2 ND NIGERIA HOUSING FINANCE CONFERENCE & AFFORDBLE HOUSING FAIR - PowerPoint PPT Presentation

2 ND NIGERIA HOUSING FINANCE CONFERENCE & AFFORDBLE HOUSING FAIR 218 DAVID NDEGWA, C.E.O PROPERTY DYNAMICS, KENYA

1. SOCIAL CAPITAL Ø “Few who work together can achieve more than many who strive alone” Ø Social Capital is a form of economic and cultural capital in which social networks are central, transactions are marked by reciprocity, trust, and cooperation, and market agents produce goods and services not “ mainly for profit, but for a common good Ø Social capital has been used to explain the improved performance of diverse groups, the growth of entrepreneurial firms, hands-on managerial by all the developers, enhanced supply chain relations, value derived from strategic alliances, and communities wellbeing Ø This is essentially the reason why the Sacco's were started, to help each member with the collective money raised

Conti.. Social Capital . Ø A good example of Social Capital is Member Member “Esusu” which is mobile app that helps Member people create and manage Rotational Savings Clubs with their friends and family members. A Rotational Savings Club is a Member Member group of individuals who save and borrow together in a form of peer-to-peer banking. SACCO Group members contribute funds into a pool on a regular basis, and then take turns Member withdrawing funds from the pool Member Ø Social Capital is a good alternative to Bank Debt and Saccos and Cooperatives around Member the world have saved more than banks can Member claim to have. Member Ø In Kenya alone, Saccos have saved over $ 10,000,000 (10 million USD)

2. ACRES OF DIAMONDS Long ago, an old farmer heard that other farmers were making millions by discovering diamond on their land…….

He sold his barren land and spent the rest of his life wandering the African continent searching, unsuccessfully for the gleaming gems that brought such high prices on the markets of the world. Finally, worn out and in a fit of despondency, he threw himself into a river and drowned………..

Years later, the farmer who had bought the old man’s land saw a shimmering stone in the river. The land was found to have the largest deposits of diamonds ever recorded…. Had the old man just looked for the diamonds in his land, he would have made the millions himself…….

3. UTILIZING SOCIAL CAPITAL TO PROPERGATE AFFORDABLE HOUSING UNDERSTANDING REAL ESTATE RISKS ◇ FINANCE Assist Saccos/Housing Societies acquire finance for on going or future projects. We also help structure a finance model of ”Other Peoples' Money”, where a Housing Societies can capitalize on available resource of members who already trust This is through ‘Social Capital’ ◇ PRODUCT- Design and location of the project. Involves managing the process from conception to implementation stage of a project owned by a Housing Society. Additionally, we also have an option of identifying projects that meet the Housing needs from other reputable developers and take them up for onward sale to the Housing Society’s members through Bulk purchase negotiations with the developers.

Cont.. Understanding the risks of real estate… ◇ MARKET RISK With a ready market for their projects within the membership, we help Housing Societies by capacity building through hiring experienced sales team to sell to the members, whom we train and supervise jointly with the Housing Society’s Management Team. ◇ PRICING RISK We ensure that the projects are well priced to attract buyers especially the members of the Sacco/Housing Society, keeping in mind that a Society’s core mandate is to ensure their members get the best value for their investments and at the same time ensure that the Investment gives them reasonable returns

Understanding the risks of real estate….. ◇ LEGAL W e ensure that the project is legally sound by making sure that it is represented by a credible and experienced legal company. This is done by vetting and appointing a company that will process and issue out all legal documentation in time and in the proper fashion as well as conduct due diligence ◇ REPUTATION W e make sure that the project does not suffer an image problem by ensuring the partners involved are credible, the project’s brand is free from any scandal/ disrepute and that the project does not stall for whatever reason

4. CONCLUSION ◇ Nigeria can do it, Kenya can do it, Ghana can do it, AFRICA can do it, we just have to stop begging, search our acres of land and we will discover the diamond THANK YOU