How To Make In Real Estate Business In Nigeria On the off chance that there is any business in Nigeria that is genuinely lucrative and to a great degree gainful, it must be Real Estate business in Nigeria. The vast majority of the main tycoon in Nigeria are land financial specialists. It is a cash spinner to the most elevated amount. Land is presently blasting in Nigeria and individuals are making millions in it. I need us to investigate the business and perceive how anybody may put resources into this division of the economy independent of the amount you have and still make genuine benefit.
One thing great about land business in Nigeria is that the venture opportunity is diverse to the point that there appear to be something for everybody. Any individual who wish to contribute can contribute whether he has thousands or billions of naira, you can even put without a dime in your pocket. Along these lines, let us perceive how it works.
This is the first article I am writing on real estate business on this website. So, I will try to highlight some of the best investment opportunities in the industry, then expand on the topics in the subsequent articles.
Before we proceed, we want to look at the profit potential in real estate business in Nigeria. I bought a plot of land in Ikorodu area of Lagos State in 2011 where I have wanted to develop for small hotel. I paid ₦500,000 for the land excluding some minor egunje to the boys.
In 2013, I changed my mind and decided to sell it, when I asked the estate agents how much property was going in that area, they told me the current price as at then is two million naira and that my own which is very close to the main road will go for between 2.5 to 3 million naira. If I had bought five plots that was offered to me for 2.5 million, I would have made ₦10,000,000 from that single transaction!
Just like that, 2 million to 2.5 million gain in less than two years for a green horn like me who was not in anyway into real estate investment. Then imagine what the professionals who knows the ins and outs in the business must be making. I know a petty medicine seller who is now a multi millionaire through estate investment he started few years ago with almost zero capital.
I also know how some of the millionaires in the industry started. Some of them started as small real estate agents in a kiosk, but today, they control the finest estates in Lagos, Abuja and other major cities in Nigeria.
Where Is The Real Estate Business And Investment Opportunity
Here are some of the areas you can invest and make your own money without tears. As you grow in the business, you can expand your portfolio or start big straight away. In this article, I will only deal with real estate categories that are peculiar to Nigeria, especially for beginner real estate entrepreneur.
1. Land Flipping – This means buying of land and quickly reselling it for profit. This is one of the smartest investment in the industry and requires no effort whatsoever. Just your money and knowledge and you are good to go. You will need substantial amount if you want to make hundreds of millions but you can start small by buying just one plot and grow to buying tens of plots and acres of lands and keep selling all year round.
2. Open Space Leasing – This works in a simple and unique way. Buy a property in a good location and lease it out for makeshift use. You can lease it to churches or business that wants to develop a makeshift outlet such as car wash and mechanics. They will be paying you monthly rantage while the property still appreciates for future sell. It is like borrowing money for someone and get paid double interest and still get your money back.
3. Real Estate Agency – This one is the simplest and easiest of them all. It is not investment per say but service rendering. How it works? Go round and look for properties to let and for sale, advertise your service and help secure clients for the property owners, you will be paid percentage as commission base on the amount the property is sold or rented. You can start with little or no money and if you are smart enough, you will grow to become a giant realtor.
4. Property Development – This is where the big guys in the industry are doing their stuffs. They acquire properties in nice locations, develop it into luxury apartments, commercial structures, etc and sell at a very high profit margin. If you spend N200 million to develop a property, be sure you are going to sell for N400million.
5. House/Office Rent – Build a house and put it up for rent, get paid all year for a life time. That is exactly how this work but there is much more to that than I just stated, watch out for detailed articles on this soon.
In the coming weeks, I will be publishing articles from our ongoing researches and advice from professional real estate investors and experts in the industry on various aspect of investments. Keep visiting regularly, you never can tell when any of those incisive juicy articles will be published.