A Real estate business is the next most profitable business after oil and gas. There is a lot of money in the Nigerian real estate market, whether you are investing in the market or you become an agent.
Starting a real estate business like every other business comes with challenges and a lot of tough competition from the many people in the business, but if you focus on building a very unique brand, you will become a top dog in the business.
What is Real Estate Business?
A real estate business is a business that deals with buying, selling, leasing, management, and investing in real estate.
What are the types of real estate business
Real estate is divided into 4:
1. Commercial properties: examples are warehouses, office buildings e.t.c
2. Residential properties: examples are townhouses, private residences, and lands.
3.Industrial properties: examples are mines, factories, farms
4.Land: This is the easiest real estate in the market.
How To Start a Real Estate Business / Become a Real Estate Agent
To start a real estate business, you must have a knowledge of the real estate business, which involves the process of selling, buying, or renting of a property, building, land or home. As a real estate agent, you job is to assist businesses, investors, and homeowners to buy, sell or rent any type of property.
To start and become successful in the real estate business in Nigeria, you need to:
1.Have a specific business plan:
In order to conquer and dominate the real estate market in Nigeria, you will need to have a strategic and specific business plan.
If you want to become an investor in the real estate market, you will need to start small, and keep planning & implementing your plans as you grow. This will help you build your investment portfolio in the Nigerian real estate market.
2.Get a training on Real estate Business:
To venture into the real estate business, and make profit, you will need to get trained. You can be trained in an already established real estate company, as an agent or intern, you can also get trained by attending workshops, or seminars, organized by a real estate agency or institute.
In these trainings, they focus on building your communication skills, that will help you build a relationship with sellers, buyers, brokers and real estate companies.
These seminars will also keep you abreast with recent happenings and innovations in the real estate sector.
3.Build your brand:
Building a unique brand is very important tool if you want to build a successful business, especially an online business in Nigeria where you want people to invest millions of naira.
To build a unique brand, you must invest in creating exceptional brand identities for your brand (like logos, websites, ads e.t.c)
For your brand to be trusted, you need to build a relationship with your customers by connecting with them on a personal level, and giving them enough value for their money.
4.Register your business:
If you really want to gain trust, and take your business to the next level, then you should legalize your business by registering it with the Corporate Affairs Commission (CAC). If you can’t afford to register it as a Limited liability company (LLC) at the initial stage, you can register it as a business name, and upgrade it later.
Apart from registering your business on CAC, you should also identify with the Professional real estate bodies in Nigeria like Association of Estate agents in Nigeria (AEAN), Real estate developers association of Nigeria (REDAN), know the rules and regulations guiding this body, and make sure you are not going against the laws.
5.Get the required starting Capital:
If carried out a proper market research, you would know how much it would roughly cost you to start a real business, depending on how big you want to start. If you are not Strong enough financially to personally fund the business, you should start sourcing for funds.
Seek investors, especially equity investors that can give you enough funds to start and grow the business, especially since Real estate business is very capital intensive and requires a big amount of investments.
6.Execute your business plan:
Executing your business plan is final process of starting your real estate business. This execution process might include getting an office place, setting up your website, start advertising, networking e.t.c. For your business to succeed, you must properly execute your business plan, this also means you must plan your day to day activities, add and remove from your plan as you grow.
To succeed as a Real estate agent in Nigeria, you must:
Respond quickly to leads and always be available.
Make use of technology, take your business to the internet space, advertise your business on social media and YouTube.
Get exposure: Know the latest happenings in the real estate industry, learn everything there is to know about the business.
Act professional always and be reliable
Create a relationship with your customers, and communicate with them regularly.
How to make money from the real estate business in Nigeria
You can make money from the real estate business in the following ways:
1.Becoming a real estate agent
2.Becoming an investor
3.Becoming an estate developer
4.Buying and selling Lands
5.Buying and selling house
6.Putting your house or land on lease
7.Renting out your apartment
8.Start a real estate company
FAQs about Real Estate
1.Is real estate business profitable?
Real estate business is one very profitable business in Nigeria today, apart from oil and gas business
2.Do I need a real estate license in Nigeria?
Yes, you need a license to venture into real estate business in Nigeria it is mandatory.
3.What is the most common type of real estate in Nigeria?
Residential properties are the most common type of real estate in Nigeria, because it consists of housing for families, individuals, communities, e.t.c
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