How to start a Real Estate business in Nigeria
On Friday, September 18, Wonder Double Global Investment, a leading Real Estate and Construction company in Lagos State held an online seminar for a group of young entrepreneurs interested in Real Estate business and so many ideas were shared by Dr. Mrs. Funke Sobowale and Mr. Steven Oladokun; the guest speakers. Many of the discussed ideas can be helpful and useful for many other young, innovative entrepreneurs.
Real Estate has been one of the most profitable and growing businesses in many parts of the world, including Nigeria; you can make a lot of money starting this business, whether as an agent or as an investor. Starting your own Real Estate business is a good career option that comes with a lot of difficulties and challenges. The market is a well established one with tough competition from numerous new and established players. However, do not be intimidated by the competition rather focus on building a unique brand that stands out amongst the rest.
In cities like Lagos where the population is ever increasing, the demand for accommodation and office space is alarming. This is why it will continue to remain lucrative as time goes on. For example, if you are able to secure the sale of a property worth 30 million Naira in Lekki or any part of Lagos, you could earn as much as 3 million Naira (at 10% commission on selling). As a matter of fact, Nigerians are always in need of residential apartments, corporate apartments for their offices, and commercial outlets to buy, rent or lease.
This unavoidable demand for accommodation for different purposes has created many opportunities in the industry that has been ranked as the 5th largest contributor to the GDP of Africa’s largest economy. However, In order to be successful in this industry, one should have good knowledge and information to survive. This basic guide will equip you with the knowledge and information you need to acquire to start your own very successful Real Estate business in Lagos or any part of the country.
Steps to take in starting Real Estate Business
1. Have a strategic business plan- A business plan is vital for any real estate investor, and one of the best advice you’ll get in the housing market is to start out small and plan! This step is especially important if you’re planning on becoming a real estate investor for the long term. In this case, you want to grow your real estate investment portfolio strategically.
Real estate investing is just like starting any other career in which you can’t start on a whim without having a specific business plan in mind.
2. Build a unique brand- To turn your real estate business into a trustworthy brand, you need to give your customers more than enough value for their money and build a relationship by engaging with them on a personal level. Also, set your real estate business apart from the competition by investing in premium branding identities such as logo, website, adverts and more.
3. Legally register the business -If you really want to make this business to the highest level possible, then you have to legalise its existence by registering the business with the Corporate Affairs Commission (CAC). Registering as a Business Name with CAC is enough at this stage if you can’t afford to register it as a Limited Liability Company (LLC).
4. Raise the required capital to start — Real estate business is very capital intensive and requires a huge amount of investment. 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.
5. Get started and get working — To be successful in the Real Estate business, you must be prepared to face the challenges. At a personal level, and as a business owner, nurture your ambitions and become a goal-oriented and organised person. Keep in mind that the real estate sector is not about achieving instant success. Instead, it is a long game, which requires a lot of patience.
6. Have an online presence — The world seems to be controlled by technology and you won’t be doing yourself any good by not leveraging the available tools.There are many things you can do: Make YouTube videos if you have to, pay for advertisements, have active social media accounts.
Create ads that are targeted at people who need your services. These things tell your clients you take your job seriously. These are just the basics and Wonder Double Global Investment will be focusing on more interesting topics for the Real Estate enthusiast in their periodic lectures and seminars.
