How to start your real estate business in Nigeria small and grow the business into a multi-million naira company.
In my last article, I talked about real estate business as one of the lucrative businesses you can go into that can turn you into a millionaire in Nigeria.
Today, we’ll be talking further on this business especially how you can start with no money. What I usually call a step by step guide.
Truth be told the real estate sector is not where we want it to be in Nigeria yet because for now, only a few people are in the business (not enough) compared to the demand for houses.
This is why an article like this is very important in terms of bringing more interested people into the business directly or indirectly.
Is Real Estate Business Profitable?
This is a brilliant question because it is useless to go into a business that won’t yield profit.
Real estate business is a profitable business in Nigeria because at first, not many people are into the business. Asides this fact the real estate sector in Nigeria is a multi-billion naira sector.
Another reason why the real estate business is profitable in Nigeria is that landed properties are easy to buy and they are relatively cheap. All you needed is to buy at cheap rates and sell when the time is right.
But let me explain with this illustration.
Mr. B won a lottery for a game he played (Bet9ja). He won a whopping amount of 3 million naira.
Mr. B deciding what to do with this money went to a remote town in Ogun state and bought 10 acres of land. He fenced the land and then started selling to individual buyers in plots.
By the time Mr. B was done selling all these lands, he made another whopping sum of 3 million naira which means the total money he got from the sales of these lands was 6 million naira.
Did Mr. B make a profit from the real estate business he did?
Yes, he did and he did bountifully. So you see this is how profitable real estate business can be in Nigeria.
How to Make Money from Real Estate Business in Nigeria
There are basically 3 major ways you can make money from real estate in Nigeria now and they are by:
A. Running online real estate business
B. Investment opportunities
C. Becoming a real estate agent
How do I Start an Online Real Estate Business?
This is basically using online platforms to bring customers to your real estate clients and make money in the process.
A. Start a Real Estate Blog
You can start a blog on real estate educating buyers that want to buy lands and houses in Nigeria and as time goes by you can drive the traffic to a real estate company for them to buy lands or houses.
These real estate companies will pay you a certain percentage when traffic from your blog start buying land from them.
This is the major method I know in terms of starting an online real estate business in Nigeria. Also, asides from making money from this major method you can also make money from AdSense and other affiliate links on your blog.
B. Advertising on Social Media
This is when you use social media apps like WhatsApp, Facebook, and Instagram to make adverts and convince people to buy properties from a certain real estate company.
I have a lawyer friend who his currently doing this as a side hustle and she is making money on the interest and commissions.
C. Using Buying and Selling Sites
Sites like Jiji helps you in terms of giving you a platform where you can meet buyers. Last year when I wanted to change my apartment many of the agents I met that took me to houses were met on Jiji.
I simply searched for real estate agents on Jiji and boom it appeared. Asides from this, I also saw houses and land that was available for sale at the time.
You can use a site like Jiji to drive in traffic to properties you want people to buy. Imagine getting 10% of a 3 Million naira house you sold.
This money can also go a long way in terms of taking care of your expenses.
How to Start Real Estate Business in Nigeria
1. Write Real Estate Business Plan
Writing a real estate business plan is really the first step to start a real estate business in Nigeria. And this is because you need to know what market you will be doing the business with. Is it the rich or poor or the middle class. All this will be in your real estate business plan.
A real estate business plan is basically about how start your real estate business from thr ground up. It will entail how much capital if any is needed to start your real estate business, nature of the real estate business, prostects of the real estate company and more.
So it is very important to write your real estate business plan before starting your real estate comapany. You can write this business plan yourself or get a professional to write it for you.
2. Start as a Freelance Agent
Starting as a freelance real estate agent is very important if you’re seriously thinking of starting your own real estate company or business soon in Nigeria. You don’t want a 9 – 5 daily job as this will restrict you and your movements.
You want a job that allows you to dictate your own time, place, and how much money you want to make.
As a freelance real estate agent, you’ll also be able to work with many real estate companies so it’s now going to a matter of who’s the highest bidder (the real estate company that can pay you more).
