The real estate business in Nigeria is one of the country’s oldest. Over time, the sector has turned into a gold mine, and many astute entrepreneurs have profited handsomely from the industry.
People have always been in need of residential apartments, office buildings, and commercial outlets.
They want to buy or rent buildings and structures of their choosing, and they may need to consult a real estate agent or specialist before making their decisions.
This explains why the real estate market is brimming with business prospects and Africa’s largest economy’s fifth-greatest contribution to GDP.
Starting a real estate business is a rewarding career path fraught with problems and hurdles.
The market is well-established, with various new and old competitors vying for market share. However, instead of being scared by the competition, concentrate on creating a distinct brand that sticks out.
Here’s how to start a real estate business with zero money.
1. Zero down to a niche
In Nigeria, the real estate market is a significant and thriving industry. The first and most obvious step is determining the real estate niche you want to pursue.
This indicates that you have decided on your area of speciality. Whether it’s to supply land or develop the landed spaces and properties available, or you’re coming in as a developer or from a financial perspective, which means having investors you can connect with for a project.
2. Do your research
You’ll need to search for all the details that will make it work once you’ve established the niche and the problem you want to tackle. This includes the people you’ll need to turn your specialisation into a viable business.
A real estate expert, David Johnson, shared how he helps people buy land at the lowest price and for nearly nothing. He indicated that he required a lawyer, a competent surveyor, and investors to make his venture a success.
Johnson’s speciality is resolving land issues; he discovered that people in Nigeria and Africa had houses that weren’t properly documented.
If those with undocumented properties do not complete their due diligence, they risk losing their land to the authorities.
Johnson helps you get the essentials by putting in a legal team to help with documentation.
After the work is done, payment proceeds, “we don’t want cash, we want to land. The investors also want land, that is why they are putting their money in my hands,” he said.
This means that if he completes 100 acres for a client, the client might offer him 1 acre as payment without him having to spend a penny.
The investor has contributed finances to see the project through to completion and pay the surveyor and legal representative.
While serving as a connector, Johnson returns to his drawing board to determine what percentage of the land will be his after paying for the services of the included parties and giving the investors their share.
With all this in play, Johnson has a profit of land as payment and with no money invested but just his idea.
3. Form a public-private partnership with the government
Most people who purchase land properties do so to do something with it, which is still related to real estate.
You can start a joint venture and bring in a public-private partnership (PPP) with the government when they want to come in.
This means “if I have two plots in a very viable environment and they need it to do business, they can come and do their business on it, and I will do equity with them.”
They will be the ones to invest their money and bring the expertise needed for the job under this arrangement, which excludes Johnson in any way.
His only worry will be the land, which is in relation to the people with whom he is in a joint venture. He is profiting from the building due to this.
Referrals are another method to earn money. After a job well done. His partners can refer him to others.