Real estate business has always been among top lucrative businesses in the world. The business has been producing billionaires for a long time and it will continue to produce because of the vast opportunities in it as most of human transactions are done using landed properties.
Some of the real estate moguls in the world are Wiang Jianlin, Michael Otto, Donald Bren and Stephen Rose etc. Some successful real estate investors in Africa are Sudhir Ruparelia, Samih Sawiris and Anas Sefrioui while in Nigeria include Mr. Jide Balogun, Prince Adetunji Ogunwusi, Femi Adewole and many more. They all started from the bottom and eventually made it made it to the top .
Real estate business in Nigeria
Nigeria's population is more than 200 million people, the most populous black nation in the world and one of the fastest developing countries in Africa with emerging cities like Lagos, Port harcourt, Abuja, Kaduna, Kano and Ibadan etc. Which offered massive opportunities in real estate business to tap in.
Majority of this population wish to own properties for comfort, business, security and other reasons best known to them, they are always in need of residential apartments, office buildings, commercial outlets, industrial sites and under developed lands either to buy, rent, lease or hire. These activities required the service of expert to facilitate transaction, as realtors, this is where your service is needed.
The real estate industry in Nigeria is fast growing and lucrative, it offers a lot of possibilities and financial freedom. If you think of making millions over the night, you are in the right place but you must have to establish yourself as the industry is very competitive and challenging, your ability to implement effective marketing strategies and goals will definitely distinguish you from others as well as enables you to make millions you desired.
What is real estate?
Real estate is also known as landed property. It's a property consisting of land and buildings such as commercial, residential, industrial buildings and farmlands.
Examples of commercial buildings include:
Hotels, bars, restaurants, shopping complex, malls, markets, offices, plaza, departmental stores, air and cargo ports etc.
Examples of residential buildings include:
Apartments, houses, and townhalls etc.
Examples of industrial buildings include:
Factories, agricultural lands and warehouses etc.
What is real estate business?
Real estate business refers to activities which involved buying, selling, renting, leasing, hiring, managing and investing in landed properties.
Realtors, agents, brokers act as intermediaries between landlords, tenants, government, individuals, religion bodies, businesses and NGOs to facilitate exchange. These intermediaries assist through the process of buying, leasing, selling and renting of landed properties.
Careers in real estate business
They are many careers in real estate business, some of which include: real estate agent/agency property development , real estate brokerage, property/asset management, real estate investment etc.
Real investment refers to acquiring and developing properties with expection of making profit when reselling, renting or leasing.
It also means buying real estate shares from capital markets with expectations of making profit when the value of those shares appreciate
Property development means erecting buildings and selling or renting them out for profit motive.
While property management mean maintenance of assets, keeping record of business transactions or the total upkeep of properties by third-party hired by the landlord
Guides on how to start up a real estate business in Nigeria
Real estate business is a big industry, they are many product lines, each one of them has potential to make you a million, the industry is saturated with intense competition and challenges but there is Always a way out. The solution you are ready to provide will definitely bring you great fortune. Read carefully through the guides.
1. Conduct feasibility studies
Embark on a thorough research about the business, gather accurate information as much as possible. Get connected with those who are into the business and ask questions. Understand the product line such as property management, real estate agency and investment. Each one of them comes with peculiar requirements, financial obligations, ethical standards, laws, rules of engagement etc. Feasibility studies will give you insights of what the business is all about and you will know whether you can actually meet up. You can take your time to read Nigeria real estate laws and regulations
2. Choose a niche
Real estate is very wide, they are many careers in real estate business, you can pursue two or more Careers but it's advisable you start with one first, when you get conversant to the industry, you can add more careers or product lines.
After conducting feasibility studies, you should be able to know about the product line, career or niche that aligns with your personal goals, passion, ambitions, start up capital, laws and economic policies then, you can arrive at chosen a perfect niche for yourself.
3. Meet the start up capital
Real estate business is capital intensive and requires huge amount of investment depending on your chosen niche and how you intend to start.
However, there is an opportunity for those who do not have enough capital to earn from this industry either as agents, brokers. With an office space, you are good to go. Without office, you can as well tap from this industry as freelance agent but you most partner with existing real estate firms in oder to build trust if not, it will be difficult for you to close deals because of trust issue as a result of fraudulent activities recurring in the country.
4. Get trained
Jumping into any business without prior and sufficient experience is very risky, it could cost you a lot. Real estate industry is big, they are many ups and downs that need critical attentions from experts. It is a business that can earn you millions of naira over the night but you must have to establish yourself first before achieving such heights.
Real estate business is very competitive and challenging, it's advisable you run internship, get employed, consult or partner with any existing real estate firm. You can as well attend seminars, conferences, professional schools and also reads books that are peculiar to your industry. This will equip you with maximum skills to excel in the business.
5. Register your business
For your business to have legal backup and public trust, proceed to Corporate affairs commission (CAC) for your business name registration.
Before you make a move, choose a perfect name for your business, the name must be easy to pronounce, recognizable and relate to your industry. Also decide the kind of organization you intend to start with. Either as sole proprietorship, partnership, limited liability company etc. Each of of them has parculiar requirements.
6. Build the right brand
A business brand has a lot to offer and it shouldn't be neglected. All successful businesses out there have unique brands.
Attributes of a business brand include: logo, trademark, slogan, colors etc. Build a brand that communicate your business to your prospective clients and distinguish your business from others.
7. Choose a strategic location for your real estate business
A good location also make a lot of impact in a business. Choose the location that is best for your career and industry. A location that will be accessible, has a good network connection, regular power supply and a location that you will be able to maintain financially.
8. Kick off with a realistic business plan
After all the above categories have been achieved, you can now prepare a well and potent business plan.
