EP #12 | Real Estate ROI Secrets From $Million Developer
Building Wealth Through Strategic Real Estate Investment: Lessons from a 29-Year Industry Veteran
Real estate investment continues to be one of the most reliable paths to long-term wealth building, but success requires more than just buying property. In this comprehensive guide, we explore proven strategies from Femi Rogers, CEO of Roston Group, who has built a successful real estate empire spanning 29 years across the US and Nigeria. From his humble beginnings working alongside his mother on construction sites to leading custom home construction projects internationally, Rogers shares the systems and strategies that have driven his success in property development.
The Foundation: Early Lessons in Real Estate Investment
Learning from Family Legacy
Femi Rogers' journey into real estate investment began at age 12, working alongside his mother who developed properties while maintaining her banking career. This early exposure taught him fundamental principles that still guide his investment strategy today.
"She said to me once that as long as you are involved in one project, you have less cash flow to spend on frivolous things. And that's one reason why she's always building one house after the other."
His mother's approach of reinvesting profits into new projects rather than lifestyle expenses became a cornerstone of Rogers' wealth-building philosophy. This strategy of continuous reinvestment has proven crucial for long-term real estate success.
The Power of Hands-On Experience
Before becoming a developer, Rogers worked as a contractor, gaining expertise in:
Cabinet making and installation
Contemporary handrail installation
Light fitting and electrical work
Building materials sales
This comprehensive understanding of construction processes gives him a significant advantage in project management and cost control, essential skills for maximizing real estate investment returns.
Why Real Estate Remains the Premier Wealth-Building Vehicle
Control and Tangibility
Rogers emphasizes that real estate investment offers something other investment vehicles cannot: complete control over your asset.
"In real estate, you actually control the investment, you own it, you have bragging rights that you can walk it, you know, it's physical and all these matters."
This control allows investors to:
Make improvements that directly increase value
Manage cash flow through rental income
Leverage the property for additional investments
Build equity through appreciation and loan paydown
Wealth Preservation Through Real Estate
Unlike stocks or cryptocurrency, real estate provides a physical asset that serves as a hedge against inflation and economic uncertainty. Rogers notes that his mother's wealth was primarily stored in the real estate she owned, demonstrating the asset class's ability to preserve and grow wealth over decades.
Maximizing ROI: The Two-Pronged Approach
Strategy 1: Increase Property Value
Rogers identifies several key areas where strategic improvements can significantly boost property values:
Layout and Design Excellence
Prioritize room sizes and flow over expensive finishes
Create seamless transitions between spaces
Focus on high-ceiling designs and open floor plans
Strategic Finish Upgrades
Concentrate premium finishes in master bathrooms and kitchens
Select fixtures that provide maximum visual impact for the investment
Maintain consistency with neighborhood standards
Strategy 2: Systematic Cost Reduction
Cost control requires systematic approaches rather than corner-cutting:
Subcontractor Management
Develop relationships with multiple tiers of subcontractors
Match subcontractor quality and cost to project requirements
Maintain consistent quality standards across projects
Material Sourcing and Procurement
Negotiate volume discounts through scaled operations
Source materials strategically to avoid cost overruns
Maintain quality standards while optimizing costs
Understanding Your Market: Investor vs. Homeowner Buyers
Emotional Buyers (Homeowners)
Homeowner buyers focus on:
Aesthetic appeal and finishing quality
Lifestyle features and comfort
Emotional connection to the property
Premium finishes like granite countertops and high-end fixtures
Analytical Buyers (Investors)
Investment buyers prioritize:
Cash flow potential and rental income
Return on investment calculations
Property appreciation prospects
Maintenance and operational costs
"Most investors when they call you, they're looking at how much do I get in rent, how much am I buying it for, how much discount can I get?"
Understanding your target buyer allows you to allocate resources appropriately and maximize both sale price and profit margins.
The Systems Approach: Scaling Through Standardization
Spec Home Strategy
Rogers has built his business around developing spec homes, standardized properties built without a specific buyer. This approach offers several advantages:
Reduced Risk Through Repetition
Minimize errors through repeated execution
Refine processes with each project
Develop expertise in specific property types
Economies of Scale
Negotiate better pricing through volume purchases
Streamline construction processes
Reduce per-unit costs through standardization
Quality Improvement Over Time
Continuously refine finishing and design elements
Learn from each project to improve the next
Build reputation through consistent quality
Custom vs. Spec Development
While custom homes might offer higher individual project returns, Rogers advocates for spec development due to:
Predictable timelines and costs
Ability to scale operations
Reduced client management requirements
Consistent profit margins across projects
Market Timing and Investment Strategy
Buying in Buyer's Markets
Rogers emphasizes that current market conditions (as of the interview) present excellent opportunities for buyers:
Advantages of Buyer's Markets:
Developers willing to reduce prices by $50,000-$60,000
Increased negotiating power for buyers
Access to incentives and concessions
Opportunity to secure properties below peak pricing
Interest Rate Strategy: Even with higher interest rates, buying during market downturns can be advantageous because:
Purchase prices are significantly lower
Rates can be refinanced when they decline
Monthly payment savings from lower purchase prices often exceed interest rate costs
Preparing for Market Cycles
"I spend a lot of my time getting ready for the good time. There is never a downtime for us once the market goes down."
Successful real estate investors prepare for market cycles by:
Continuing to build and develop during slow periods
Researching new markets and opportunities
Strengthening business systems and processes
Maintaining cash reserves for opportunities
Key Takeaways for Real Estate Investors
1. Embrace Market Cycles as Opportunities
Don't let market conditions paralyze your investment strategy. Use slower markets to:
Negotiate better purchase prices
Secure better terms with contractors and suppliers
Prepare for the next market upswing
2. Focus on Systems Over Individual Deals
Building scalable systems creates more wealth than pursuing high-margin individual projects. Systematic approaches enable:
Consistent quality across projects
Predictable profit margins
Ability to scale operations effectively
3. Understand Your Target Market
Success requires knowing whether you're building for investors or homeowners. This knowledge drives decisions about:
Finish quality and selection
Pricing strategies
Marketing approaches
Property features and amenities
Building Long-Term Wealth Through Real Estate
Real estate investment success isn't about timing the market perfectly or finding the one perfect deal. Instead, it's about developing systems, understanding your market, and maintaining a long-term perspective on wealth building.
As Rogers demonstrates through his 29-year career, consistent application of proven strategies, combined with continuous learning and adaptation, creates sustainable wealth through real estate investment.
Resources and Next Steps
Ready to implement these real estate investment strategies? Consider these next steps:
Research spec home opportunities in your target markets
Develop relationships with reliable contractors and subcontractors
Create systems for evaluating and comparing investment opportunities
Build a network of industry professionals including architects, contractors, and real estate agents
Want to learn more about real estate investment strategies? Listen to the full Build Shefa podcast episode featuring Femi Rogers for additional insights and detailed examples. Subscribe to Build Shefa wherever you get your podcasts, and don't forget to leave a comment below sharing your own real estate investment experiences.
Connect with Femi Rogers: Visit www.femirogers.com to learn more about Roston Group's custom home construction services and development projects.
Have questions about real estate investment strategies? Leave a comment below and join the conversation about building wealth through property investment.
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