Real estate investment in Nigeria has been generating real and consistent income for many smart entrepreneur in the country and different part of the world.
And many people are still skeptical about how really the business work.
Some knows how real estate investment business work in Nigeria but don’t have enough capital to skyrocket the great business idea. If you’re in this category or under the aforementioned situation above, this article will enlighten you on how to become a real estate investor with little capital and make some profits.
But for reference sake, we may need to define the meaning of real estate investment and from there, you can catch the main idea of the business.
What is Real Estate Investment?
Real estate investment is the kind of business that deal with purchase of real estate or property with the intention of selling in higher price and thereby making some profits.
It can be property acquisition for a long term and, sold off which value is its value is increased. Renovating property to sell at higher price or engaging in property rental services.
But that’s not all about real estate investment in Nigeria. Here is a fact;
What you need to know about real estate investment in Nigeria
For starters, real estate investment has proven over the years to be one of the most profitable business for investors in Nigeria and all over the world. Making the profit isn’t as quick as you see with other businesses, and that’s why it’s called an “investment” making it a long term profit system.
Like in most businesses, there are best practices and steps to follow in other to be successful at it and same thing applies to real estate investment.
So, we are going to take a look at every and each tips related to starting a real estate business in Nigeria even, without having huge capital.
How to Start Real Estate Investment in Nigeria – Beginner’s Guide
Below are 6 proven tips by experts worldwide on how to make more profit from real estate investment in Nigeria.
1. Get a Unique Business Name
The first thing I will ever advise you to do is to create a professional but unique name for your business.
Think of a name that will speak more about your business even before you introduce what your business is all about.
But note that when I say “UNIQUE” name, I mean a name that:
- Its social media handles are available
- Its domain name is available for purchase from any web hosting company
- It shouldn’t be searchable on search engines (because you’re not to compete with anybody’s business name)
- And finally, the name should be easily pronounced.
CHECK HERE: How to Choose a Unique Business Name
After getting your business name, the next thing is to make sure that government know about its existence.
But how? Check the next step below:
2. Register Your Business with Nigeria’s Corporate Affairs Commission (CAC)
Registering your business can’t cost you much. Normally, it should cost you nothing more than N12,000 which includes the Name Reservation fee, Business Name Registration fee and other little expenses.
It’s the one of the first 3 most important steps for setting up a business which include real estate investment in Nigeria.
The Corporate Affairs Commission (CAC) is the only Nigeria’s government official conferred with the authority to register and approve businesses within Nigeria.
Registering your business name will attract some benefits to you. It makes you professional, trusted and free from any harassment from government or force officials.
If you’re thinking right with me that it’s a nice move to get your business name registered, I have a guide for you:
Read >>> How to Properly Register Your Business Name With CAC in Nigeria
But if you think you won’t be able to handle that successfully, I’m ready to help you out. I will:
- Help you find a unique business name related to your business
- I will get it registered with CAC for you
- And set up a professional business website for you.
This is 3-in-1 package which should cost you something around N350,000 but because you’re a reader of this blog and you’re ready for this 3-combo service, I’ll give you some discount beyond your expectation.
Just contact me (HERE) or whatsapp me directly on 080-6886-6068. Please contact me with this coupon code “InvPos2019”.
3. Get a Business or Portfolio Website
Because everything is getting more global these days, you need to have an automate platform where your prospects or customers can be able to reach you (even when you’re sleeping).
The best choice is to set up a very responsive and beautiful business website. In my business website (HERE), I have been able to tap clients for my team even when I’m asleep.
A business without a website these days has very lean chance of dominating the market.
To skyrocket your idea of real estate investment in Nigeria, I’ll urge you to get a website made for you.
In the #2 above, I said I will offer you 3-in-1 combo service at a very discounted price, the service includes a business website for your real estate business.
The next thing is to start playing your game gradually and that’s what I’m going to enlighten you on:
4. Buy at a Lower Rate
For every business person, the price of an item is key.
The same applies in the real estate market, the price of a property should be considered before choosing to make that purchase. It’s similar to what we have in stock market, buying low is key to making profit.
After a proper examination of the property, the purchase should be made immediately the price matches with the value, waiting for the price to appreciate isn’t advisable, once you’ve purchased your preferred property of choice you can now sell at an appreciated rate and this should be your profit.
Example: A property bought at the rate of N8 Million, for the sake of making profit, a sale should be made after its appreciation. It could rise to N10 Million+, the increase in the value of that property becomes your profit
5. Selling At a Greater Amount
You’ve bought at a less expensive price, it’s time to sell. You should sell a much higher price than you’ve purchased. This is a common idea among business persons and that’s also what should be part of your motive as a real estate investor.
