How To Begin A Real Estate Business in Nigeria 6 Crucial Steps
The shelter will remain one of the basic needs of every human, and this makes real estate a thriving business in any part of the world. Many people seek to begin a real estate business in Nigeria, but they cannot profit and scale their business because they don’t have the right structure or experience in the market. Profiting from real estate is both financial and emotionally gratifying – you know you’re giving people access to quality accommodation that will comfort them while you’re also getting paid for it. Before we venture into the steps you need to take when you want to begin a real estate business in Nigeria, let’s discuss the real estate market in Nigeria, its growth over the years, and the entry points for interested real estate investors. Why Start Real Estate Business in Nigeria? The real estate business is a growing market. According to Property Deal Zone, Nigeria’s real estate market has a value of N59 trillion. This is four times and more than large as the Nigerian stock market with a market value of around N12 trillion. Homeless World Cup insists that there are about 24.4 million homeless people in Nigeria. This number accounts for over 10% of the country’s population. While poverty might be the underlying cause, all shelters don’t need to carry the same form of luxury, as people with less financial strength cannot make a purchase. The truth remains; more people are seeking to purchase their own houses wherein they don’t need to pay any more rents or share certain utilities. And with the population increasing and people establishing new businesses, those who move fast in this business will take all the rewards. With property rates surging, now would be a good time to take begin a real estate business. However, you need to ensure you bring in the right team and establish an excellent business structure. You can also thrive faster when you avoid certain common mistakes. Common Mistakes To Avoid In Real Estate Business Many failed real estate businesses started off and went down the mud because they couldn’t avoid certain mistakes. While mistakes can help you understand certain processes, some of them teach you that at a price you cannot afford. Hence, when you want to begin a real estate business in Nigeria, some mistakes you should avoid include: Excessive Borrowing It’s a bad idea to borrow money to start a real estate business in Nigeria. And to make it worse, when you borrow an amount that is difficult to pay up, you will encounter tremendous levels of difficulties paying back your loan. The real estate business thrives on time. The profitability of the business is largely based on your ability to wait for a property you purchased to appreciate. This way, you sell it at a price higher than your purchase price and either keep or use the profits to get more properties. Borrowing a lot of money to gain many properties will only force you to sell quickly since you would need to pay back your loan. Instead of borrowing, start with acquiring one or two properties with your capital and watch them appreciate. Poor Business Plan The real estate business in Nigeria is very profitable, but if you don’t have a bulletproof business plan, you might not share in its profits. Many people who desire to enter a real estate business move in to disrupt the market and make large profits, but this is a gradual process. A solid real estate business plan must show the emerging markets and the possibilities within. And of course, data must back this research. Further Reading: How To Choose The Right Social Media Platform For Your Business Lack of Teamwork You can start a real estate business alone, but you cannot scale it without a dedicated and committed team. At certain levels of your real estate business, you must introduce other professionals to help you do the work. This way, you can focus on other aspects of the business. Vince Lombardi commented, “Individual commitment to a group effort—that makes a teamwork, a company work, a society work, a civilization work.” How To Begin A Real Estate Business in Nigeria | 6 Crucial Steps 1. Create A Solid Business Plan Without a business plan, your business cannot scale. A business plan is your representation of your desire to scale or increase your offerings in your industry. Many business owners start a business without a plan, and therefore they struggle in certain situations. In creating a solid business plan, you need to integrate entry points, investment opportunities, market penetration techniques, and a lot more. Introducing a business development coach to help you create a great business plan is a significant move to make. 2. Gain Your License If you want to enter the real estate business, you must get the right and complete licensing from the respective bodies. In Nigeria, your license has to come from the Lagos State Real Estate Licensing Body if you operate in Lagos state, while other states require you to present your minimum educational qualification, CAC registration, and means of identification. After you have submitted these documents, the licensing body will review all of them and grant you your license after a few days. With your license, you will avoid any form of harassment from local dwellers whenever you want to enter a transaction with them. 3. Register Your Business Registering your business is a necessity. Without proper registration, you won’t even get a license to practice or begin your real estate business in Nigeria. The body responsible for registering businesses in Nigeria is the Corporate Affairs Commission (CAC). Registering your real estate business in Nigeria is now easier on this platform. Instead of constantly oscillating between your office and the registration body with piles of paperwork, you can simply upload them to their website. If your documentation is complete and your chosen business name is available, your registration will be complete as you will get a