The real estate industry is the fifth-largest contributor to the Nigerian economy and a potential goldmine for investors. The World Bank estimated that Nigeria’s housing deficit stood at 17m units as of 2013. The world bank also forecasted that by 2050 the population of the economic centre of Africa which is Lagos, Nigeria would double and this would give rise to the demand for housing by some 700,000 units per annum.
What Is Real Estate?
Real estate is the house, land, houses, above-ground rights, and below-ground rights. The word fixed property means actual or physical property.
Why You Should Engage in Real Estate.
Are you seeking a very stable business then you Real Estate is the best option for you? Here are some very few reasons why you should start a real estate business.
1. The real estate market is forever.
As long as man lives and his offspring remains on earth, real estate will never die. Housing would forever be a problem and there is never a complete solution so therefore a business is always created around it.
Despite recessions, the value of real estate usually goes up. The property will still be worth much more years from now than the investors paid today. If you doubt it, ask your parents How much they bought or developed their houses years ago and ask an estate valuer how much that same house is in the present day.
2. Cash flow advantage.
Are you seeking constant cash flow from real estate then you should dive into property rental and leasing, that way you turn your asset into oil of cash? Cash flow from real estate is very predictable and far more stable than most other businesses. This is great for entrepreneurs who are enduring the ups and downs of startup life.
3. Full control.
If there is any business that is sustainable and has long term control then it is real estate. Choosing an immovable property allows you to fully control your success or failure. If you want to make a better deal, you’ll have to hustle to find it.
How To Start Your Own Real Estate Business and Make Money
Starting a real estate development company is not as difficult as people usually think. This post would guide you effectively in kick-starting your journey into a real state. The first step to starting your real estate developing company is.
1. Choose a Real Estate Business Niche.
Real estate business niche is the act of operating with a particular group of home buyers or sellers that have a distinct need due to their prevailing conditions.
There are so many ways to make money in real estate, just the difference between one from the other lies in the startup expenses.
One of the major reasons why I love real estate is that there are so many avenues opened wide to investors with little or no cash. For better understanding, I am going to be listing some very few real estate opportunities to get started with even for the big and small spenders.
Real estate is a very wide industry and therefore it is heavily branched, in this section, I am going to be going deeper into possible ways to start making money with real estate.
1. Property Development.
Real estate development, or construction of a property, is a business activity that involves activities ranging from renovating and re-leasing existing buildings to buying raw land and selling developed land or parcels to others.
Real estate developers are the individuals and companies who manage all of these operations, transforming ideas from paper to real estate.
Real estate development is different from construction, though the construction process is managed by many developers as well.
This is the most expensive form of real estate, it involves acquiring an empty piece of land with the sole aim of developing it whether into commercial, industrial or residential use and selling them off for a huge profit.
Nigeria is a heavily populated nation with over 200 million people, this has however increased the demand for proper housing.
Development in Nigeria is at its peak unlike other times, major areas affected are sports, Tech, Transportation and finally Housing/real estate which is what we would be emphasizing in this edition.
In recent times, Nigeria has been the target for real estate developers because of the rise in population.
2. Become Real Estate Agents (Realtors)
A real estate agent or realtor is somebody who represents the sellers or the buyers of a housing property.
These are simply middlemen between the property owner and the buyer, all they do is get a commission from successful sales of property.
This is the cheapest way to get started in the real estate business. No money or hassle is required.
All you need is to do an agreement with the property development company and you are good to go.
Most Property development company are ready to pay you up to %15 on each sale on every property.
3. Start Property Rent/Leasing.
Renting, also known as hiring or leasing, is a contract where payment is made for the temporary use of another good, service or land.
The purchase of an existing or new building for the sole purpose of rental income includes this type of real estate.
This is the most popular form of real estate business in history, especially when an individual owns more than one home, he or she can decide to lease one of his property for a specific period.
4. Resort and Vacation Homes.
This can be a very successful niche market if live in an area that is appealing to tourist, you can make money from renting out your apartment or maximize opportunities and attract foreign buyers to you.
This works majorly in capital cities of any country, locations like Lagos, Accra, Johannesburg, Sydney are a hot spot to start a real estate business.
5. Luxury Homes.
Selling luxury homes is another real estate marketing niche that can make you a lot of money, The luxury home niche looks nice at first glance, the high home prices usually correspond with the commission to be paid to the agents.
Luxury homes now require a special kind of marketing, this generally means more investment in advertising, one way to get started is by subscribing to digital advertising.
2. Get Registered or Become Accredited.
Company and Business Name registration is the first step to take to start your real estate company.
Every business needs to be registered to get started, this is one factor that adds genuinity to such a business.
As a Real estate development company, you need to register your business with the government of the land in which you operate to gain the trust of the locals in such an environment.
Being a realtor at first you don’t need to worry yourself over this if you are starting at first, after all, you are just a middleman retailing for a legit company, no one will care to ask you.
3. Get your Team On the ground.
Real Estate is a very huge startup that requires a very large and competent team from various works and profession. A few out of many experts you would be needing are.
