If You permit me to ask you, what are the immediate needs of any man in the order of preference, It would be food, clothing and then shelter; no one can make anything extra out of life without having this in place.
The real estate market is enormous. For example, here are the relevant statistics you should know for the residential real estate market in the US.
5.34 million existing and 667,000 new homes were sold in 2018, according to the National Association of Realtors, and 842,000 houses were sold in the United States in 2020.
Not just referring to the US alone, the real estate business booms in every major economy of the world, be it Nigeria, India, China, Japan or even Singapore. Therefore, this article can be applied to everyone living in various parts of the world.
Do you have the following Questions;
- how to start your own real estate development company
- how much to start a real estate company
- how to own a real estate company
- how to get started in commercial real estate investing
- how to start a business in property development
- how to start your real estate firm
- how to start a real estate management business
- how to start a commercial real estate company
- how to start an international real estate business
- how to create a real estate company
This article has been created to help answer the above questions with clarity. Make sure to stick to the end to get a comprehensive understanding.
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 Should You Engage in Real Estate?
1. The real estate market is forever.
Real estate will never die as long as man lives and his offspring remains on earth. Therefore, housing will forever be a problem, and there is never a complete solution; thus, a business is always created around it.
Despite recessions, the value of real estate usually goes up. This is because 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 today.
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 sustainable business with long-term control, it is real estate. Choosing an immovable property allows you to control your success or failure fully. But, of course, 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 will guide you effectively in kick-starting your journey into a natural state. The first step to starting your real estate development company is.
1. Choose a Real Estate Business Niche.
A 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 primary reasons I love real estate is that so many avenues opened wide to investors with little or no cash. For better understanding, I will be listing very few real estate opportunities to get started with, even for the big and small spenders.
Real estate is a vast industry, and therefore it is heavily branched; in this section, I will 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 many developers manage the construction process.
This is the most expensive form of real estate; it involves acquiring an empty piece of land to develop it, whether for commercial, industrial or residential use and selling them off for a considerable 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 we will emphasise in this edition.
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 represents the sellers or the buyers of a housing property. These are simply intermediaries between the property owner and the buyer; all they do is get a commission from successful property sales.
This is the cheapest way to get started in the real estate business. No money or hassle is required.
All you need is to agree with the property development company, and you are good to go. Most Property development companies are ready to pay you up to %15 on each sale of every property.
3. Start Property Rent/Leasing.
Renting, also known as hiring or leasing, is a contract where payment is made to use another sound, service or land temporarily.
The purchase of an existing or new building for rental income includes this type of real estate.
This is the most popular form of real estate business in history, especially when individuals own more than one home; they can decide to lease one of their properties for a specific period.
4. Resort and Vacation Homes.
This can be a very successful niche market if you live in an area appealing to tourists; you can make money from renting out your apartment or maximise opportunities and attract foreign buyers.
This works majorly in capital cities of any country; locations like Lagos, Accra, Johannesburg, and Sydney are hot spots 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 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 starting 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, 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 vast startup that requires an extensive and competent team from various works and professions. A few out of the 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 will need an entire team on the ground of the experts mentioned above to help get the job done; after all, all you are to do is provide people with homes. Realtors don’t need all of this; all you 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 critical when starting your real estate development company. Most properties will sell out fast because of the area.
One of the essential characteristics in choosing a location for your real estate business is.
1. Closeness to the central Business district.
2. Proper Infrastructural facilities
3. and primary 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 selling in a remote and not well-known area.
This also applies to anyone involved in property rental, as properties in the hot spot are usually rented out at a significantly higher price than any other location.
4. Get Investors.
After you have chosen your desired location, the next thing to do is look out for investors to help you purchase the land. Most landowners would offer their land to real estate developers for 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
6. Promote Your Real Estate Business.
1. The use of a Website.
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 upfront, but a solid, SEO-focused website can help you convert online leads from search engines and social media.
To learn about search engine optimisation, you can read this article.
As a realtor, it is very wise and profitable to own a personal website of your own. Potential customers search every minute in your location; having a search engine optimised website can help your business appear in search results.
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, I suggest you read this article.
2. Use Social Media.
Social media is another great channel to spread the news about your real estate company; you can get the information across to prospective clients and customers on why they should own property.
Digital ads allow you to target a broader range of audiences across national borders; targeting various countries outside your reach and location is terrible and would not convert your potential clients.
My advice is to target a location closer to you, at least don’t go beyond your country of residence.
- 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; However, we live in a world where emails are not valid anymore; 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 allow various real estate businesses to submit their properties online and get a link back to them. If you cannot lay your hands on the recommendation mentioned above, 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 user-friendly and straightforward good the 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 looking for accommodations in that locale. Its service is currently available in over 220 nations all over the world.
With the hosted Airbnb service, all you need do is 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.
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 excellent 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. There are no chances of it backing down even years from now, so if you are looking for a legit income, I recommend trying out a real estate business today.
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