Most times, real estate is considered one to be the most lucrative and profitable business to do in Nigeria. Without a doubt, the Nigerian real estate sector is a multi-billion dollar industry, anyone can get started as an agent or investor and make money from it.
Many businessmen in Nigeria made their money from real estate investments. The real estate industry is a large one, there are various opportunities for one to tap to make money. However, not everyone who ventured in this business has made money from it. Some people are yet to recover the millions of money they pumped into the business.
As a prospective real estate investor, you need to be aware and conscious of the problems and challenges associated with the real estate niche. Some people may not disclose this to you, but the real estate business has a lot of difficulties. The market is a good one, but you need to be strategic and fierce to beat the tough competition from both established and new companies.
What is Real Estate Business?
In basic terms, a real estate business is a type of business in which land, home, building, and properties are traded. Real estate investors purchase undeveloped lands, houses, office spaces, shops, buildings, warehouses, mines, factories, farms, and other types of properties and resell for profit.
Nigeria has a large population and a booming real estate industry. Day by day, people are migrating and settling into new places, the demand for houses, business/office spaces, and properties are high. I know you are passionate about starting your own real estate business. Keep reading this guide to learn how to start a profitable real estate business from scratch.
1. Have a Business Plan
Nothing beats a properly researched and carefully documented business plan. You need to have a business plan to invest in the real estate business. You can hire an expert to help you survey the industry and come up with a strategic business plan.
2. Register Your Business
You would want to push your business idea by formally registering your business with the CAC. This legalizes the existence of your business and it makes you unique from the competition. Also, you can join associations and institutions such as the Real Estate Developers Association of Nigeria and the Association of Estate Agents in Nigeria and ensure that you are not operating against the rules.
Branding is good, giving your business a good name is more important. What can people say or testify about your real estate company? Will your brand be a trustworthy one or will it be a notorious one. Build an intimate or close relationship with your clients, ensure that they get value for their investment. Also, you can consider spending money on online and outdoor advertisements.
Creating a website for your real estate business isn’t a bad idea. Most investors make the mistake of spending millions on billboard advertising and other forms of local marketing and they neglect online marketing. The website must be functional and user-friendly, clear pictures, and videos of available properties can help get you more customers and generate sales.
A lot of investors in the real estate sector fail due to a poor marketing plan or failure to execute the strategies business plan. This can occur due to insufficient manpower, shortage of funds, and inadequate resources. If your savings aren’t enough and you are short of funds, lookout for alternative funding by getting grants, loans from financial institutions, or get finance from other investors.
Keep in mind that every real estate investor must be patient. The real estate business may not be for you if you are the type of person looking to make high profits within a short period.