How To Start And Run A Successful Real Estate Business In Nigeria

Real estate business is one of the top 5 most lucrative business in Nigeria today. Some people believe that the risk in the business outweighs the profit. That is not true. Real estate (land) is a property that doesn't depreciate in value. It only gets better with time. The most important thing in this business is having the necessary papers and certificate of any property your own.


There are several categories of real estate business and they include: real estate agent/broker, real estate/property developer, land flipping, property rent/lease, etc.
You can go into this business on a small or big scale. Also, if you want to start on a small scale, you can actually do so with little or no capital.


Below are details tips on how to start and run a successful real estate business in Nigeria and other countries.



Write a business plan

Every business start-up requires a business plan. Writing a business plan is critical to every business for several reasons which include, giving your business a sense of direction, ability to attract loan and partnerships. If possible, get professional in the field to prepare your business plan and the executive summary.



Carry out feasibility study on the modus operandi of the business in your area

Find out the big players in the business in your area. How do they serve their clients? What laws guide operations in the city/state where you want to operate? Carry out a market research and determine constraints of the business, your prospective clients, their challenges, etc. These questions have to be considered and answered for you to have a clear vision of your direction. Every feasibility study ends with report. Put your feasibility study on a report for future references.


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Register your business and join relevant bodies

Business registration is important in Nigeria. You must register with CAC – Corporate Affairs Commission and get a certificate to operate as a business. There are also associations and agencies that regulate real estate operations in Nigeria. You can also belong to estate developers association like the Real Estate Developers Association of Nigeria.



Source for capital/partnership

Real estate is capital intensive, depending on the scale you want to operate the business. If you want to operate the business on a large scale, you will need much capital. You must have saved up some amount yourself but, if you're not a multi millionaire, you will still need to source for capital.

If you do not have enough it is important that you seek investors. You can look for equity investors  that can give you enough leverage at the start and accelerate growth.
You can also seek loan but, only seek for loan if you are sure of the property. Get the Certificate of Occupancy, get approval from government surveyor/agency and be sure there is no government project or road that will turn your business into a nightmare.


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Buy your property

The properties here include land and buildings. Look for a land that is still in a developing area and not far away from a major road. Some of the things to consider before buying any property include but not limited to: cost of the property,  availability of Certificate of Occupancy, local government/development permits, proximity to a major project/establishment/town, security, topography of the area (flooding and any other form of natural/man-made disasters), electricity, etc.



Create a marketing plan

The most important aspect of today's contemporary marketing lies on referral. Create an effective referral program and, hire experience and zealous marketers. You need to engage online and offline means to promote your business.

Use social media ads platforms to reach more prospect. Also, create a program that will make your property affordable to middle class and if possible, installment payment will help you get more prospects.

You should announce to the real estate demand market that you are in business and here to stay. Announce your arrival in the real estate market with the use of handbills, newspapers, real estate journals, radio, television and as much as your budget can permit to advertise.


Train yourself on how to think strategically about what’s happening in your market and be ready to offer something of value to your clients, no matter where they come from.



Create a website

Website is like the backbone of marketing and can serve as office to offer your services to your prospects. Even when you're sleeping, your website is still there working for you.
No matter how much local marketing you do, you need a web presence to attract and engage online traffic towards your business.

Getting a good website is not a capital investment. It's cheap considering the benefits that comes with it. A good website and  SEO on the website help to usher those traffic and prospective clients right to you, is a crucial foundation of every successful real estate business.

The website should be  functional and interactive, enabling prospective clients to make enquiries, see photos and videos of available options of property when you begin to have them or likely ones that would come up later.


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How you can start Real Estate business in Nigeria with little capital


Partnerships
Partnership with other players in the field or people who are interested in the business is one sure way of starting the business with little investment. Especially if you know how the real estate works and you can effectively manage it, you can partner with someone that has the money and is able to dish out the capital for the business.

Such investors are hard to come by but, you have to try and arm yourself with a killer business plan.


Cloud Funding
You can call for individuals contributions in starting the business. Prepare your business plan and your pitch note. Convince individuals to contribute in funding the business and work out effective profit sharing formula according to the amount contributed by each individual. I had seen such work on other businesses and real estate is not an exception. No matter the amount each person is contributing, it all count.


Create a website where people who are interested can create account and contribute through online channel. They should also be able to view their profit and progress of the business through their individual dashboard. Sincerity is the key here.


Offering a  Service or Skill 
I had seen surveyors, lawyers and tractor owner own landed properties by providing their professionally services without paying any money.  If you offer any service and your client owns many plots of lands, you could negotiate to be paid with a land property and should the service offered not up to the property worth, you could offer to pay the balance overtime.


Mortgage
One can start real estate business using the mortgage strategy. In this method, a small percentage of the total sum is paid and the rest spread overtime while the property is handed over to you. Most times, a mortgage  bank is involved. If the borrower stops paying the mortgage, the bank can foreclose.


In conclusion, real estate business offers great opportunity and it's a business that only gets better with time. You can join with or without capital.