OVERVIEW
With a population exceeding 350 million and an annual influx of over 1 million immigrants from various corners of the globe, the United States grapples with a significant shortage of 7.3 million affordable rental homes. This housing gap underscores the potential of real estate investment as a reliable source of lifelong income in this economy. Investors who partners with us stand to capitalize on strategic opportunities within the U.S. economy, leveraging these dynamics to secure profitable returns.
PROJECT NEED
The African Chamber of Commerce's decision to venture into real estate investment stems from its vision to capitalize on significant strategic opportunities, both in the short and long term. Drawing from our past experiences, substantial funds have been allocated to hotels and specialized groups to accommodate our international events. Looking ahead to our chamber's year-round events starting in 2025, including international conferences and the Global Institute of Entrepreneurship and Innovation, we anticipate hosting thousands of delegates from around the world. These delegates, particularly those attending our institute, will require accommodations for a minimum of one month to engage in practical experiences, gain global exposure, and obtain certifications in New Jersey, USA.
GOAL OF THE INVESTMENT
The investment project aims to secure short-term funding from investors for 36 months (3 years), earmarked for the acquisition of rental properties. Return on investment (ROI) will be distributed annually over the three years. Upon reaching the end of the tenure, the total invested amount will be repaid to investors in full, with the option for investors to extend their investment if they choose to do so.
LOCATION
Phase one of this project is set to commence in New Jersey in the year 2024. As the privileged state to host the 2026 FIFA World Cup final, we are positioned uniquely. Phase two of the housing project will entail expansion into other strategically selected states and cities.
TARGET MARKET
Real estate investment has historically served as a key pillar of financial prosperity, with nearly 90% of millionaires citing real estate holdings as a contributing factor to their wealth. Beyond its wealth-building potential, real estate offers numerous tax advantages, enabling investors to potentially reduce their overall tax burden. Moreover, real estate investments provide avenue for generating income while allowing investors to retain a significant portion of their earnings.
UNIQUE SELLING POINT
The subsequent phase and future investment strategy will involve expanding into the ten major U.S. cities chosen to host the 2026 FIFA World Cup and the celebrations commemorating America's 250 years.
Additional U.S. cities set to host the 2026 FIFA World Cup include Atlanta, Boston, Dallas, Houston, Kansas City, Los Angeles, Miami, New Jersey, Philadelphia, San Francisco, and Seattle.
Each of these cities presents significant and distinctive housing and short-term rental demands, along with abundant opportunities for entrepreneurs to establish their businesses.
MARKET HOUSING DEMAND
The demand for housing is substantial not only in New Jersey but also in its neighboring states. Given the exorbitant cost of living in New York City, a majority of individuals have opted to relocate to nearby areas such as New Jersey. For instance, more than 500,000 people commute daily between New Jersey and New York for work purposes.
10 MILLION NAIRA. 20% ROI P.A. FOR 3 YEARS:
7.5 MILLION NAIRA. 15% ROI P.A. FOR 3 YEARS:
5 MILLION NAIRA. 12% ROI P.A. FOR 3 YEARS:
2.5 MILLION NAIRA. 10% ROI P.A. FOR 3 YEARS:
Following the initial 36 months, investors have the option to extend their investment, potentially yielding a higher return on investment compared to new investors. This investment opportunity can persist throughout your lifetime and can be transferred to your children, offering the potential for capital appreciation and a steady stream of rental income if desired.
Furthermore, all categories of potential investors are eligible to attend our maiden and subsequent bi-annual investors/stakeholder summits with free meals for all categories of investors. With the exception of categories; A and B, who will enjoy free accommodation with their meals; during these meetings.
The FIFA 2026 World Cup marks a significant milestone as the tournament expands to accommodate 48 teams, a notable increase of 16 teams from the previous seven editions. Additionally, this tournament marks the debut of 8 African teams representing the continent. With millions of first-time visitors expected to arrive in the United States of America, it promises to be an unprecedented event.
America's 250th anniversary, occurring on July 4, 2026, will be a momentous occasion as our nation commemorates the signing of the Declaration of Independence. Simultaneously, two monumental events will take place, presenting a vast array of business opportunities for investors and entrepreneurs with vision and foresight.
