So recently, I have been looking into this side-hustle a lot and I was wondering if anyone on here had some experience with this. I got introduced to this by TheProfessional, kinda ironic. since then I have been doing deep research and stuff. Learning about all the different things you can do. my biggest obstacle is interest, does anyone know how to get around this? Usury is so ingrained in western society its nearly impossible to avoid, which is a bad thing since its one of the biggest sins in islam. So pls share experiences and tips.
Does anyone here own a rental property? or know anyone in the somali community who does.
- Thread starter CABDULWALI XASAN.
- Start date
SaMale
The only Somali in Arabia
My great aunt is into this, too bad she's the most hated somali in my family to learn from her. She has like a couple of houses in burco.
My family owns some land in Somalia. Avoid interest, its not worth the sin. Either buy something cheap back home and build some cheap but small well constructed apartments and settle bunch of folks. I think that could net you 200-300 dollars. My grandmother does it
interesting
thats the problem youre not going to make anything. Right now theres nothing stopping me from building an apartment somewhere in nairobi. I need to way to finance without interest reliably. Its hard,
The most profitable type of rental property back home is commercial real estate thats why you see all these "business centers" and "malls" being created. This is because a small house rents for $300 which takes up a decent amount of space while a bakhaar/store front can rent out for $400-600 plus depending on the area. Opening these type of commercial units is only worth it in Xamar or Hargeisa IMO.
Also Africa is not like the west where anyone with a good salary or credit can become a real estate investor via loans from the bank. In Somalia at least your ONLY competitive advantage is having cold hard cash that's why companies like dahabshiil and Hormuud have their fingers in every pie/sector possible. You have zero chance of finding a way to finance a project with interest let alone without interest. It's either you have all the cash up front and you get lucrative returns you cant get with real estate in the west or you simply can't enter the game.
Also Africa is not like the west where anyone with a good salary or credit can become a real estate investor via loans from the bank. In Somalia at least your ONLY competitive advantage is having cold hard cash that's why companies like dahabshiil and Hormuud have their fingers in every pie/sector possible. You have zero chance of finding a way to finance a project with interest let alone without interest. It's either you have all the cash up front and you get lucrative returns you cant get with real estate in the west or you simply can't enter the game.
Sxb if you thinking about getting a mortgage. Please dont. It may be very appealing but you are waging a war with Allah if you take interest. Allah is Al Razzaq, so if you want something, why be at war with the one who gives?
My younger brother is into this sort of stuff, for a time, he was hellbent on explaining it to me, and I just kept zoning out... It was really dry stuff
From what I remember, he essentially invests in the development of new properties in Egypt, by putting down a certain percentage of the properties total. Once the properties are built, they of course cant go on the market, unless he (the investor) reneges on his end of the agreement.
Because these properties dont actually exists and Egypt is looking for potential investors for its housing development projects, the market evaluation for these houses are kept low.
The initial investment was two rounds of ~£10K, all in all, a up front cost of ~£25K (after legal fees, taxes, lawyers and so on) for a property.
Why Egypt? Some of our close family live there, £/$ goes further there, and unlike western Europe, there was no interest involved.
This was maybe two years ago though, maybe even before the Russia/NATO war.
Other than contributing to it monthly, I did not pay much attention to it.
If you are interested I could ask my brother and aunt some more about it.
From what I remember, he essentially invests in the development of new properties in Egypt, by putting down a certain percentage of the properties total. Once the properties are built, they of course cant go on the market, unless he (the investor) reneges on his end of the agreement.
Because these properties dont actually exists and Egypt is looking for potential investors for its housing development projects, the market evaluation for these houses are kept low.
The initial investment was two rounds of ~£10K, all in all, a up front cost of ~£25K (after legal fees, taxes, lawyers and so on) for a property.
Why Egypt? Some of our close family live there, £/$ goes further there, and unlike western Europe, there was no interest involved.
This was maybe two years ago though, maybe even before the Russia/NATO war.
Other than contributing to it monthly, I did not pay much attention to it.
If you are interested I could ask my brother and aunt some more about it.
True, but apartments are an option aswell. I definitely see what you're talking about with commercial realestate. Its probably going to be more consistent, you can probably charge more. And if you do it in all cash thats going to be pure profit aswell. I dont really plan on investing in somalia as my first thing anyways to unfamiliar with it. But right now is a good time to invest there since everything.. is relatively cheap... sort of, so it will be on my radar.
