Real Estate Business in Nigeria – How To Start & Plan From Scratch

How to start a real estate business in nigeria
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Consumers have changed the real estate industry. Specifically, it’s hard to grow any real estate business in Nigeria from scratch.

Tell me, how would you scale up when consumers are the main reasons behind these changes?

Or how would you compete with the hottest real estate brand like eystone right away?

Yes. You can brainstorm using traditional marketing like TV ads, billboards, and grant interviews.

But the question is:

Does it scale-out at all?

Well.

Just consider these numbers:

Considering the fact that traditional marketing still plays a huge role in brand outreach.

  • Yet, about 90% of real estate business that uses traditional marketing doesn’t see their desired results.

how to start a real estate business

In fact.

…Using traditional marketing doesn’t mean you’re successful as a brand. It means you spend more money within your budget.

And that if you are ready to spend that much for marketing outreach.

Now, if you probably wondering going for traditional outreach to grow your real estate business in Nigeria is too expensive.

Unlike traditional advertising, the cost is relatively high.

You can still push it to the wayside by cheap online advertising channels like online webinars, paid ads, SEO, SMM, e.t.c

Mastering such cheap channels. Even the smallest real estate business can compete on the same stage as a multinational if they have a uniquely creative and powerful message.

If you want to grow your real estate business from scratch, internet marketing should be the first place you start.

That said.

In this epic guide, I’ll show you how you can start your real estate business in Nigeria from scratch and turn it into a global brand overnight.

Even though is not easy to screw up.

But, you’ll learn why having a real estate business plan is so beneficial and the best way to invest in real estate with zero risk.

Keep in mind.

real estate company statistics

  • About 55% of real estate buyers don’t trust buying property from a real estate company.

And:

  • About 76% of real estate buyers state that they are happy with the return on investment and customer experience that they get from buying directly from a real estate company.

…What about?

  • 90% of real estate buyers report that real estate company has helped them know the right market to invest in.

That’s why it’s important that you come up with a smart decision that’ll help you stand out.

If so, let’s dive in.

So,

Here are how to start a real estate business in Nigeria from scratch – 5 key steps

  • Create a real estate business plan that sells
  • Build a great portfolio
  • Use SEO to grow your real estate visibility
  • Make use of crowdfunding
  • Know your market
  • Study your audience

What exactly is the real estate business in Nigeria?

You can say,

The real estate business in Nigeria is an act of using properties such as land or house to solve the basic needs of the consumers and the end product of it is that you’ll generate great returns.

That said.

But,

I bet you didn’t remember a story that has been told for years in Nigeria, one of the few countries in Africa where land remains in common ownership.

Today, about one-third of all the land in Nigeria is owned by one family.

Guess what.

This has opened up for investors to start the development of their land.

And statistics don’t lie.

It’s no exaggeration.

It is estimated that the total value of the real estate sector is about $7.3 billion.

You may also ask, how about the growth?

Well.

As it is, the growth in the real estate sector was a major contributor to Nigeria’s economic growth, with the real estate industry becoming a major driver of economic growth.

Guess what.

The property market has been skewed by the huge increase in real estate prices, which have driven up the price of land.

But, something else kicked in.

And that is.

The real estate business in Nigeria becomes a very important sector for the development of the state.

In fact.

In the past, the real estate business was mainly concentrated in two areas:

Which are likely going to be, the big cities of Lagos and Abuja.

Today, we have a lot of real estate businesses spreading their wings across every part of the country.

This trend is the reason that the real estate industry in Nigeria has become an important sector of the economy.

However, if you are to start your real estate business from scratch, I guess it’s not going to be an easy ride.

And why?

…It is always bumpy with pitfalls and possible fails.

The fact is.

There is always a way to start from zero to hero and not hurt yourself in the process.

How did I know?

See this data.

…As you can see in the infographic below:

There have been sharp falls for real estate startups with no fundamentals.