Asides all this, this period also helps you to gather customers and clients for your own real estate company in advance. Remember the main aim here is to start your own real estate business with no money so you’ll need all these contacts to patronize you easily without spending money on adverts.
How to Make Money as a Real Estate Agent in Nigeria
To do this, you’ll need to register with any real estate company of your choice as an agent. This might come at a cost or it might be free it depends on the real estate company.
After registering as a real estate agent and you bring a customer to buy a property you’ll be entitled to a certain percentage at which you sold a property.
3. Sell Land for Clients
You may say how are you going to do this?
You don’t know any rich person and you cannot even market yourself not to talk of marketing a property.
Well, from what I’ve experienced getting your first customer is always hard but after getting your first customer the rest will be easy for you.
To help you overcome all these fears the first thing you should do is to look for materials that can help you develop in this field. You should also read our article on:
Because it will help you understand the rich people in Nigeria and how they think. Then source the internet (blogs and YouTube) for more guidance on this.
One of these influencers I know that can teach you how to close a deal is Dan Lok. There are many others on YouTube but he stands out for me that’s why I’m nominating him first.
Also asides this learning part I’ll also recommend you use more of social media to interact with customers that are interested first as this reduces the tension of talking one on one.
Immediately you’re able to convince a customer and he buys a property from one of your real estate companies and you’ve been paid your money the next stage can come into place.
4. Register Your Real Estate Company
The last time I asked how long it takes to register a company in Nigeria I was told it takes 21 days but now it takes less time. So the earlier you start the registration of your company the faster your company comes to life.
Why You Need to Register Your Real Estate Business
Real estate business is a business that involves lots of money if you don’t register as a company a lot of people may not take you seriously some may even think you’re a fraud and with this, they will not buy properties from you.
Find more answers as to why it is necessary to register a real estate company from my lawyer. He told me that it will be hard for you (if you don’t register) to also sue in an event that someone jilts you and so on.
In essence, the advantages of registering your real estate company business here in Nigeria outweighs the disadvantage.
But while you are in the effort of registering your company you should continue your freelancing and continue to make money on it.
5. Buy Real Estate Properties (Using Profits)
Now that you have registered your business as a company and your company is now a living entity you can now start buying properties (houses and lands).
My advice here is to start with whatever capital you have in buying properties. Do not loan money to start no matter how little you need as this can put your company in jeopardy right from the start.
Rather buy cheap lands and resell for a start. You can start by buying cheap land in your village and simply resell or make more money by helping sellers to sell their properties for a certain percentage.
Then as time goes by you’ll be able to buy the expensive and luxurious properties.
6. Get Official Location
At this stage, you need to look for a good location and set up your company if you’re really passionate about creating a brand in the real estate sector in Nigeria.
But be careful about this. Remember what I said about starting small. Do not spend all you have made in furnishing and employing staff for the company.
The key thing is customer satisfaction not how luxurious the company looks (although this also plays a role).
7. Real Estate Business Ideas
A. Buying and selling lands
Buying land in cheap areas and selling them at higher rates to buyers.
B. Buying and selling of properties
Buying newly or old houses and selling them to customers.
C. Buying and selling of building materials
Selling of building materials like iron rods, different types of cement, sharp sand, pipes, pop, and the likes.
D. Consulting & Maintenance
Giving advice to intending house owners on how to build their houses with the latest techs and materials.
E. Building of Houses
(As a developer) Virtually everything on real estate business and in a few years your company will worth millions of naira. All this is possible if you believe in yourself and you are courageous to start.
8. Investment Opportunities in Real Estate Business
The only way you can make money from real estate business in Nigeria without being active in it is by investing – simply becoming an investor.
I’ve done this before and I made money from it. I simply invested money into a real estate company to help them buy properties and resell and at the end, I was paid my initial capital and return on interest
Just in case you don’t understand how it’s been done. Here’s the breakdown.
Let’s you have #50,000 just wasting in your bank account, you can invest the #50,000 into a real estate company at the end of 30 days you can be paid #55,000 with an ROI (Return on Interest) #5,000 naira.
This is one of the best investments so far if you can invest #400,000 upwards.
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