The essence of the business plan is to guide you through the process of executing or conducting your business activities.
Ensure you include your mission and vision statement, your corporate objectives, goals and target, the source and use of finance, marketing strategies and policies, human resource management and renumeration etc. work towards achieving every and each one of them.
9. Promote your business
If you don't really want your effort to be in vain, you must promote your business. The ensence of business promotion is to reach larger audience, make and retain customers, maintain good public image and add to your product's quality.
Promotional mix includes: advertising, sales promotions, personal selling, word-of-a-mouth, discount etc.
Some of the advertising media used in Nigeria include: radio, television, newspapers, billboard, bulletins, magazines, social media, internet, caps, t-shirts etc. Choose the one that is best for your real estate business.
10. Build your online presence
Nigeria is one of the largest users of social media worldwide. Our population is massive and majority of this population can be found on social media.
We all know the power of social media. Make good use of it. Set up professional business pages and run consistent ads.
Also set up professional website, mobile business apps to have consistent connection and engagement with your customers.
Learn ICT skills and get updated with the trends. You can also employ ICT experts to handle this aspect for you depending on your capabilities. You must not achieve all these before you start, start now with what you have and add more later as means of growing.
Tips on how to become a successful real estate intermediary (agent, realtor, broker)
- Be informed: have a good knowledge of the trends in your industry as well as your business environment. Know the streets, junctions, hospitals, markets, gym, shops, sport centre's etc in your neighborhood because you are going to answer your clients a lot of questions as they approach you to transact business.
- Respond promptly to your clients: do not delay in responding to their requests. Return their calls, reply to their messages, comments etc either through emails, social media, text messages or calls
- Be reliable and available: biuld trust with your clients and give them enough reasons to comeback and connect you with others. Provide them with the kind of land, apartments, shops etc they want, don't extort or cheat them by collecting more than what you deserve and always make yourself available to them when you are needed.
- Leverage on technology: make good use of technological tools available for you.
- Caring and expert advice: your relationship with them is formal but you go extra mile to show you care for them but not just their money. Give them good advice and information, do not mislead them.
- Have a deep knowledge of the property: know the conditions and worth or value of the property you're in charge of.
TERMS IN REAL ESTATE INDUSTRY IN NIGERIA
Each industry has unique terminologies or jargons. It is important you get used to these common words used in real estate business.
- Landlord - someone who owns a property and rent or lease it out.
- Tenant - someone who occupies a property and pay rent to the owner.
- Real estate agent - someone who facilitate transaction between buyers and sellers of properties.
- Real estate broker-an expert that represent either buyer or seller when transacting business
- Property - land or building
- Property listing. Property that is ready or available for sell
- Inspection-physical examination of a property to determine its condition
- Lease- an agreement between landlord and tenant that allows tenant to occupy property for a specific period of time usually from five year and above.
- Rent- money paid for occupying a property.
- Real estate developer - a person that develops real estate and sells them
- Valuation - the process of accessing the value of a real estate
- Real estate appraisal - the process of determining the value of a property for the purpose of selling or mortgage
- Property rights - the legal rights of ownership and use of a property
- Deed of assignment - a legal document that transfers ownership of a property from one person to another.
- Title document - the legal document that prove ownership of a property
- Property insurance - protection against lose or demaged properties
- Comercial real estate - properties such as shops, office building, malls, markets etc used for commercial activities
- Residential real estate - properties such as houses, apartments, townhouse etc.
- Industrial real estate - farmlands, factories and warehouses etc.
- Mixed used real estate - the combination of both commercial, industrial and residential properties
- Realtor - a licensed professional who represents either buyer or seller
- Real estate manager - someone who keeps record of transactions, prepare documents, maintain properties on behalf of the owner
- Real estate firm- an organization that does real estate business
- Certificate of occupancy (c of o)- a legal document that gives one right to occupy a property
- Fractional home investment - the process in which small portion of property is been purchased to be shared among multiple investors
- Land use act- a Nigerian law that regulates the ownership and use of land
- Developmental levy- a fee paid to the government to develop land
- Agency fee- commission paid to agent either by the tenant or landlord whom he represent
- Building plan- proposed layout and design of a building
- Rent agreement- a legal document that spells out terms and conditions agreed by landlord and tenant
- Mortgage - loan taken to obtain a property
- Property management - selling, renting, maintening, taking records of a property by a third-party
- Real estate law- laws that governs the conduct of real estate
- Real estate market- the total conditions of real estate industry in a particular location
- Real estate bubble - the rapid increase in the value of assets follow by sudden fall in the prices
- Real estate syndication- the act of pooling resources together by two or more investors in order to invest in real estate
- Real estate speculation - the act of purchasing a property with the thought of appreciation in the value of the asset
- Real estate portfolio - the collection of properties owned by companies or individuals
- Real estate investment - the act of purchasing properties or buying real estate shares for the purpose of making profits
- Maintenance fee- money paid for upkeep and maintenance of a property
- Property tax- money paid to government agencies on the value of the property
- Real estate investment trust - a kind of investment that allows investors to pool their resources together for investment purposes
- Purchase agreement - a legal document that spells out terms and conditions of obtaining a property
- Land receipts - a document that shows proof of payment for the purchase of land
- Survey plan- a document that shows boundaries or demarcation and measurement of land
- Land certificate - a legal document that shows prove of land ownership
- Capital appreciation - the increase in the value of a property over time.
Conclusion
Nigerian real estate is indeed profitable. If you intend to secure your financial freedom, just make a step today. Real estate business is a business that can give you freedom and future but you have to be aware that nothing good comes easily. You must work hard for it.
Choose a niche that is best for you, gather enough information and also build your network with people. Keep learning and be committed to succeed.
I hope this is helpful!!!
