In this article, you will learn how to start a real estate business in a way to make a huge profit from it.
Real estate has become one of the most amazing and lucrative businesses to venture into.
However, it has become the most profitable business in Nigeria given the risen population of the country.
Government policies have really favored real estate investors and as such one who invests or works as a real estate agent is bound to make plenteous money.
This is not to say that the business does not have its setbacks and challenges.
Oftentimes real estate investors encounter great deals of loss as a result of developmental policies.
Nevertheless, the market will remain a well-established one with tough competition from various new and established investors.
However, never get dismayed by the competition but focus on building an exceptional brand and something outstanding.
Understanding Real Estate Business
Real estate is a property or large collection of properties. It encompasses both land and buildings.
However, the real estate business which is the act of buying, selling, or renting properties, buildings, homes, or land is a very lucrative business.
In the real estate business agents help homeowners, businesses, and investors buy and sell various types of properties.
Real estate business can be categorized into various parts, such as loan servicing, residential and commercial properties, and many more.
Residential real estate includes undeveloped land, houses, condominiums, and townhouses.
Again, commercial real estate is office buildings, warehouses, and retail store buildings; while industrial real estate includes factories, mines, and farms.
Real Estate Business in Nigeria
The real estate business in Nigeria is a very lucrative business to venture into.
This business has remained among the long-standing business industry in Nigeria.
It has in the course of time evolved into a goldmine, and many smart entrepreneurs have tapped into it and are making lots of profit.
In seeking investment alternatives, there are always plenty of choices where one can put their money.
Stocks, bonds, exchange-traded funds, mutual funds, and real estate are amazing investments no matter the level of experience one has garnered.
However, forex or cryptocurrency might be too volatile for investors who are starters.
Whichever option entirely depends on how involved one chooses to get involved in their investments, how much money one has to start investing, and how much risk one is willing to bear.
Acquiring real estate remains an investment strategy that can be both satisfying and profitable.
Different from stock and bond investors, an intending real estate owner can buy properties by paying a portion of the total cost upfront and then paying off the balance, including interest, over time.
Of course, what makes real estate investment beautiful is its high chances of success, and returns on investment.
One whose investment is characterized by a high level of risk, there is certainty that the risk will be balanced out by a high possible reward.
Again, Nigeria is among the most populated countries in the world as a result there is always a need for residential apartments, office buildings, commercial outlets, and many more.
People with money look to either buy or rent buildings and structures of their choice, and oftentimes they find this need to consult real estate agents or experts in their choice making.
Thus, this explains why the real estate industry is filled with business opportunities and has been rated among the fifth largest contributor to Africa’s GDP.
How to Start a Real Estate Business in Nigeria
Given the good success recorded by real estate business investors in Nigeria by investors, this does not reduce the fact there are landmines that need to be avoided.
However, In order to be successful real estate industry, one should have good firsthand knowledge and information on the workings of the business.
The following basic guides will help equip prospective investors with the needed knowledge and information to acquire and begin their own real estate business in Nigeria.
1. Good strategic business plan
It is important that prospective investors go on first to make a very good strategic plan that will set them high in the market.
Real estate investment is almost like starting up any other career in which one can not begin ordinarily without having a good business plan in mind. A good business plan is essential for any real estate investor.
2. Establish a unique brand
Build something unique and exceptional. Focusing on building a unique brand goes a long way in making one’s real estate business flourish.
However, brand credibility is necessary for building a successful business in Nigeria most importantly when it is entirely about the investment of millions of Naira.
Branding simply means adopting a business standard that will impress greatly in the minds of people. It distinguishes one’s business in a manner that is peculiar to that business.
To build a real estate business into an acceptable and trustworthy brand, there is always this need to give customers real value for their money and establish a relationship by engaging with them on a very personal level.
Again, exempting one’s real estate business from the competition by investing in premium branding identities such as logos, websites, adverts and more has a way of giving one’s real estate business lasting uniqueness.
3. Legally register the business with a Law firm
It is highly important that one registers their real estate business with law firms. As an investor who really desires to take this business to the highest possible level, such an investor must legalize the existence of its real estate business by registering the business with the Corporate Affairs Commission (CAC).
Registering as a Business Name with CAC will give to a greater degree the needed cover at this stage for persons who cannot yet afford to register it as a Limited Liability Company (LLC).
Again, be sure to maintain the rules and regulations that bind professional real estate bodies in Nigeria to avoid operating against the law.
Some of the renowned real estate professional institutions to watch out for include; the Association of Estate Agents in Nigeria(AEAN), the Nigeria Institution of Estate Surveyors and Valuers (NIESV), and lastly, the Real Estate Developers Association of Nigeria (REDAN).
4. Get the needed capital to start
For investors who really want to thrive in this business, it is of great importance that such prospective investors garner the required capital to launch a real estate business.
One who has done a good business plan, and research well must have known the minimum amount of money it will require to get started depending on the scale at which a prospective investor chooses to start.
In cases where one savings is not giving the required starting money, such an investor should go for alternative sources of income. Real estate business in other words is capital intensive and requires plenty amount of investment.
5. Launch and Get Working
The final step to starting a real estate business is the execution of plans. Bring to reality all that you developed in your business plan.
Most real estate prospective investors that failed attributed their failure to poor execution of their plan or not executing the good plans they have nurtured.
Execution of one’s plan includes the everyday activities in the business. Closing of deals, marketing, networking, client orientation, human resources, and many more are all that make good execution of the plan.
Launching a real estate business is never a business of cowards. However, success in the real estate business is characterized by good planning properly executed.
Again, challenges that will present themselves as an obstacle will rather be a stepping block to the eternal dynasty.
Be goal-oriented, and nurture your ambition, both at a personal level and as a business owner. Remain a goal-oriented and organized person.
Lastly, keep in mind that the real estate business is not about achieving instant success. But, it is a long-term venture, which requires a lot of patience for it to mature.
Key Takeaways on Real Estate Business
- Prospective real estate owners can acquire properties by adopting the leverage method; paying a portion of their total cost upfront, and paying off the balance over time.
- The surest way in which investors can make money in real estate is to become the landlord of a rental property.
- Becoming a flipper; buying up undervalued real estate, refashioning it, and selling it, can also earn an investor good income.
- Real estate investment groups are a more hands-off way to make money in real estate.
- Real estate investment trusts (REITs) are basically dividend-paying stocks.
Conclusion on How to Start a Real Estate Business
Venturing into the real estate business in Nigeria is a business characterized by opportunities and challenges.
Step-by-step adherence to the guide explained above and staying committed to one’s goals is the surest route for a successful venture in this dynamic industry.
Lastly, investing greatly in your real estate business logo is of great importance, as it is more than just a visual symbol – it symbolizes your brand’s identity and values.
Just as with properties, building client relationships is meticulously done, in the same way, giving good, equal thought to creating a logo that resonates with professionalism and trust.