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 billionaire in Nigeria are real estate investors and discerning Nigerians in diaspora are also taking advantage of it now . It is a money spinner to the highest level. Real Estate has always been a booming business in Nigeria and people are making millions in it. I want us to take a closer look at the business and see how anyone may invest in this sector of the economy irrespective of how much you have and still 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 can even invest without a dime in your pocket. So, let us see how it works.
Here are some of the areas you can invest and make your own money without tears. As you grow in the business, you can expand your portfolio or start big straight away. For relevance we will only deal with real estate categories that are peculiar to Nigeria, especially for beginner real estate entrepreneur.
1. 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 round and 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.
2. 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.
3. 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.
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.