The real estate sector is one of the sectors in Nigeria that many are venturing into because it is lucrative.
It is the new discovered oil that many want to tap and make good money from it. And making money from real estate can be either by investing in real estate and by owning a real estate business.
Investing in real estate would require huge capital outlay but the return of investment is usually rewarding in the long run mostly when you invest in rental properties such as commercial, residential, specialised and industrial that usually command high rent and generate good income due to the high demand. To be a good real estate investor, you must have a formal education and skills in real estate to be able to do critical analysis on the real estate market, ability to take risk and seize opportunities, ability to understand the demand and supply factor and to take concrete decision on when to invest and when not to and to function effectively.
Owning a real estate business is good and also require some capital to function. The business has become so lucrative that quacks who dont have formal education and skills which is a necessity to funtion effectively are predominant just for the purpose of making money.
The global real estate market is always changing and it is adviseable to keep abreast with it by getting a formal education and skills required in real estate to run your real estate business
Also, your time, resources,capital, patience, hardwork, passion and determination with good marketing and advertising strategy plan would be required to be successful in it.
This is how to make money in real estate:
- BE A REAL ESTATE AGENT:
Yes as a real estate agent which does not require much money to start but with little skills and experience, gives you a greater chances of making money in three ways;
>>Represent buyers who are in need of land and houses to buy. All you have to do is to conduct a thorough search for what they want and ensure it is up to their taste and standard. They pay for it and you get your agency fee.
>>Represent clients in need of rental properties such as students, civil and public servants and business owners to get a home that is to their taste and standard. They pay for it and you get your agency fee.
- BE A REAL ESTATE DEVELOPER:
This requires much capital to start. And this capital can be collected as loans from banks or borrowed from associations depending on the type and nature of real estate development project that is to be embarked on.
As a real estate developer, you engage in renovating a building or set of buildings or construction of new building or set of buildings for the purpose of selling it to interested clients in the property market to make profit.
To succeed in this, you need a good and reliable real estate development plan.
- INVEST IN REIT:
REIT simply means real estate investment trust. They are companies that own, manage, or otherwise represent real estate (usually large) portfolios.
Investing in REIT can be a great way to invest in the real estate market with relatively low risk especially in Nigeria where REITS are highly successful and provide less risky investment options in real estate to both small and big investors with regular and dependable income to the unit holders.
But it is quite pertinent that most investors in Nigeria do not invest or know much about REIT maybe because it is not common and they are few.
An example of REIT companies in Nigeria are: Skye Shelter Fund, UACN and UPDC property development and company, and UnionHomes.
- INVEST IN RENTAL PROPERTIES:
This involve erecting a property placing and using it for rental purposes. This usually generates regular income flow when placed for lease and to let such as commercial properties like office spaces and blocks, residential like 1,2,3 bedroom flats, industrial such as warehouses, and specialised properties such as guesthouse, hotels, cinemas, club houses and so on.
- START AN ESTATE SURVEYING AND VALUATION COMPANY:
This are licensed and registered real estate professionals with The Royal Institute of chartered Surveyors (RICS) andThe Nigerian Institution of Estate Surveyors and Valuers. To run this business and make good money, connections and to have greater real estate opportunities, you must have a formal education and skills in real estate,be a member of the institutions above.
- BE A PROPERTY MANAGER:
For the fact that there are many rental properties in the real estate market where the real owners do not have the time to look after it but rather employ the service of a property manager to manage their property and the tenants. You stand a chance to make good money but it requires good mangerial skills and expertise in property management to function effectively.
- BE A REAL ESTATE WEBSITE DESIGNER:
This aspect involves designing and developing good and reliable real estate website that can generate leads for real estate companies and get paid for it.
Although to function effectively, you would require vast knowledge in programming and web development and design.
- BE A REAL ESTATE BLOGGER:
Here, you make money from owning and running a real estate blog where you spend time writing and posting articles that interest and solve people problem in real estate. With time and patience, you would start making good money when real estate investors and sponsors develop interest to advertise on your blog and to buy your blog.
An example of real estate bloggers in Nigeria are Nigerian Real Estate Hub, Property 24, To-Let, 3 Invest and Real Estate Stream.
- BE A REAL ESTATE FREELANCER:
As a real estate freelancer, you get paid for offerring real estate services online. Such services could be to market a property and get buyer, to write a real estate content for a real estate company website, to advertise and get a real estate buyers and sellers, to prepare a property listing using Microsoft excel for a client, to do and prepare a real estate research report and so on.
An example of websites that pay real estate freelancers are Upwork, Jolancer, Fiverr, Asuqu and many others.
We sincerely hope you enjoyed the post.
- If you have any questions, please ask in the comment box. Happy to help.
- Suggestions and comments are welcomed on this blog, tell us what you think about this article.
- If this article is helpful to you , please kindly share so others can learn.
- Subscribe to our blog to be the first to get our latest notification.
RECOMMENDED POST
This article was very helpful for beginners in Real Estate Market and on point, thank you so much. I’m reading all the other articles as well, you’re very insightful and encouraging. Thanks!!!
ReplyDelete