How To Start Real Estate Business In Nigeria
How To Start Real Estate Business In Nigeria
Landed properties do not depreciate, rather they appreciate with each passing year and that’s why real estate business will always thrive, even if it fades out for a while, it will always come back into the market.
Real estate business is one business that you can invest in, whether you have millions or thousands or hundreds. Regardless of the dwindling nature of the Nigerian economy, real estate is trending and you can bag millions from it, overnight. It sounds too hyped but it’s the truth.
The real estate industry has become a very lucrative one. A lot of people who are very smart have launched it and they are making serious profit. The thing is that people will always be in need of houses and buildings, offices and warehouses for their businesses and comfort and they are always on the look out for real estate experts who would assist them in making the right choices. This is largely the reason why the real estate industry is filled with business opportunities.
However, this business is a serious one, it is not for the mentally weak. Just like every other endeavor in life, it has its ups and downs, and again, it’s a business and things may not actually work out the way you planned it, especially if you are new in the game and haven’t learnt all the kicks yet. Few things can happen while you are engaged in real estate business. For instance, someone might just start wake up one day and decide that your landed property is theirs, some other person may tamper with the boundaries between your landed property and theirs and start encroaching. If you have a building that you are putting up for rent, there’s every possibility that your tenants will refuse to pay their rent as at when due, for no reason at all.
Government may just start a demolition galore just because they want to flag off one development project or another.
Nevertheless, of you are a smart entrepreneur, and you take this business serious and make out the time to learn all there is to learn about it. Also, if you are prepared to handle the challenges and take the risks, then you are good to go.
1. Make a thorough research about the real estate market.
I’m yet to see someone that started a business without asking questions or seeking for wise counsel from people who have walked the same road. Before you start this business, it is very important that you make research on how it works in Nigeria. You need to be aware of the factors like the risks involved, what it would cost to set the business up, are there any tendencies? What are the guidelines?. You also need to educate yourself on the laws guiding the running of real estate market in the city or state where you reside. Being knowledgeable in everything concerning the business will help you to follow the right path to success.
2. Save, Save, Save.
There are few businesses, if any, that does not require a start up capital. Before you venture into a business as big as real estate, you must have known the minimum amount of money that you will need to start and this depends on the level you want to start. Start putting some money away, long before you start taking some actions to establish your business.
It is not a good idea to take a loan when you are just starting up. There are too many unforeseen events that may arise when starting a business. Some of them may be in your favour, others may not be. Save up some money, no matter how little and start from there to work your way to the top.
3. Lay out a business plan.
A carefully written business plan will do three things for you. It will let you know your destination, it will show you the road by which to get there and it will also let you know whether it is advisable to go there at all. If you don’t have a business plan and you are planning to go into a real estate business, you may have to rethink.
It is in your business plan that you will outline your goals, the duration within which you want to achieve them. Your business plan also includes your source of funds and the stages of growth of the business. Any other relevant information you want to pen down for the success of the business must be included in the business plan. Your ability to attract good investors may well depend on your business plan, so put in your best while drawing it up.
4. Legalize The Business.
Register your real estate business with CAC(Corporate Affairs Commission). The importance of registering real estate business can not be over emphasized. After registering with them, you will get a certificate to run your business. There are other agencies and associations that also regulate real estate operations in Nigeria.
5. Get A Respectable Office Facility.
Serious minded people, especially businessmen, do not have time for players and dull people. Your clients needs to trust that the investments they are making with you will not go down the drain. One of the things that will portray you as a serious business person is having a well equipped office and furnishing it appropriately.
If you say you are a real estate business person and your office is under a mango tree, or it is located in a small dingy room in a neighbourhood of people smoking weed and fighting with bottles, nobody on this earth will take you serious.
6. Employ Professionals
Even if you are the brain behind the business, you will still need a team that will carry out the daily activities so that things can move well and you won’t be choked up with different tasks which a simple division of labour may have solved. There should be office staff and those that will be out on the field. You should also hire surveyors, marketers and possibly contract staff.
7. Look for Investors.
Huge capital is required in a real estate business, so if you don’t have much, you can look for people to invest and partner with you. You can also take a long term loan from a commercial bank that can give you much leverage just until your business grows.
8. Land Flipping.
Buying landed properties are the main thing in the real estate business. You can acquire a land and resell it instantly and make your money. You may not have much money to buy a lot of plots, don’t worry, you don’t have to start out too big. You can buy one plot and in subsequent times, when the money begins to roll in, you can acquire as much landed property as you want and resell them.
9. Get A Business Website.
You are setting yourself for struggle and failure of you own a business and you don’t have a website for your business. Everyday, millions of people search the net for almost everything on the face of the planet. Among these people browsing the web everyday, their just might someone or some people who have been looking for credible real estate companies they can do business with.
Hire a good web designer and a SEO consultant to set up a website for your business. Your website should work in a way that your clients can make enquiries, ask questions on things that are confusing them. You can also put up pictures of what is available or what is not presently available but will be. There should be someone in charge of the website. This person should attend to their questions and be able to provide answers accordingly and quickly too.
10. Create Awareness.
Don’t just set up your real estate business and then shrink back into your shell and remain mute. Nobody will read your thoughts or stare at your forehead and know that you have a business. You have to advertise your business and announce to everyone around that you have arrived.
Radio and television are the major advertising agencies. You can also print handbills. Thankfully, with this new age technology, there’s Facebook and Instagram, and you can also advertise on your pages.
11. Buy And Lease Out An Open Space.
Buy a property on a good spot and put it on the market for a lease. People that want a makeshift space for a local fast food joint or for any other small scale business can pay rent and use the space. As time goes by, the land will be appreciating and you can sell it later for a high price.
12. Office And House Rent.
Like I mentioned earlier, landed property does not depreciate. Build a house and put it up for rent. You will receive payment nonstop monthly or yearly, as the case may be. You can build an office building, shops for rent and even a warehouse. These are landed properties that people will always be in need of. Acquire a land in a great location. If you want to build hostels for students, build it in a location close to the school, of its shops, build it in a busy area where people would love to stay and trade and there business will boom.
Also get to know the strategy for marketing landed properties and start developing the building design. When you can get public approval, you can develop a structure and then whenever you finally decide, you can sell it.