Enterprise Hotel, a real estate investment company that offers regular Africans as low as N30k

Many people are looking for ways to make money work. This seems to be a growing trend. It is a widely accepted notion that investment plays an important role in improving living standards, regardless of where you live or what your demographic preferences are.

Enterprise hotel

More people are investing now than ever before. It is no longer the case that only the wealthy have multiple income options. Anyone can invest and make substantial profits.

Innovative thinking and technology solutions make compounding investment much more possible. Innovative minds are creating systems that seamlessly integrate a variety of investing activities.

The real estate industry is one sector that faces significant challenges. Real estate assets are not like other investments such as stocks. Ownership of them requires payment of all consideration.

Another option is to finance the property at very high-interest rates. This would mean that you are losing the investment opportunity. A report shows that the country’s mortgage interest rate is still high at 20-27%.

Real estate investment for a little less

Enterprise Hotel, an investment startup that offers Africans the chance to invest in commercial real property for as low as N30,000 ($52), is making it a more innovative way of investing in real estate.

Enterprise Hotel 1Uche Ajaere, Richard Halliday and Richard Halliday founded the company in 2019. Its goal is to diversify real-estate investing down to the smallest form and create a new way of property ownership.

Uche Ajaere is the Enterprise Hotel CEO and co-founder. He is also well-known for his role in the GIG Group. He was also involved in the operation of real estate divisions and kept an eye out for developments in Nigeria’s technology ecosystem.

Enterprise Hotel currently has locations in Lagos and Abuja, Benin, Port Harcourt, and Benin. The company plans to expand across the country. The company states that the goal is to have an Enterprise Hotel in all major cities on the planet.

This startup is breaking with the norm in real estate and offers its users the chance to purchase properties at minimal costs.

How it works

Enterprise Hotels offers different types of investments to its customers. The room sale is the first type of investment. This arrangement allows individuals to purchase a whole room.

Block sales are the second class of investment. Enterprise Hotel will divide a room into ten blocks so that people can purchase each block. Each block would be N2 million each if the room’s original asking price was N20 million.

Enterprise Hotel is the last type of investment. This allows you to divide the room into several thousand units. This category makes it easier for people of all income levels to buy real estate.

Sectoral challenges

Enterprise Hotel knows that creating an affordable real-estate investment plan is not easy.

Enterprise Hotel might have difficulty building in a sector that has few precedents. Although there are some businesses that offer fractional investment services in Nigeria, the majority of these are in financial services.

The establishment of Enterprise Hotel is at a time where fintech is more profitable and is experiencing significant growth. However, little attention is paid to the other industries.

Startups have tried to solve the problem of rent in Nigeria over the years. However, innovation has been limited to the real estate market.

This is because technology doesn’t solve all real estate problems. It facilitates processes at best. Real estate is not like other industries. It has a high barrier of entry.

Investors do not receive instant gratification on their investments. Investors may need to wait for up to 15 years before they see a return on their investments. Real estate is less popular than other businesses, so it’s not surprising that they receive less investment.

Particularly in the real estate industry, there are many questions to be asked. For example, people might ask, “How affordable is it for me to purchase this product?” How fast can I make my profit?

Why would anyone invest in real property when there are higher returns in other industries? Enterprise Hotel hopes to change that narrative by offering low entry costs and making it more affordable for Nigerians.

Investments that yield a timely return

Enterprise Hotel promises investors a return of two to four years on their investment. This is impressive considering that most real estate investments take between 15 and 20 years to repay their initial investment.

Investors can also profit from a range of opportunities offered by the company. Most people use hotel reservations as their main method of profiting. However, investors can also make a profit by the activities taking place in their rooms and the hotel’s services.

If a guest pays for dry cleaning or eats in the room, investors also get a cut. Investors can also sell their properties when they are ready to move on, but Enterprise Hotel would prefer a right-of-first-refusal for any property that they buy.

Generating revenue

The startup generates revenue in two ways currently. The first comes from room sales, while the second comes from investors paying a management fee.

Enterprise Hotel requires all investors to pay a management fee. This is used for ongoing management expenses, such as recruiting employees on behalf investors.

According to the company’s current business plan, it can offer real estate investments starting at 30,000 Naira ($60). For many Nigerians, this is still a significant sum.

Although it is tempting to invest small amounts, potential investors may be discouraged by the low profits. The path to success for a company might be to supply a larger market with more money.

Attracting other investors

Enterprise Hotel has managed to survive without institutional investors. The company claims it is open to funding but is more focused on gaining significant momentum before approaching investors.

“We don’t just sell apps like other startups. When we talk to investors in the coming months, we want to ensure that we speak based on value. We will show them the first hotel we built, as well as the investors who have invested in them. We can then start to talk with investors. 

The company is making its investments attractive. Investors can use the property as collateral to apply for loans because they already own it. This solves indirectly the problem of loan collection.

Lending institutions in Nigeria are not allowed to lend money to people who aren’t part of their high-net worth group. They only accept collateral. Enterprise Hotel offers a solution to this problem.

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