How To Invest In Real Estate

Business Finances Uncategorized  How To Invest In Real Estate

What Is Real Estate?


Real estate is the property, land, buildings, air rights above the land and underground rights below the land. The term real estate means real, or physical, property. 




Types Of Real Estate

There are four types of real estate:
  1. 1. Residential real estate includes both new construction and resale homes. The most common category is family homes. There are also co-ops, townhouses, duplexes, triple-deckers, quadplexes, high-value homes and vacation homes.
  2. 2. Commercial real estate includes shopping centers and strip malls, medical and educational buildings, hotels and offices. Apartment buildings are often considered commercial, even though they are used for residences. That’s because they are owned to produce income.
  3. 3. Industrial real estate includes manufacturing buildings and property, as well as warehouses.  Some buildings that distribute goods are considered commercial real estate. The classification is important because the zoning, construction and sales are handled differently.
  1. 4 .  Land includes vacant land, working farms and ranches. The subcategories within vacant land include undeveloped, early development or reuse, subdivision and site assembly. 

Investment Opportunities in Real Estate

Investment opportunities abounds in real estate. Start with what you have. As you grow in the business, you can expand your portfolio. Or you can start big straight away if you have access to capital. In this article, I will only deal with real estate categories that are peculiar to Nigeria. Suffice to say this article is made specially for beginner real estate entrepreneurs. Here are some of the areas you can invest and make your own money without tears.


1. Land Flipping

This means buying of land and quickly reselling it for profit. This is one of the smartest investment in the industry and requires no effort whatsoever. Just your money and knowledge and you are good to go. You will need substantial amount if you want to make hundreds of millions but you can start small by buying just one plot and grow to buying tens of plots and acres of lands and keep selling all year round.


2. Open Space Leasing

This works in a simple and unique way. Buy a property in a good location and lease it out for makeshift use. You can lease it to churches or business that wants to develop a makeshift outlet such as car wash and mechanics. They will be paying you monthly rantage while the property still appreciates for future sell. It is like borrowing money for someone and get paid double interest and still get your money back.


3. Real Estate Agency

This one is the simplest and easiest of them all. It is not investment per say but service rendering. How it works? Go round and look for properties to let and for sale, advertise your service and help secure clients for the property owners, you will be paid percentage as commission base on the amount the property is sold or rented. You can start with little or no money and if you are smart enough, you will grow to become a giant realtor.


4. Property Development

This is where the big guys in the industry are doing their stuffs. They acquire properties in nice locations, develop it into luxury apartments, commercial structures, etc and sell at a very high profit margin. If you spend N200 million to develop a property, be sure you are going to sell for N400million.


5. House/Office Rent

Build a house and put it up for rent, get paid all year for a life time. That is exactly how this work but there is much more to that than I just stated, watch out for detailed articles on this soon.
In the coming weeks, I will be publishing articles from our ongoing researches and advice from professional real estate investors and experts in the industry on various aspect of investments. Keep visiting regularly, you never can tell when any of those incisive juicy articles will be published.






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