- Civil Engineers.
- Quantity surveyor.
- Business Administrator.
- Mechanical engineers.
- The above-listed personnel should be a team you should have on the ground.
As a real estate development company, you are going to need a full team on the ground of the above-mentioned experts to help get the job done, after all, all you are to do is to provide people with homes.
Realtors don’t need all of this, all you just need is to be able to convince the client to purchase a home with you.
3. Get a Hot and Selling Location.
Getting hold of the desired location to site your estate is also one of the very important decision to make when starting your real estate development company.
Most property will sell out fast because of the location.
One of the most important characteristics in choosing a location your real estate business is.
- Closeness to the central Business district.
- Proper Infrastructural facilities
- and mostly factors that favour the economy positively
Realtors should also aspire to top spot and hot selling locations, this makes selling properties a lot easier than when you are selling in a remote and a not well-known location.
This also applied to anyone who is also involved in property rental, as properties located in host spot are usually rented out at a very higher price than any other location.
4. Get Investors.
After you have must have chosen your desired location, the next thing to do next is lookout for investors to help you purchase the land. Most landowners would offer their land to real estate developers for purpose of equity, so if you are lucky enough to meet someone interested in partnering with you, then it would be a great deal which would then result in a joint partnership between the Landowner, real estate developer and the investor bonded together by a memorandum of understanding with the sole aim of splitting profits.
As a realtor, if you are seeking to retail fast then you need to go after ready investors who are interested in
5. Create A Website.
Every business in the 21st century requires a website to operate. You need to set up a virtual office so that it would be much easier to operate.
Here is an article I recommend you read to take your business online.
You can read my article on setting up a website.
No matter how much local marketing you do, you need a web presence to attract and engage online leads. It may cost a little money up front, but a solid, SEO-focused website can help you convert online leads from search engine and social media.
To learn about search engine optimization you can read this article.
6. Promote Your Real Estate Business.
The ingredient in every business is advertising, and it is what makes every business make money, you cannot have a complete business without advertising and promotions.
1. The use of a Website.
As a realtor, it is very wise and profitable to own a personal website of your own.
Potential customers are searching every minute in your location, having a search engine optimized website can help your business show up in search result.
You can check my article on blogging and owning a website below.
- How To Build A Website For Free
- How To Start A Blog And Make Money
- How To Choose A Domain Name For Your Website or Blog
And if you are looking for where to purchase a domain and a WebHost then I suggest you read this article.
2. Use Social Media.
Social media is another wonderful channel to spread the news about your real estate company, you can get the news across to prospective clients and customers on why they should own property.
Digital ads allow you to target a wider range of audience across national borders, Targeting various countries outside your reach and location is a very bad idea and would not convert your potential clients.
My advice is to target location more closer to you, at least don’t go beyond your country of residence.
Here is an article I recommend you read to get started with making use of social media platforms such as Facebook, Instagram and Twitter for your real estate business
- How To Grow Your Business On Facebook
- 5+ Quick Ways To Get Verified On Instagram
- How To Grow Your Business On Instagram
3. Email Marketing.
This involves sending mass emails to a prospective customer about a particular listing or property, though we live in a world where emails are not valid any more, using email helps you look more genuine and prospective customers are likely to believe you even without seeing you.
You can check out my post on email marketing.
4. Property Listing Websites.
Property listing website is websites that simply allows various real estate businesses to submit their properties online and get a link back to them. Just in case you are not able to lay your hands on the above-mentioned recommendation then you can always seek out a property listing website very close to you. Here are some property listing websites available for you to try out.
1. Nigeria Property Market.
Nigeria Property Market is a superbly built website with user satisfaction in mind, moreover, property search is simple and user-friendly good website colour harmony is generally excellent.
TRY IT NOW- NigerianPropertyMarket
Airbnb is an online marketplace that joins people who want to rent out their homes with people who are looking for accommodations in that locale. It service is currently available in over 220 nations all over the world with exception of nations like Pakistan, Iran and Afghanistan where the war is presently on the rise.
With the hosted Airbnb service, all you need do is to visit the official Airbnb Website to upload your listing for free, visitors in that location can then search for apartments in that area and you stand the chance of getting listed.
Airbnb allows you to rent out your properties faster, payment is collected by Airbnb on the behalf of the host and is released just after 24 hours when the visitor has successfully checked in.
TRY IT NOW- Realtor.ng
3. Property Pro.
TRY IT NOW- Propertypro.com.ng
This Company started slowly but with the way they are going, it is estimated to take over the virtual real estate industry in Nigeria in a short time, with remarkable visibility, user interface, and ease of search, propertify Nigeria flaunts the reputation of prompt and quality service delivery, with a near-zero seconds response rate.
If selling your property is pretty urgent, you may wish to try them out today.
TRY IT NOW- propertify.org/
As mentioned in the above paragraph, the real estate business is fast-moving and there are no chances of it backing down even years from now, so if you are looking for a legit income I recommend that you try out a real estate business today.
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