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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 for the demand of housing by some 700,000 units per annum.
What Is Real Estate?
Real estate is the property, land, buildings, air rights above the land and underground rights below the land. The term real estate means real, 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.
The value of real estate generally goes up despite recessions. Values continuously increase over time. This makes the real estate business forever. Years from now a property will always be worth far more than 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.
This cash flow will help you through your entire real estate journey.
3. Full control.
If there is any business that is sustainable and has long term control then it is real estate.
Choosing real estate allows you to take full control of your success or failure. If you want to get a better deal, you need to hustle to find it.
How To Make Money In Real Estate
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 property development, is a business process, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of developed land or parcels to others.
Real estate developers are the people and companies who coordinate all of these activities, converting ideas from paper to real property.
Real estate development is different from construction, although many developers also manage the construction process.
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 laying emphasis on in this edition.
In recent times, Nigeria has been the target for real estate developers because of the rise in population.
2. Become A Real Estate Agents (Realtors)
A real estate broker, real estate agent or realtor is a person who represents sellers or buyers of real estate or real 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 letting, is an agreement where a payment is made for the temporary use of a good, service or property owned by another.
This category of real estate involves the acquisition of an existing or a new building for the sole purpose of rental income.
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 own property for a specific period of time.
How To Start Your Own Real Estate Business.
Starting a real estate development company is not as difficult as people usually think.
This post would guide you effectively on kick-starting your journey into a real state.
The first step to starting your real estate developing company is.
1. Set Business Goals.
Goal setting is very important in every business, clearly defining what you want to achieve is very paramount to every business.
Creating an effective business goal can simply be crafted by studying the big players in the industry, get to know how they work and operate, this can help you craft a better and achievable goal.
As a real estate development company, you want to set certain goals as to how many people you want to provide housing for at a particular cost, location at a particular time.
You can even decide if you want to go deep into luxury or just sell out lands alone, remember the goal is what defined every business from the other.
And if you find yourself being a realtor, you can clearly set goals as to how many homes you want to have in your archive and how many people are ready to hear the good news of them owning a home.
Finally, if you choose rental property as your own real estate niche then you need to set clear goals as to what kind of people you intend to lease your homes to and what price you intend.
2. Business Name Registration/ Company registration.
Company and Business Name registration is the first step to take to start your real estate company.
Every business needs to be registered in order 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 in so as 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 really 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 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 who is 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 really 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 in order to take your business online.
You can read my article on setting up a website.
- How To Create A Business Website For Free In 2020
- How To Choose A Domain Name For Your Website or Blog In 2020
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 engine and social media.
To learn about search engine optimization you can read this article.
How To 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 In 2020
- How To Choose A Domain Name For Your Website or Blog In 2020
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 in order 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 In 2020
- 5+ Quick Ways To Get Verified On Instagram In 2020
- How To Grow Your Business On Instagram In 2020
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, but 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 are 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 designed website with user satisfaction in mind, more-so, property search is easy and the website is generally user-friendly good website colour harmony.
Website – NigerianPropertyMarket
Realtor NG is a top-notch real estate listing website with almost the best interface, it has a high google/search engine ranking, most users would agree that the website is smart, easy to use and very navigation friendly.
Website – Realtor.ng
3. Property Pro.
PropertyPro is currently, without doubts, the Nigerian top online real estate portal, highly promoted, highly indexed by search engines, globally visible, their business model is unique, users and clients argued their satisfaction with Tolet.com.ng is unquestionable.
Website is updated regularly, They are innovative and pays serious attention to detail and benchmarking. It’s really a business to watch out for.
Website – 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.
Website – 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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