In fact.

how to start a real estate business from scratch

  • About 99% of real estate startups fail because they don’t know what to do in the sector.

real estate business in nigeria - how to start

  • While the smart startups with basic fundamentals dramatically see an increase in brand growth, roughly 10% percent per year.

That’s why it’s so important that you learn the basic fundamentals involved in the real estate business.

And how you can navigate the ride seamlessly while running at minimal risk.

The truth about the real estate sector

Remember, how you think big of your business, the truth is, understanding the fundamentals is one of the best ways to build a brand.

  • Do something extraordinary unique
  • Grow your customer retention
  • Improve your customer satisfaction
  • Win prospects
  • Build a formidable marketing outreach
  • Leverage SEO(search engine optimization) to generate qualified leads
  • Grow your sales funnel and customer base.
  • Know your customer’s lifetime value.

When you do this, the speed at which you see results doesn’t just help you win direct clients and drive revenue, it also helps you keep them for a lasting relationship.

And that’s the best bet.

Because you get satisfied clients fast, however, you are able to optimize your marketing campaign to maximize return on investment much faster.

This is vital because the real estate business in Nigeria is quite a favorable one, where the market is not volatile.

As a result, you don’t have to worry about the risk involved in the real estate investment.

Here’s a simple truth.

If you can buy a secured and authentic property in a selling location, you can see returns with ease.

Even if you don’t know the fundamentals of real estate.

The good news is.

If you buy a property in a selling location, you can maximize your profit much faster.

No other real estate strategy(like a selling location) lets your average business see great returns of this size.

As you know.

Real estate is a very lucrative investment plan if you want to grow your return on investment.

But you can’t achieve this if you don’t know:

  1. What do you want to do?
  2. Why do you want to do it?
  3. How do you want to get it done?

If you can get this right.

…What it simply means is

You won’t be forking over millions of Nairas to reach dead clients that don’t reason what you do.

 

3d illustration of Email notifications. 3d illustration of Email notifications sent in response to specific user action.Business and digital communication concept.3d render. cartoon marketing stock pictures, royalty-free photos & images

 

If you want to invest in real estate for improving your passive income.

The question is, where does your market stand?

Are you starting a real estate business in Nigeria just to see returns on:

  1. Rental property
  2. Buy and hold
  3. Leasing
  4. Commercial property and more

These questions are gold.

First,

It allows you to understand the market and know when to buy, sell and hold.

Just knowing all that is never enough, if you are to generate quick returns.

…You still have to know who you are about targeting(target audience).

This allows you to focus on a small segment of prospects.

For example:

Let’s say, you are about to invest in rental property.

I guess, the first thing to do is that you buy property in locations where there are a lot of tenants than landlords.

Right?

As a result, your market will sell much faster.

If you have a good location for your market, you can target and sell to your prospects with ease.

When you define your audience, segment them based on their interest.

Here’s what you get:

  • Demographics – 25 – 40
  • Interests – real estate investors, real estate developers, property buyers
  • Average salary – 500k – 2 million Naira
  • Location – Lagos and Abuja

You don’t have to worry about how to target them to sell.

First,

You have come up with proper market research, on what type of property fits their needs.

If you can get it right, you will have a selling market.

And that’s so important.

For instance,

In this epic guide, I said something about the real estate business plans and goals, and here’s what I said.

The simple ways to achieve your real estate business plans and goals

In order for a goal to be effective and powerful, it needs to be specific.

  • What kind of clients do I need?
  • How many numbers are we targeting this month?
  • What steps needed to be taken to achieve this?
  • How can we get these potential customers?
  • What offers are we churning out to them?
  • What needs to be accomplished

Thinking through these processes helps you and your team aim at the exact goal without running feathers around.

The goal might be,

Grow the number of leads by optimizing our property listings and creating targeted SEO campaigns.

In other words, it must be measurable too.

Specific is a great start, but you have to make sure they are measurable and make it easier to track progress.

As a result of that, if you fail to set up your real estate business plan from scratch.

The bad news is.

It’s going to be hard to stand out.

Build on your fundamentals to grow your real estate market value

The fact is.

