Hey guys

I am intrested in venturing into one of this business' and would like advice on which to engage in , can raise a capital of 3-4 million

1st : I am think of purchasing an Isuzu fvz with which I can supply sand from ukambani to construction site was informed by a friend that a truck of sand can fetch 50k plus per trip and the truck can make 2 trips a day My question is with the truck going for 10million is it viable to engage in the business,will my intial capital be adequate to secure the truck,also would like to know the challenges of that nature of business and whether Isuzu fvz is the best truck for that job?

2nd: taking note of the boom in the construction industry there is a group that has been sidelined the very low income earners who make the biggest population of the entire workforce. With this in mind thinking of leasing land for a period of 10 years from land owners to do very low cost housing in upcoming towns e.g kikuyu,wangige e.t.c when I get the land I can be able to built mabati houses with common toilet and bathroom, mabati houses will be 10*12 just room enough for a bed and a seat or two. The actual cost of doing one house is 50k so with 4million one can do 80 houses, so if u do the math with a house going for a monthly rent of Ksh.2500 one stands to make Ksh. 200k.

So the question is the first business the profit is superb but very risky, the second profit average with big potential of growth but average profit. Which would you go for??

50K per year for 100*100 piece of plot.

@frm2011 hv been asking around about both business and I always finds people who are for and other against , bottom line any business is a risk you can excel where others hv failed and fail where others hv succeeded.

btw do we have any wazuan who has done this biz of fvz or fsr to enlighten us on tips of this mchanga biz

@JimJim, a have a friend with a mchanga lorry and he tells me it's the worst investment decision he ever made. If i were you, i would go for the houses. Mambo ya lorries sijui axle load limits, Kanju bans, police every day can be too much, uless umemeza roho ya simba as the member says

take that money, buy a plot near an upcoming university for like 1m. put up single rooms that can accomodate two double decker beds. I know someone who bought a plot in lurambi, Kakamega at 1.2m, about 5km from MMUST, put up 20 single permanent rooms. so total no of bed space is 80*10,000 per semester (every 3 months). do the maths

@mwenza hv a guy who has so far done 5 at a cost of 200k. Concrete floor + electricity

I think idea 2 is easier to get into than the mchanga idea since I have also contemplated the same.

One thing though; do not do your projections based on 100% occupancy rate, lower that number.

Also you need to be aware that low end housing has some major issues that come with it such as rent defaulters and guys who run away usiku wa manane.. and those who will break everything as they go.

Do some more research then go with your gut

not sure about the entire ruiru but that area he is building has no sewer line and its growing fast the owner of the next plot same size is putting up 1 bedroom self contained 4 houses per floor also going for five floors.

PS: There used to be a guy here called Mukiha/Muhika and he used to say if you have a market and you have supply the rest is history. Stop focussing on supplying sand if you dont really know who is buying what from when and at how much. Also don't focus on low cost rentals if you dont know your target market.

There was also another idiot called The real massey who used to con people on registering companies and even started a fake company called ESKAY company I wonder wha happened to that conman?