How to start house and land business(real estate)

If there is any business in Nigeria that is truly lucrative and extremely profitable, it has to be Real Estate business in Nigeria. Most of the top billionaires in Nigeria are real estate investors. The business is a money spinner to the highest level. Real Estate is currently booming in Nigeria andpeople are making millions in it. Today, wewant to take a closer look at the business and see how you can invest in this sector of the economy (irrespective of how muchyou have) and make serious profit.

      One thing very good about real estate business in Nigeria is that the investment opportunity is so diverse that there seem to be something for everyone. Anyone who wish to invest can invest whether he has thousands or billions of naira, you caneven invest without a dime in your pocket.Let us see how it works.This is the first article I am writing on real estate business on this website. So, I will try to highlight some of the best investment opportunities in the industry, and expand on the topics in the subsequent articles.

See also:how to earn money with your Facebook account

Profit Potential in Real Estate Business

Before we proceed, we want to look at theprofit potential in real estate business in Nigeria. I bought a plot of land in kano State in 2011 where I had wanted to develop for small hotel. I paid ₦500,000 for the land excluding some minor egunje to the boys.

   In 2013, I changed my mind and decided to sell it. When I asked the estate agents how much property was going in that area, they told me the current price as at then was two million naira. And that my own which is very close to the main road will go for between 2.5 to 3 million naira. If I had bought five plots that was offered to me for 2.5 million then, I would have made₦10,000,000from that single transaction!

Real estate is surely one of the most profitable bussiness in the world,and it has less risk compared to other businesses. Just like that, 2 million to 2.5 million gain in less than two years for a green horn likeme who was not in anyway into real estateinvestment. Then imagine what the professionals who knows the ins and outs in the business must be making. I also know a petty medicine seller who is now amulti millionaire through estate investment he started few years ago. And he started with almost zero capital.I know how some of the millionaires in theindustry started. Some of them started as small real estate agents in a kiosk. Today, they control the finest estates in kano, Abuja and other major cities in Nigeria.

Investment Opportunities in Real EstateInvestment

 opportunities abounds in real estate. Start with what you have. As you grow in the business, you can expand yourportfolio. Or you can start big straight away if you have access to capital. In this article, I will only deal with real estate categories that are peculiar to Nigeria. Suffice to say this article is made speciallyfor beginner real estate entrepreneurs. Here are some of the areas you can invest and make your own money without tears.

1.Land Flipping

This means buying of land and quickly reselling it for profit. This is one of the smartest investment in the industry and requires no effort whatsoever. Just your money and knowledge and you are good to go. You will need substantial amount if you want to make hundreds of millions but you can start small by buying just one plot and grow to buying tens of plots and acres of lands and keep selling all year round.

2.Open Space Leasing

This works in a simple and unique way. Buy a property in a good location and lease it out for makeshift use. You can lease it to churches or business that wants to develop a makeshift outlet such as car wash and mechanics. They will be paying you monthly rantage while the property still appreciates for future sell. It is like borrowing money for someone and get paid double interest and still get your money back.

3.Real Estate Agency

This one is the simplest and easiest of them all. It is not investment per say but service rendering. How it works? Go roundand look for properties to let and for sale, advertise your service and help secure clients for the property owners, you will be paid percentage as commission base on the amount the property is sold or rented. You can start with little or no money and if you are smart enough, you will grow to become a giant realtor.

4.Property Development

This is where the big guys in the industry are doing their stuffs. They acquire properties in nice locations, develop it into luxury apartments, commercial structures, etc and sell at a very high profit margin. If you spend N200 million to develop a property, be sure you are going to sell for N400million.

5.House/Office Rent

Build a house and put it up for rent, get paid all year for a life time. That is exactly how this work but there is much more to that than I just stated, watch out for detailed articles on this soon.