RENTAL PROJECTIONS
The nightly rental rate will be determined by factors such as the property's location and type. On platforms like Airbnb, the average starting price for rentals is approximately $80 per night. However, variations in rates may occur based on specific features, amenities, and demand for accommodations in different areas
FINANCIAL PROJECTIONS
A minimum down payment of 30% is required for purchase of a house, with the cost varying to suit the area and economies / location of state in the real estate value chain. Providing a substantial down payment can be precautionarily advantageous as it enables the buyer to negotiate for a lower interest rate on the mortgage as well recieve preferential accommodation opportunities. The mortgage will be repaid monthly over 30 years, spreading out the cost of homeownership over an extended timeframe. This structure allows for more manageable monthly payments while building equity in the property over the long term.
The average price range for purchasing a house typically falls between $50,000 and $100,000 or higher, depending on the specific type of property being considered. Factors influencing the cost include the size, location, condition, and amenities of the house. Additionally, market conditions and regional variations may also impact the overall price range.
OUR STRATEGY
We begin by acquiring properties, followed by renovating and outfitting them with necessary amenities and furnishings. Subsequently, we offer these properties for short-term rentals on platforms like Airbnb, catering to both daily and monthly stays, as well as extended stays for guests seeking longer-term accommodations. This comprehensive approach ensures that our properties are attractively presented and well-equipped to meet the needs of a diverse range of guests.
We require various types of houses to fulfill our needs. The total expenditure will vary depending on the specific type of house selected. Each type of house serves different purposes and comes with its own set of features and costs. Therefore, our budget and spending will be tailored according to the type of house chosen to meet our requirements.
OPERATIONAL APPROACH
Our chamber's committed leadership team will be responsible for managing the daily operations of the App and rental properties. Meanwhile, we will delegate tasks such as cleaning, repairs, catering, and transportation to experienced third-party service providers. This allows us to focus on our core responsibilities while ensuring that experts in their respective fields efficiently handle all aspects of our operations.
REVENUE FORECASTS
The net return on investment (ROI) from short-term rentals (STR) significantly outperforms that of long-term rentals (LTR). Specifically, the net ROI for STR stands at 9.1%, while LTR yields a net ROI of 3.5%. This difference translates to a substantial advantage for STR, surpassing the long-term rental value by 5.6%. Investing in short-term rentals offers a considerably higher return compared to the traditional long-term rental model, making it a more lucrative option for investors seeking robust returns on their investments.
INVESTMENT PROJECTED ROI
The return on investment (ROI) is contingent upon the initial investment amount, with the highest potential return capped at 20% annually. This means that investors can expect a maximum annual return of 20% based on the amount they have initially invested. This upper limit ensures clarity and transparency regarding the potential returns that investors can anticipate from their investment in the project.
Closing costs for each house will vary, contingent upon the specific type of property being purchased. These costs typically encompass expenses associated with legal services, mortgage processing, accounting fees, and real estate agent commissions. The exact amount of closing costs will depend on factors such as the size, location, and complexity of the transaction. By including these costs in the overall financial plan, we ensure transparency and clarity for all parties involved in the property acquisition process.
RISK ANALYSIS
Elevated Interest Rate: Presently, the interest rate for home mortgages hovers around 5.7%.
Purchasing a house entails a multitude of expenses, some of which are influenced by factors beyond your direct influence. For instance, your monthly mortgage payments are determined not only by the cost of the home but also by your down payment amount and your eligibility for favorable mortgage rates. These variables collectively impact the overall affordability and financial commitments associated with homeownership.
CONCLUSION
Investors across all categories are invited to explore personalized partnership opportunities with the African Chamber of Commerce LLC in New Jersey, USA, enabling them to access exclusive avenues within the diverse landscape of the US economy. Whether you're a seasoned investor or new to the market, we offer tailored collaboration options catering to your interests and objectives. By forging deeper connections with us, investors can unlock bespoke opportunities that align with their financial goals and aspirations, fostering mutual growth and success within the vibrant economic ecosystem of the United States.