, you would need to keep the possibility of enduring loss in your mind. You have to let go of the past and take a fresh start. You should motivate yourself and this is how people deal with it.

 

[Dubai]

The best way to deal with failed investments is not ensure you have learn from that experience and to make sure you recover fully well from it.

 

[Chibson]

Even though I have not invested in real estate myself but I have worked with someone who is a real estate agent. When your investment in real estate fails, all you need to do is to go back to the drawing board and check what went wrong and of course make lot of adjustment.

 

[Ehizzy1]

The firm should have gotten a professional Land and town planner before Commencing on buying the lands and others ,because wasted money as such might be irrecoverable

 

[Richard92]

Most times real estate business do feel when the property is not in a good location and when this happened as a real estate owner what you have to do is to sell off those property and get property in a good location.