In americ commercial real estate isnt as good as before all around my city your gonna see tons of commercial blocks with stuff up for lease, i.e its too oversaturated. Maybe if it was more orientated to somalis it could work but your gonna need a lot of money. Thats why the arab guy has a choke hold with karmel and 24, he got in super early in with real estate.
Also im kinda confused on your second paragraph, its hard to believe that dahabshill and hormuud are not financing. Theres no way they have achieved monopoly status with just cash, they at least have investors. Thats true somalia is not gonna be making the same amount of money as a you would in the west. Thats why I didnt ask about somalia, Real estate in somalia is absolutely messed up. I made a post a couple weeks ago talking about the Lot scam for diaspora. People are paying 3000 dollars a tenth of an acre in the outskirts of the city.
It would be hard to finance it would hard without interest aswell since the lender needs to know what youre doing has to be a safe way to make money.
Thats why I was thinking about rental properties here in the united states, particularly section 8
I think you misread bro, I said no usury, no interest. I know very well the dangers of usury, not only on a personal level but the absolute havoc it has on society. Usury is the driving force for every single problem in the modern world today. Every single problem is driven by it. I have done my research I dont want to engage with it even. But america and interest are so interconnected, it would be hard to be anything more then a wagie without encountering it. So thats why I'm thinking, how can I progress financially without engaging with interest.
The prices of goods and stuff are all inflated in the west compared to the other countries. Its not because its higher quality or we make more money realtive to the good. Its because financing + interest exists. they want to you to buy expensive things and pay over the rest of your life while they take the interest. Its all eventually going to collapse on its self,
So are these government or private projects, and by invest do you mean by investing in the construction of the house and then taking your % back when the house is sold. Or a forever system in which you get a % of the rent/payment back from the future property owner.
Or are you buying a future house for 25K to sell later on, could you clarify this. Also how do you keep your money safe if the house isnt even built yet, kinda new to this
@CABDULWALI XASAN.
This can of course, change if the payment for the built property ceases, that is the total evaluated value of the property.
My older brother was very dubious of it and insisted on doing things his way, consulting with a local firm, making sure lawyers were present and overseeing things etc etc.
I personally did not believe in it but regareded it a manageable risk. ~25K / 3 unmarried young men, then with the actual property owner, my young brother, taking over future payments.
I am certain it was a private company, that was partly owned by the Egyptian government. The upfront cost was mostly how they pool funds to get the project of the ground, I think.
No, it is an agreement that the investor has secured eventual ownership of the property (title, deed holder) and upon completing the upfront payment rounds, becomes the legal owner.
This can of course, change if the payment for the built property ceases, that is the total evaluated value of the property.
My Aunts husband, an Egyptian, has done this a few times and could vouch for it.
My older brother was very dubious of it and insisted on doing things his way, consulting with a local firm, making sure lawyers were present and overseeing things etc etc.
I personally did not believe in it but regareded it a manageable risk. ~25K / 3 unmarried young men, then with the actual property owner, my young brother, taking over future payments.
Ah okay I assumed you were talking about Kenya/Somalia also Dahabshiil is basically a bank and Hormuud owns salaam bank they probably had investors early on but as of now they simply use customer deposits to Invest in various projects in somalia like any other bank in the west would do.
that is very concerning, but to be expected. Im anti fractional reserve banking. ive already said this before but these monopolistic companies are only setting up the future looting of a successful somalia.
I suggest try searching for islamic banks and send them your business pitch and collateral,
They will either buy the property for you then increase the price a little and you will pay them back or they'll give you interest free- loan for equity in your business.
why would I involve them in my business though? I want to become a top-tier slumlord making 10,000 or 100,000 a month off rental properties. ITs litteraly a get rich quick while making your way into the 1% wlhi i dont know why its not more popular but I think I found a glitch in the system
Who in their right mind is buying a 2 bedroom apartment in kenya for 50grand? I could build an entire apartment complex for the type of money in kenya. Ive researched, well at least half an apartment building. But still ridiculous prices, im better off investing in the united states if the numbers are like that.
5000 down on a 200k house, maximize the rent prolly 2.5k and you can take home around 700 dollars in pure profit. Section 8 Real estate investing is actually broken.
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