Business Success Story:How I Made Sh 10 million in 2 years from buying and selling land in Nairobi
My name is Nathan and I live in Nairobi.
In 2010, my uncle came to the village and told me to accompany him to the city. I had just completed college and I was awaiting graduation which was slated for September the same year. I decided to heed to his request instead of staying idle.
As I settled at my uncle’s house, he is single, I found myself staying at home alone as he went to work in upper hill Nairobi. Luckily, a college mate was living next to us. This was the person who made me understand life in the city and also enabled me drop application letters in several offices.
In 2012, I secured a temporary job in a leading Insurance company in Kenya. My starting salary was Ksh 90,000 and the contract was to last for 2 years.
Since I pursued Actuarial Science in JKUAT I had a clue on how real estate works, I was also attached to real estate department in our firm. My work involved going to the construction sites where our firm was undertaking construction projects and also assisting in real estate investment valuations.
The work exposed me a lot about what happens in the real estate industry, where plots are cheap and how Insurance companies and real estate firms make extraordinary profits from ignorant Kenyans.
In June 2012, I managed to get several plots which were being sold at throw away prices in Kamulu.I had saved Ksh 100,000.So I decided to buy 2 plots, each at Ksh 50,000.Also in February 2013 I also managed to secure to plots at Kajiado, each was going for Ksh 150,000.
I had just forgotten about the plots when I heard a rumour that someone wants to put up a hotel where my plot is and that he wants to talk with the owner. I immediately placed a poster at my plot indicating that whoever intends to buy the plot should contact me.
One week later, someone called me while I was in the office. He explained to me that he is an investor who wants to set up a 3 star hotel on my land. I directed him to Nairobi and instructed him to meet me at anniversary towers.
The following morning we met and had lengthy discussion. He explained to me his intentions and how the land is strategic for business. The question that almost made me blunder was about the cost of the land.Since I bought the two plots at Ksh 300, 000,I was almost tempted to tell him Ksh1 million, which looked crazy money for me.But I asked him about his budget. The first time he refused to tell me,insisting that I am the one selling, so I know the value of the land.
When I told him that I am not interested to sell, he told me, ‘then let us make it Sh 10 m.I couldn’t believe I had become an instant millionaire. I said Okey.
That’s how the Ksh 300,000 changed my life.
I have come to appreciate that whatever little you have, invest it in real property (houses, land ),you will reap big.