The big deal is to always buy when the price is low, then you sell when the price appreciates.
Before selling, you should consider the acquired expenses, it should cover the expenses and have some left. Buying a property involves a lot expenses like cost of registration, legal fees and some transaction charges, selling at a higher rate covers all these thereby increasing profit.
As said earlier, it’s quite similar to stock market trading, those with stock market experience could easily navigate the waters of real estate investment in Nigeria.
6. Increase Net Profit by Renovating
Real estate values doesn’t always increase, in history they’ve been some period when it happened, you could buy a property worth a million naira to sell at N1,000,050.
The rate of inflation is beyond your control as a real estate agent in Nigeria, the government makes the decision which directly or indirectly affects the value of real estate business.
Despite all these, you could still improve on the estate’s value, how?
First off, you need to understand my fourth point of buying at a lower rate, then do some renovations on the property and this will no doubt increase its value in future.
Let’s say you purchase a slightly dilapidated property for the sum of N500,000, due to its horrible state, you can’t profit much if you sell a property with such condition.
What’s you’ll need to do is to get the property back to life by adding some paint or repainting, furniture of good quality should be added also, and whatever you know such a property should contain.
After doing all these, the value of that property will invariably increase and you can boldly say you’re in real estate investment business.
You should also consider this before initial purchase, before purchasing a piece of property should have a rough estimate of how much you’re to use for repairs and other expenses, it shouldn’t be much else you’re not in business, you could be likened to a charity organization.
This should be done in every property you purchase so as to increase your net profit.
7. Renting Is More Profitable
Those who have made millions from real estate investment in Nigeria will tell you that most of their profit came from renting and leasing.
This is one sure and steady way to keep the cash coming in, irrespective of whatever property it is, private or commercial, you get much more gain when it’s put up for rent.
Requirements for Starting Rental Service/Business in Nigeria
Before putting up a place for lease, some factors should be considered such as:
- Location
- Road network
- Availability of necessary amenities,
All these influence the rental value of any property. Location seems to be the most important among all, so before buying be sure to see if all these are in place.
Take a look at this simple calculation below:
A property bought at a rate of N5,000,000 is renovated with N1,800,000 plus miscellaneous expenses of N200,000. This sums up to N7,000,000.
At the end, you could get back all you’ve invested plus more in the space of two years.
Remember, real estate investment in Nigeria is not a “get rich quick scheme“, although it’s very profitable.
8. Have You Thought of Land?
If you haven’t, you should start thinking of how to start buying lands (if you’d like to make more money from real estate business in Nigeria).
Owning a land where you could set up a real estate yourself is very profitable and you should take advantage of this.
Before you get that land remember that location is vital. The developmental prospects of such a place should also be put into consideration. If an area has no prospect for growth in the near future do not invest, else you might run into loss at the end of the day.
Remember that land is one of the most important gift of nature (coupled with Water and Air) apart from the mineral resources given to us by God.
If you buy a plot of land at the cost price of N2,000,000 and you just do corner-pieces on the land to identify and different your land from others, after a year or two, you may sell off the land at the rate of N4,000,000 – N5,000,000.
The most important thing is that the price never decrease but increases with respect to development of the location.
9. Marketing: Get Seen, Heard and Paid
You have a great job from #1 – #8 and you still need to do more.
Although, real estate investment in Nigeria is not yet crowded like other businesses out there. But, the competition is high because real guys who are into this business are spending more on marketing.
But why marketing is necessary for real estate development business?
People these days are aware about what comes to their notice. And to make money from any business you lay your hands upon, you need to get your business to their notice because without these people, your business is NOTHING.
I believe your know the importance of marketing for any business right?
But let me remind you that the best marketing strategies for your real estate investment is through:
- Social media – Facebook and Instagram is the best choice!
- Google ads
- SEO (Search Engine Optimization)
- Offline marketing which include making banners, handbills, flyers, vests, radio jingles etc.
Read these helpful tips:
A physical presence is what you should also consider, you need a physical office separate from your virtual online presence. You need an office for discussing business, an office enables you to have a dialogue with your intending customers.
Wrapping up
Real estate investment in Nigeria has made billions of Naira for many smart entrepreneurs and more are still racking up the millions. You too can be part of the moving train if you choose to invest wisely today.
These tips above have been recommended by experts to be among the top ways to make more profit as a real estate agent.
What are you waiting for? Start investing today!
I’m sure that in one or the other, this article has help you get new idea about how to professionally start a profitable real estate investment in Nigeria? But do you know that there are other people outside there who can benefit from this article?
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Thank you for such a good passage discussed. I really have a great time understanding it.