There are two major ways you become an investor in real estate.

It’s either you buy land or you are able to invest in an already developed house.

land investing for investors

Either way, the choice you choose solely depends on what it is you hope to do with your investment.

You can expect to see it grows to about 20% in returns.

Well, it depends.

So that you know starting a real estate business from scratch or zero capital should not deter you from becoming an investor.

Here’s a typical example of how you can start your real estate business with zero risk.

First,

There’s this system of operation that lets you own property over some time.

So, what exactly it is?

Well, it is called the “lease system

Here’s how it works.

Lease system

For this.

The property owner charges higher rental payments to cover both the lease period and the payment for purchasing the land.

These payments can be on a monthly or per annum basis whatever way both parties agree to operate.

Next,

Money lenders

In this case, we talk about the bank.

Specifically, if you want to borrow a loan from a bank.

You may probably have heard about “credit score”

If not, I’ll explain.

What is a credit score?

Is credit score still a good count?

Let me explain.

In this epic guide, real estate for investors – The complete guide, here’s what I said about a credit score.

So, what exactly is a credit score?

A credit score can be defined as a report lenders see as a necessity for financial management or financial risks that serve as a factor to determine eligibility for a service. And the average good credit score report is 752.

Why should you care?

Many real state consultants or lenders see credit score as your greatest financial asset.

Take a look at this:

Here’s an example,

Let’s say we have two homebuyers in Lekki who want to buy a home and they need a 70 million home loan.

Borrower A, with a credit score of 560, qualifies for a rate of around 6%, and the monthly payment will be 1,275 Naira.

And borrower B, with a credit score of 760, qualifies for a rate of around 4%, and the monthly payment will be 745 Naira.

Of course, you can say:

Borrower A and B have a credit score difference of 200 points and this cost Borrower A 530 Nairas more per month in interest fee.

In fact:

After 4 years, borrower A will pay 10x more than borrower B.

This is true.

That’s why if you continue to qualify for conventional or mortgage loans with lower credit scores, you’ll suffer for each loan received every time.

So if you have to look towards appreciation through conventional loans so that you get real estate property finance, you have to check your credit score.

Of course, it’s important.

That’s why it’s important you have a clear understanding of what your credit report is all about.

Because, it’s not only about the insights but you can use it as a powerful weapon in your financial bottom line when it comes to saving money, and getting the best deals and rates on services over time.

And why?

It’s just simple.

As you just saw above, just a 200 points score can mean the difference between thousands or millions of Nairas of time wasted on the higher interest rates and fees.

Offer services to cover property cost

Yes.

This might seem not plausible, but if you have a high and in-demand service to offer.

Then you can trade that up for a property.

It’s important to know that whatever it is, it’s likely between you and the property owner.

Another important piece is that when it comes to the duration of service, it made equivalent to the price of the property.

Make use of crowdfunding

First,

Let’s look into types of crowdfunding.

  • #1- Reward-based
  • #2- Debt-based
  • #3- Equity
  • #4- Donate-based

Step #1 – Reward-based

Here’s how this works.

Reward-based crowdfunding is completely different than for debt-based crowdfunding.

Reason #1 – This works just for a new startup or company.

You can get a helping hand from stand-alone investors, these investors will help raise funds for your startups.

After all, they’ll earn rewards based on the funds raised.

Step #2 – Debt-based

Let me show you how this works:

First, this type of investment has little impact on your cash flow.

Instead, you’re wondering how to pay back.

But, the interesting part is that the loan deal is on a lower interest rate.

So it’s clear that, if you need some funds, you’re not required to pay them back until your start-up investment begins to generate returns.

You can get quick loan benchmarks at a lower interest rate.

This can be super helpful.

Step #3 – Equity crowdfunding

If you are not a stand-alone investor.

I would not recommend this for you especially if you’re not a big player in the game.

But if you are.

And if you want to dig even deeper into real estate investment, you can start with equity crowdfunding.

Here’s how this works:

You can leverage with a company that will provide you(investor) with shares in the company.

