Real estate investing according to Wikipedia involves the purchase, ownership, management, rental and/or sale of real estate for profit. Although this form of investment has been on for a long time in Nigeria, only a few are aware of the investment opportunities apart from earning regular income through rental income.
We have highlighted 5 means of earning revenue from real estate investment
1. Real Estate Investment Trust
This is a form of collective investment scheme regulated by the Securities and Exchange Commission (SEC) and traded in the Nigerian Stock Exchange (NSE) which pools funds from investors and in turn uses them to acquire real estate that are income generating. There are no minimum investments and it is a highly liquid way to invest in real estate. You won’t need a realtor to cash out your investment.
2. Land Flipping
This is another great way to invest where you buy land at a certain price and sell it for a higher price. You can make well over 100% profit from each sale especially when you buy from a rapidly developing area. You can choose to start small by buying a plot of land or buying as much land as you can and keep selling.
3. Becoming A Real Estate Agent
This will appeal more to those who do not have the capital to make an investment. Your work as an agent will involve offering your service to property owners who are looking for buyers. The income here is commission based after the sale of a property.
4. Property Development
This type of real estate investment is usually capital intensive because you will be acquiring properties that are depreciated so you can renovate and sell/rent at a high profit margin. Have in mind that the location of the property is crucial to how much profit can be realised from the sale.
This method of investment involves you acquiring and holding land in different fast growing locations. A business such as a fast-food restaurant can be established on a property. After which you buy land and build a structure in other locations then find a franchisee to manage the restaurants on your behalf. Brands like Mr. Biggs, McDonalds etc are involved in this.
Real Estate Investment is profitable especially when proper and professional consultation is done before venturing into it. If you are considering any of the investment options above, you may want to speak with our in house professionals to receive the right counsel.