Starting as a real estate developer, a broker, or an agent involves almost the same strategy but slightly different. This article will explain how to start real estate business in Nigeria, and what each of these positions entails.
The real estate business is one of the most profitable businesses in Nigeria today. With the growing demand for land and buildings, now is the right time to venture into the industry.
Starting a real estate business comes with many challenges. Still, with the right brand and determination, you should be able to make a lot of money in this industry, whether as a real estate developer, a broker, or an agent.
What is Real Estate?
Real estate means property, which includes land and buildings together with immovable properties of this nature, such as roads, water, structures, etc. So put, real estate is land and other properties and resources.
Real estate is a property owned by individuals attached to a piece of land; people can use this property for residential, industrial, and commercial purposes.
What is Beal Estate Business?
The real estate business is buying, selling, investing, and managing real estate properties. Positions in the real estate business include a real estate developer, a broker, or an agent. Each work is highly profitable, considering the growing demand for these services.
Who is a Real Estate Developer?
Real estate developers work in land development, one of the most challenging aspects of the real estate industry. They buy large plots of land and develop them into residential communities, industrial complexes, shopping malls, and other commercial structures. They occasionally buy run-down properties and renovate them into modern retail centers or apartment complexes.
Developers must be able to identify the potential of a specific property. After deciding on a potential development site, they must raise enough seed capital to purchase the land. Next, real estate developers collaborate with architects to design the proposed development. The developer must also hire a contractor to construct the project. When the construction is finished, the developer’s own real estate organization or a real estate broker sells or leases the houses or other buildings.
Who is a Real Estate Broker?
A real estate broker is a licensed professional who helps people to buy, sell, and transfer property. They use their real estate expertise and knowledge to help clients with paperwork, decision-making, and legal compliance.
Brokers can work for themselves, starting their brokerage and hiring other real estate agents. They frequently supervise a team of other real estate professionals and assist them in writing, editing, and submitting property contracts and purchase offers. Real estate brokers strive to provide their clients with a positive buying or selling experience and excellent customer service.
Who is a Real Estate Agent?
A real estate agent is a licensed professional who facilitates real estate transactions by bringing buyers and sellers together and representing them in negotiations. Real estate agents are typically compensated entirely by a commission (a percentage of the property’s purchase price), so their income is based on their ability to close a deal.
In almost every state, a real estate agent must work for or be affiliated with a more experienced and licensed real estate broker (an individual or a brokerage firm). In addition, real estate agents typically focus on commercial or residential properties. As a result, they have different responsibilities depending on whether they work for the buyer or the seller.
Real Estate Business in Nigeria
The real estate business has a long history in Nigeria. Over the years, the industry has become a gold mine, and many individuals are making quite a lot of money from it.
As the Nigerian population increases, so does the need for residential apartments, office space, and commercial outlets. As a result, people are constantly looking to buy or rent lands, buildings, and structures, and that’s where the real estate industry comes in. Real estate businesses help these people to secure these properties according to their tastes and needs.
You wouldn’t be surprised if I told you that the demand in this industry is always high, making it a good option for those considering starting their own business. Now, how to start real estate business in Nigeria is the real question here. Let’s dive in!
How to Start Real Estate Business in Nigeria
Before you venture into the real estate business, knowing how the industry works is important. Know the needs of the people around a particular area and which part of the industry has less competition. These will help you decide whether you want to start as a developer, a broker, or an agent. It will also guarantee your success in the industry.
Once you decide on a position, it is time to start working. Here’s how:
Create a Good Business Plan
Creating a strategic business plan will help you leave every opportunity untouched. In addition, this business plan serves as a step-by-step guide on how you want to implement your real estate business successfully.
Another importance of a business plan is that it’ll help you secure a load or grant should the need arises. A loan company will only pay attention to you with a good business plan. The more appealing the business plan, the more chances you have to secure a loan.
Build a Unique Brand
Your business needs branding like you, and I need water. Brand credibility is essential in building a successful business in Nigeria, especially when millions of Naira are at stake. Branding is a process used to develop and influence a customer’s presence, perception, and feelings upon interaction with your business products and services. A company’s brand is the reputation it holds amongst its customers.
Your real estate brand should be able to communicate who you are, what you’re about, and what you have to offer. A business that can express its brand and invest in it will usually successfully provide excellent products and services. This is simply because that business has figured out how to become important to its customers and how they can continue to benefit their lives.
Legally Register Your Business
No one will take your business seriously unless it is legally registered. Registering your business will win your customers’ trust. Register your real estate business with the Corporate Affairs Commission (CAC) to legalize its existence. You can either register it as a Business Name or as an LLC.
Also, keep an eye out for the rules and regulations governing professional real estate bodies in Nigeria to ensure that you are not breaking the law. Some well-known real estate professional institutions to keep an eye out for are: the Real Estate Developers Association of Nigeria (REDAN), the Association of Estate Agents in Nigeria (ASEAN), and the Nigerian Institution of Estate Surveyors and Valuers (NIESV).
Raise the Required Capital to Start
Suppose you have built a meaningful business plan, as mentioned in step 1 above. In that case, you should have an estimate of how much money you need to start your real estate business. In case you need to increase your savings and financial capacity to get started, you can look for alternative funding sources such as loans.
The real estate business is highly capital-intensive and requires significant investment. If you need more, you should look for investors. For example, you can look for equity investors who can give you enough leverage to get started and help you grow faster.
Start Implementing
The final step on how to start real estate business in Nigeria is to put your plan into action. Unfortunately, a good number of businesses in Nigeria fail due to poor implementation. Therefore, implement your real estate business according to your business plan. Implementation refers to your day-to-day business operations. This includes marketing, networking, sales, customer service, human resources, etc.
At first, you may do everything on your own, but you will need some assistance as your business grows. For example, you should hire a marketer, a human resources officer, a customer representative, and other professionals your business needs to operate smoothly. But baby steps, don’t rush it.
Conclusion
To become successful in the real estate industry, one must be ready to meet the challenges that come with it. Remember that the real estate industry’s success does not happen overnight. Instead, it is a long-term game that requires a great deal of patience.
