10 ways Real Estate can help make money
The real estate deals in property acquisition, property renting, property sales and other related services associated with the property business. The business is quite versatile and the options available for entrepreneurs to maximize profit from the real estate sector are getting broader with each passing day. There are numerous real estate firms springing up all over the country and they also offer channels of opportunities for small scale businesses to boom. Their aim is essentially to help clients manage their properties effectively in areas of property transfer, debt recovery, budget management and property management. Today, I will be highlighting ten genuine areas where real estate business can profit any individual who is planning to go into the business.
Buying/investing in shares of property companies
You can make a lot of money by buying or investing in the shares of real estate companies quoted in the Nigeria Stock exchange. Due to the boom in the industry, there have been a steady rise in some of their shares over the years and investors in these companies are reaping huge benefits yearly. Ensure you buy enough shares in whatever Real estate company you are investing in and be guided by a financial consultant before making such investment decisions to avoid making errors.
This is another key area of the real estate business. It is called land flipping, and it is hot business. I bought a land more than a year ago in a very good location for N2.1 Million Naira and just recently, I wanted to sell the same land for N3.5 Million Naira. Some buyers are already bargaining to buy the land for N3.3 Million. The potential in flipping of land is high. One can have more than 80% profit on your investment within the space of one year, as long as you buy the land in a good location.
A pastor friend of mine, who is into the real estate business, recently acquired a storey building for N6.5 Million and sold same property within two months for N8 Million Naira. A tidy profit of N1.5 Million Naira. Not a bad investment option I must confess. If he had waited a little while before selling the property, he would have made an even higher profit on a property that he didn’t spend a dime to repair before selling. That is a huge market potential in the real estate business.
Are you a professional land surveyor? You stand a great chance to make money from the real estate business. All you simply need to do is getting connected to real estate firms and Estate Agents, so that they can connect you whenever they have lands to be acquired. Their fees are usually between N12, 000 to N25, 000 depending on the dimension of the land and the topography of the land. A swampy land will cost you more to survey than a dry land.
One can earn a steady income from helping people to acquire land or sell their already acquired lands or properties. They usually collect a commission of 10% from each sale or purchase of land or properties acquired. They usually network with each other to get properties for their clients. What they usually do is to visit some community having good prospect and virgin land and enter into agreement with the Chairman or youth leader of such community. They then advertise these lands to potential clients who in turn buy at a rate agreed by the community. The agent get paid his commission and the process continues.
Architects draw up building plans of all houses. For real estate companies to develop acquired landed properties, the services of a professional architect are required. No building gets approved in Nigeria without a building plan, which is a structural plan of how the building will look like. Dimensions of all the interiors are usually highlighted in the building plans. Their fees are based on the type of property to be built and the area where the property is located.
These companies make money off the real estate sector, especially when a vast area of land is to be cleared for erecting international market, estate or companies. These construction firms usually deploy tractors, bulldozers and swamp buggy to site for clearing trees, leveling the ground and preparing the location for civil work to be carried out. They earn as much as N20 Million Naira to as much as N60Million Naira depending on the scope of work to be done. They usually employ the services of drivers, draughtsman, laborers and civil engineers on their site.
Welding and fabrication
Welding and fabrication technicians make huge profit during building erection as they are responsible for making window protectors, scaffold for overhead tank, gates and door protectors. I spent more than N400, 000 in putting together these items while building my house and the cost is always on the increase.
Carpenters are a vital component of the building process. They are involved when doing the roofing, when doing kitchen cabinet, constructing doors and room cabinets. Carpenters are vital in ensuring your house gets that beautiful look it deserves. Their charges are based on the scope of work and the relationship established over time. Ensure you use experienced carpenters, as any poor job done could create problems in the future. Some bad carpenters can even use poor quality woods when you have paid them for good quality woods.
Even land or property to be acquired must have a “deed of conveyance” which is a document conveying ownership of a land or property from the seller to the buyer. A legal practitioner usually endorses such document to make it a legal tender. I paid my lawyer N25, 000 when I bought my land in 2014 and the amount would have been higher if we weren’t friends.That isn’t the only job the Lawyer does for you; they also include searches, perfecting a mortgage etc In the event of litigation or disputes, the lawyer who signed the deed of conveyance will usually help to resolve such issue before they degenerate into a larger scale.