‘You don’t need to be reach to start investing in real estate’, the meaning of this investment catchphrase can be interpreted well especially by those already in Real Estate business.
Nonetheless, ‘How can you start investing in real estate with a small cash? ’ If you have a desire to invest, nothing shouldn’t hold back your investment nerves. In fact lack of capital should be a spur to land entrepreneurship.
Without forgetting that real estate doesn’t wait for any investor to get rich to join, the properties normally keep on escalating. You could be timed out by the time you think you are ready.
The only fortunate option is to start investing now with the little coins you can harvest. It is the safest investment on earth thus you should bet your last coin on it.
Will Rodgers-an American vaudeville- advises, Don’t wait to buy land, buy land and wait.
To answer the begging question above, we look into 10 available means you can source your funds for a land investment in Kenya.
- Exploit Peer-to-peer Lending Systems
Peer-to-peer lending is a fairly new source of capital for SMEs. Also dubbed as crowd-lending, this lending systems normally help in bringing savers and borrowers together, thus shunning the cause for the need for a bank in between.
Investors who are willing to save their monies for a good interest rate lend it directly to the borrowers. As there is no bank involved in between, you (the borrower) can get a cheap loan.
- Check out an example of such system on Zidisha Peer To Peer Lending Network
Pros
- Managed and used wisely, peer-to-peer lending can prove to be a great source of cheap capital for investment in Kenya.
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SACCOS and Microfinance Institutions
Such institutions come in handy once you have been saving cash with them for an appropriate period.
Saccos have become a household name for most investment ideas in the Kenyan business market which has proved worthwhile.
Such Saccos Include
- Metropolitan Teachers Sacco
- Stima Sacco
- Afya Scco
- Harambee Sacco
- Mwalimu Sacco
Pros
- They have simple rules and regulations as compared to the banks
- Lower interests rates
- Saccos are good for loans geared towards investment
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Banking on Banks To Invest
Banks can come in handy when you are doing an investment, Banks are so professional and formal in matters of banking and loaning funds for investment. You just need to visit your nearest bank branch and learn more about the guides.
Some of popular Kenya commercial banks offering loans and grants
- KCB
- Equity Bank
- Bank of Baroda
- Cooperative Bank
- National Bank
Kenyan banks also run offers for ideas worth investing. The best thing for an entrepreneur is to be on the lookout.
Pros
- Banks are good for startup investments
- They come in handy especially for a land investment and homes
- They are easily accessible to members
- Ideal for Chamas and Group savings investment
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Foundations
Most Kenyan Foundations provide funds for entrepreneurs inform of grants or loans which have a relaxed interest and time frame.
- Such foundations include
- Coca Cola,
- Chandaria Foundation,
- Ford Foundation
- African Leadership Foundations among others
Pros
- Low or no interest charged
- Some of the foundations provide investment trainings
- Government Capital
The current government has a provision of several sources of capital for its entrepreneurial citizens. This capital is provided in form of grants, loans and development funds.
The following are the official provisions of government funds on national and county level
- Uwezo Fund
- Women Enterprise Fund
- Kenya Industrial Estates
- Agriculture Finance Corporation
- ICDC
Pros
- Government funds are lenient on time and interests
It is better done than said here , the buck starts with you. The only advantage you have is the presence of several financial institutions mentioned above and even more others not mentioned that are willing to listen to you.
