Real Estate business is quite broad and has a number of sub sectors. As an intending startup in Nigeria, you can decide to take on the real estate business and offer all the services in your company. The fact about real estate business is that it is a money spinning machine and can turn you into a billionaire overnight. That’s right. And especially if you can build a company that is involved in the different aspects of real estate. So how to start? Right.
WRITE A COMPREHENSIVE BUSINESS PLAN
The first thing in starting any business is coming up with a good business plan. To help you have a clearer picture of what you’re getting into, you will need to prepare a well written and detailed business plan. Find out how to write a business plan; and depending on the type of business plan you need, I suggest you seek the guidance of a professional business consultant in Nigeria like Dayo Adetiloye to help you with the implementation of your business idea.
A business plan is a written document about your business; which forecasts where the business is going and how you plan to reach that vision. It will necessarily include information about your products and/or services; who your target market is, and how you plan to reach them. It also includes a budget and detailed financial projections and analysis.
A good business plan can open you up to a lot of quality investments from investors, so make sure that as you plan to start up your real estate company in Nigeria; you’ve got an excellent business plan to back you up.
INCORPORATE YOUR COMPANY
After preparing a business plan, the next major thing to do is; getting your company registered with the Corporate Affairs Commission of Nigeria (CAC).
This is necessary, as most investors will want to walk with a company and not an individual. For more information on how to register your company with the CAC; you can look up their official website new.cac.gov.ng or check out my article on how to register your company with the CAC.
Registering your company boosts your customers’ trust in your company and increases the credibility of your profile. It provides legal backing for your business and gives you access to other business openings. Usually, the first step in the registration process is getting a company name and then submitting that to CAC.
Standard charges applies for the process of course.
You can can visit www.dayoadetiloyebusinesshub.com for more information in incorporating your business or call: 08105636015.
CREATE AN OFFICIAL WEBSITE
Once your company has been incorporated, you will need to work on creating a website to fully establish an online presence for your real estate company. Of course, I don’t need to point out the numerous benefits of having a strong online presence as a real estate company in Nigeria now. The benefits are evident based on the fact that the entire world as we know it now( Nigeria included) is on the business. So to put your business out there, you’ve got to be out there. Quite simple.
You may even need to put up a blog too. You can your blog platform to connect with larger audience. Putting up rich and informative content about the real estate industry in Nigeria, elaborate on your products and services, review other useful material for your audience and so on; the benefits are endless.
Developing your products and services
There are so many investment opportunities available in the real estate world, so to start your own company; you may need to either diversify or run a monotony real estate services. Of course, depending on your resources; it is best you start with what you have. And then as your company grows, you may then expand your portfolio. But if you have access to capital and want to start big straightaway, why not?
Let’s take a look at the various sectors of real estate and how to incorporate them into your company’s products and services.
- Real estate agency
This is by far the simplest and easiest to start. A real estate agency or broker acts as an intermediary between buyers and sellers of real estate properties. An agency’s major duty is to find sellers of property and source for buyers who want to buy the property. In turn, the real estate agency receives payment in form of commission, which is paid as a percentage of the sales of the property. For example, if you broker or can sell a property of N2 million, the company gets a percentage( usually ten percent) of two million; which is N200,000 in commission.
In this case, the company has to source for buyers for a seller’s property upon signing a listing contract with the seller. The agency’s duty is to find a seller with the highest price offering for the real estate property on sale.
So, how can a real estate company meet its sales goals? Here are a few;
- List the property for sale to the public; using all available media.
- Place a “for sale” ” for rent” or ” for lease” sign on the property; with clear contact details.
- Run rigorous ad campaigns on digital media and especially social media.
- Real estate/property development
Real estate development involves coordinating all the activities of converting ideas from paper to real property. Estate developers usually take the biggest risks in creation or renovation of properties and receive the biggest rewards.
To get into this aspect of real estate; you will be required to work with so many counterparts, such as surveyors, architects, engineers, inspectors, lawyers, accountants, building contractors,leasing agents, business developers and many others. However, it is worthy of note that the real estate development business is pretty capital intensive; although starting with limited capital is very possible.
Real Estate Development typically involves the following strategies
- Buying and acquiring lands
- Determining the marketing strategy for the property
- Create and develop a building program and design
- Obtain the necessary public approval and adequate funding
- Start the construction process
- Manage the properties, rent out or ultimately sell off.
A property development agency may not necessarily carry out all of these processes; they sometimes undergo some of the process and then leave off from there. For example, an agency could just decide to acquire the property, get the necessary plans and permits, and then sell the property with the plans and permits to a builder at a premium price.
- Joint venture
Joint venture in real estate involves a practice where a land owner provides a piece of land as equity, in turn a real estate development agency or an investor provides capital. In this way, both the land owner and estate development agency/ investor team up to set up an estate as joint partners. So many real estate businesses are enjoying major profits from joint ventures in Nigeria nowadays. It is by far the best real estate practice as far as profits are concerned.
Usually, the investor agrees to finance the construction of a project; usually units of houses, like duplex, terraces, block of flats, bungalows etc. Upon completion of the project, the investor pays the land owner from the sales revenues and keeps whatever is left; as must have been agreed in the joint venture agreement.
This is another sector in real estate business that has huge profit potential. It’s quite simple and just involves buying of lands and quickly reselling to make profits. You can start small by buying just a plot of land and then grow from there ( I’m one for little beginnings) into buying tens of plots and acres of lands and keep selling.
This one is quite easy to start, simply acquire a piece of land in a great location and lease it out to people and businesses for makeshift use. And just like a typical rental service; you will be paid monthly for your land, while it appreciates for future sales. This one’s pretty cool, I mean it’s like lending money and receiving double interest; plus you still get to keep your property, cool right?
You can lease your land to individuals for makeshift purposes, you can lease to other businesses and also to churches.
Here’s another one. Buy a land and develop it. You can build a house and put it up for rent and get paid for in rent every year for a lifetime. You can also decide to buy lands in a good location and develop it into a shopping complex or even hotels; whatever suits that particular location is just great. With a shopping complex in a great location, you are sure to make a whole lot of profits from rent. You could also get a land in a corporate environment and develop it into an office complex; this is also very lucrative depending on the location.
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