And in return, you become a big shareholder of the company.

My advice:

Most times, this only works well for investors with a good credit score.

That’s why I recommend new startups and beginners to fade off in the distance from this kind of investment.

For some reason, it will suck you hard.

Step #4 – Donate-based

This is super helpful if you are on a tiny budget.

Here’s why:

You can find investors who are willing to serve as benchmarks.

The next process is that these investors are ready to raise funds or capital without expecting any returns.

Sweet!

But what you may not know is that you can use crowdfunding sites or platforms to take care of your day-to-day tasks to ensure successful returns.

Like:

…Fundrise

For Nigeria, maybe – Rise vest

Exchange from family or friends

Guess what.

…Who else will trust you enough to give you a large sum of money without collateral if not your family and friends.

Right?

The interesting part is:

These people can turn into to be mini offline crowdfunding for your real estate business, they are ready to support you on your project.

And then if you are trying to start.

First, you have to segment those you are trying to work with.

That way, you’ll be able to come up with a sound decision of who to pick or not that will help you get the job done with ease.

Like:

  • A legal practitioner
  • A surveyor
  • Marketer
  • Office manager
  • A real estate agent
  • A sales rep

These are the essential members you need onboard for your real estate business to be a profitable one.

Use search engine optimization to grow your brand

Chances are that you have heard about SEO.

If not, I’ll show you how to use SEO to grow your real estate business in Nigeria.

This is the exact strategy that I use to generate tons of qualified leads.

Like this one below.

And I’m going to show you how you can leverage SEO to improve your real estate business visibility and reputation online.

Here’s how it works.

When you type a keyword, chances are that Google shows you relevant result lists.

Right?

These pages are optimized to rank for that exact keyword.

This way, when end-users search for that term, and if your content is well-optimized chances are it’s going to show up to these end-users.

The results?

It means more leads and more sales.

But, how would you know the basic SEO to do for your real estate website?

First,

  • You need to create a website platform(preferably a WordPress site)
  • Target your site for a keyword you want to rank on Google
  • Install Yoast-SEO plugins to improve your site’s overall SEO
  • Write content that is unique and better than the ones out there
  • Use topic cluster
  • Build on silo page
  • Use schema for your real estate site. Here’s an example

how to do seo for your real estate business

For the screenshot above, the schema used is called FAQ schema.

…Other ones you can implement are:

  • Product schema
  • Q&A schema
  • Logo schema
  • Review schema
  • Local business schema
  • Article schema
  • Organization schema
  • Individual schema

This means if you are to gain more real estate in the search result lists, you need to start implementing schema structured data.

There are plugins that I recommend you can start with.

After that, you have created your social media platforms and built your website.

The next step is, you have to install a plugin called Yoast SEO.

This plugin will help you with your On-page SEO.

Like:

  1. Target keyword
  2. Internal links
  3. External links
  4. Meta keywords
  5. Keyword density
  6. URL slug
  7. Topical cluster and relevance
  8. Schema
  9. Keyword in introduction

And more.

…If you want to know more about a real estate SEO. This epic guide will help you, I want this article.

Build a formidable branding.

Branding is always the solution.

And you have to also know that branding doesn’t stop by building a logo.

No.

Branding goes beyond that.

In fact.

Branding is everything.

Beginning from how you market your products.

Because that’s how consumers will see your business.

And it begins with:

  • Your marketing message
  • Your slogan
  • Why, how, and what golden circle
  • Your unique selling point
  • Offers

And more.

Final thought

If you have to build a real estate business in Nigeria, you have to create a top-notch business plan and strategy.

As you know.

The real estate industry is getting even more competitive.

And if you are to remain relevant in the game, chances are you have to do what 99% of your competitors are not doing.

To do that.

You have to start leveraging the internet to grow your audience and create a community for your real estate business in Nigeria.

If you don’t know what market your chances stand.

Then, my team can work with you to get it right.

You can simply start a live conversation with us or simply subscribe to our newsletter.

We’ll reply in minutes.

And don’t forget to share this helpful guide.