How To Make ₦10M Per Deal In Real Estate Business In Nigeria – (Urgently)
Making 10M per deal is very easy, just put in the work and act smartly. If there is any business in Nigeria that is truly lucrative and extremely profitable, it has to be a Real Estate business. Most of the top billionaires in Nigeria are real estate investors. The business is a money spinner to the highest level. Real Estate is currently booming in Nigeria and people are making millions in it. Today, we want to take a closer look at the business and see how you can invest in this sector of the economy (irrespective of how much you have) and make a serious profit.
One thing very good about the real estate business in Nigeria is that the investment opportunity is so diverse that there seem to be something for everyone. Anyone who wishes to invest can invest whether he has thousands or billions of naira, you can even invest without a dime in your pocket. Let us see how it works.
This is the first article I am writing on the real estate business on this website. So, I will try to highlight some of the best investment opportunities in the industry, and expand on the topics in the subsequent articles.
Profit Potential in Real Estate Business
Before we proceed, we want to look at the profit potential in the real estate business in Nigeria. I bought a plot of land at Lagoon Court by Euchomes in the IbejuLekki area of Lagos State in 2016 where I had wanted to develop a small hotel. I paid ₦500,000 for the land excluding some documentation and Development Levy.
In 2022, I changed my mind and decided to sell it. When I asked the estate agents how much property was going in that area, they told me the current price is 5M Naira. If I had bought five plots that were offered to me for 2.5 million then, I would have made ₦25,000,000 from that single transaction!
Just like that, 500,000 t0 5 million gain in 6 years for a greenhorn like me who was not in any way into real estate investment then. Then imagine what the professionals who know the ins and outs in the business must be making. I also know a petty medicine seller who is now a multi-millionaire through estate investment he started a few years ago. And he started with almost zero capital.
I know how some of the millionaires in the industry started. Some of them started as small real estate agents in a kiosk. Today, they control the finest estates in Lagos, Abuja and other major cities in Nigeria.
Investment Opportunities in Real Estate
Investment opportunities abound in real estate. Start with what you have. As you grow in the business, you can expand your portfolio. Or you can start big straight away if you have access to capital. In this article, I will only deal with real estate categories that are peculiar to Nigeria. Suffice to say this article is made especially for beginner real estate entrepreneurs. Here are some of the areas you can invest and make your own money without tears.
1. Land Flipping
This means buying land and quickly reselling it for profit. This is one of the smartest investments in the industry and requires no effort whatsoever. Just your money and knowledge and you are good to go. You will need a substantial amount if you want to make hundreds of millions but you can start small by buying just one plot and grow to buy tens of plots and acres of lands and keep selling all year round.
2. Open Space Leasing
This works in a simple and unique way. Buy a property in a good location and lease it out for makeshift use. You can lease it to churches or business that wants to develop a makeshift outlet such as a car wash and mechanics. They will be paying you the monthly range while the property still appreciates for future sales. It is like borrowing money for someone and getting paid double interest and still getting your money back.
3. Real Estate Agency
This one is the simplest and easiest of them all. It is not an investment but service rendering. How does it work? Go round and look for properties to let and for sale, advertise your service and help secure clients for the property owners, you will be paid a percentage as commission based on the amount the property is sold or rented. You can start with little or no money and if you are smart enough, you will grow to become a giant realtor.
4. Property Development
This is where the big guys in the industry are doing their stuff. They acquire properties in nice locations, develop it into luxury apartments, commercial structures, etc and sell at a very high-profit margin. If you spend N200 million to develop a property, be sure you are going to sell for N400million.
5. House/Office Rent
Build a house and put it up for rent, get paid all year for a lifetime. Be a Landlord or Landlady, relax and watch and enjoy the tenant rent throughout your lifetime.
