Real estate business is known to be one of the most lucrative businesses in Nigeria. If you’re looking for a profitable business to start in Nigeria, then you should consider going into Real estate. This post will guide you to start a real estate business in Nigeria.
A lot of people think that Real estate business is limited to acquisition of properties, lands and building.
But it’s not just acquiring lands, building or properties. The business includes purchasing, selling or renting of land, building, homes and properties such as cars, antiques and so on.
Many Nigerian Billionaires are into this business, and most of them make their profite in millions.
I know a man who purchased two plots of land at N3 million. After 2 years, he sold it to another buyer at N15 million, and made a profit of N12 million.
I personally consider real estate business as the most lucrative business anyone can do in Nigeria.
Real estate business can be done in two ways;
- Real Estate Agent: This involves connecting buyers and sellers of lands, buildings, homes and other properties. An agent can also buy a property from owner and then look for people to sell it to.
- Investor: This involves buying many properties that will yield profit in future.
Real Estate business can be divided into;
1. Residential Real Estate: This consists of buying and selling lands, houses, condominiums (apartment houses) and townhouses.
2. Commercial Real Estate: This invloves buying and selling office buildings, warehouses, and retail store buildings.
3. Industrial Real Estate: This deals with properties, such as factories, mines, and farms.
Best guide to start Real Estate Business in Nigeria
People are always searching for a residential apartments to live in, office building for work and commercial outlets to carry out their businesses.
They always make a choice of either to buy a building or rent an apartment. Most of them sometimes require the assistance or information from a real estate agent before making such a decision.
Just imagine the number of houses, buildings, land and properties that exist. Real Estate is definitely a huge business opportunity.
To make it as a Real Estate business, you need to have a good knowledge and information of real estate.
Below are the things you need to do in order to succeed in the real estate business.
1. Formulate a business scheme
Just like every other businesses, for you to excel in real estate you need to implement a business plan on how to carry out the day to day activities in the business.
As a real estate agent or investor you need to put in place a systematic plan of action. You can not succeed in a business if you do not first plan your activities.
Planning a business especially in real estate involves starting small then you plan your way up.
2. Create a trademark
A trademark differentiates your business from other competitors.
A trade mark could be a logo, website, adverts or the way you attend to your customers.
A trademark is necessary in real estate because having a trademark increase your customers trust.
Involving in real estate means involving in millions of naira so, your clients or customers need to feel safe.
People will look at your business with high esteem.
In the course of undergoing business transactions with your customers give them more than what they are expecting. Build a relationship that will last.
3. Register your Real Estate business
it is essential that you register your business legally with the right agency.
For your business to be recognised as an entity, register your business as a Limited Liability Company (LLC) or with the Corporate Affairs Commission (CAC) so that you can operate with liberty anywhere and avoid been disturbed by governmental bodies.
Always follow the rules and regulations laid down by real estate agencies.
There will always be a monitoring team watching to ensure that the rule and regulations are being applied and no one goes against these rules and regulations. Such agencies include;
- Association of Estate Agents in Nigeria (AEAN),
- Real Estate Developers Association of Nigeria (REDAN)
- Nigerian Institution of Estate Surveyors and Valuers (NIESV).
4. Having the enough Capital
If you have enough capital to start, then you can start right away. But if your capital is not enough you can source for another means by seeking for leverage from equity investors, get loans or find other ways through which you can invest and fund your business.
Carry out a research to know the required amount needed to start a real estate business before commencing because in most cases real estate investment requires large amounts of capital.
5. Implementation of your business scheme
The next thing is to implement your plans.
For your business to grow, diligently implement all businesses plans you have pined down such as advertising your business, human resource, networking, bank transaction, customers orientation and closing a deal.
Been prepared and well organized is a contributing factor to accomplish your plans and make it in real estate.
Real Estate is a lucrative business that takes time to yield output.
There are lots of challenges and competition in real estate business.
Prepare your mind and be ready to face every challenges that comes your way in order to achieve your aspirations and be successful.