The question is: What do you know about real estate?
You may be wondering that is all just about buying and selling property.
You are a bit, right.
…I bet you don’t know that real estate investment is not only about buying and selling property.
There’s still a lot more.
That’s why, in this guide, I’ll show you the basics of real estate and even the advanced method of building a property portfolio better off than the ones out there.
Let’s first go over what real estate is.
That way, we’ll be on the same page before we dive into the fundamentals of real estate…step by step
What is real estate?
Real estate can be defined as the collection of lands(acres and hectares) and the development of building materials.
It can be used for different purposes such as agriculture(farmland), residential, commercial, industrial, and mixed.
Basically, real estate is any form of marketing that involves property and also meet human needs.
This property can be sold either online or offline.
Both kinds are important for a well-rounded real estate strategy.
Why do property listings matter?
Remember property listings? I think I do
As a marketer, my experience from the touch screen of my phone mostly resonates, as:
…Real estate companies, when are we showing up there?
The experience looks different when it comes to rich results and then for better conversion.
Whenever one of those listings popped up in the front of the screen.
…What are they doing differently?
Growing up as a kid, the answer of most real estate agents would, most times, be like, when you invest in real estate, you’re guaranteed great returns.
Sometimes, big estate agents would even start a word-of-mouth marketing war.
Like this one below:
The most interesting one is:
…The online bidding war is making the whole thing get even more interesting.
Which got quite a few smiles.
The question is:
Are investors looking into real estate at all?
Unfortunately or fortunately, most people think real estate is mostly dead.
Especially when your focus is on countries like Nigeria.
In fact, eystone did a fantastic job, stating that:
- Over 55% of real estate buyers don’t trust buying property from a real estate company.
…Just think of it this way:
Zillow generates more revenue than any real estate company because they control more traffic(eyeballs).
That’s why real estate listings matters, it’s where the attention is.
The reason why real estate listings, like this one below, will strive more, is because the future of consumer’s experience is going into easy accessibility and it will actually look like this:
Although offline sales still exist, consumers are still paying attention more online, in the future, as real estate buyers’ purchase changes.
Not even a single real estate buyer will spend their time converting for offline sales.
The reason is that the real estate market is changing in favor of millennials.
Since when these changes occur Millenial’s purchase journey took a new leap further.
Most of them spend their time watching property videos online, searching Google for information, and reading valuable content.
That is more reason that you have to get your property portfolio in front of them.
As technology improves, real estate buyers’ decisions also change.
Real estate types
The 2 major types of real estate are residential and commercial.
Let me pick up the residential property.
The 7 ways to invest in residential real estate:
- Single-family home
- General apartment
- Hotel building
For commercial real estate:
- Multi-family rentals
- Shopping centers or shops
- Restaurant, sports facilities
The history of real estate
Like, way ago, about 80 years ago, to be exact.
Here’s a picture of the first man who played a real-life game of monopoly and won the largest real estate empire in history.
His name: Zeckendorf
Mr. Zeckendorf demonstrates his love of making blockbuster development deals such as site acquisition for the united nations, and virtually wall street to name a few.
His innovation and understanding of complete capital structure enables him to make deals that others could not(e.g hawallon techniques) according to Plaza press.
It sure didn’t take the developer long to realize that great design sells itself.
Like, way longer, real estate has become more institutional.
This guy invented highly creative design, and modern and innovative projects with the power of personality to make it all happen.
While it would have taken us more years for real estate to become an attractive niche to the general public.
And guess what.
It is these visionaries that take our civilization a step or two forward.
Although it was first stated that human culture evolved from nomadic tribes and wandering shepherds.
And Invespodia sums up the history of real estate and homeownership in one super helpful guide.
Here’s what they said;
Our ancestors abandoned the hunter-gatherer lifestyle gradually over the period spanning 30,000 B.C.E and 15,000 B.C.E.
This change was far from global, and hunter-gatherer societies still survive in some areas of the world today.
But it did mark a transition toward an agrarian society—a transition that also heralded the advent of homeownership.
This system of labor-for-protection developed into two separate systems in most countries: taxes and tenancy.
Royal families spread their wealth to friends, signing away titles and deeds to lands that allowed the holders to collect the revenues (rent) produced by the peasants living there according to Investopedia
Intro to real estate
As you know:
There are two major types of real estate:
Residential is a form of real estate that is entirely for living.
If your market is to build a house to live in or for your prospective tenants to live in, then your market actually is a good fit for residential.
The fact is:
Real estate investors have been using residential property to build wealth for decades.
The next time you see estates popping up with offices then the estate experience is enhanced for commercial purposes.
Of course, we can’t forget industrial real estate.
This is one of the biggest and fastest-growing property hubs.
And the industrial property has been around for many years.
What is the difference between a building somewhere on a major street and a building in an estate?
The cost? The living? The environment? The security? The power supply? The pride? The supply?
Just 3 words – “Standard of Living”
Almost all the buildings in an estate are always standard.
Because in an estate, you only find well-rounded people. People that are in cool cash
If you have a house built in a high-standard estate for rent, you are already extremely rich.
Because, in real estate, a high standard of living is probably more valuable than anything else in the industry.
And over 200,000 real estate investors are spending big on this each day.
When it comes to a high standard, here’s what it means:
- A serene environment
- The architectural structure is on point
- Modern materials
- 24 power supply
- Tight security and more
And all these are the pride of a home.
So if you want to build a well-rounded house, there’s land still selling that you can buy cheaply.
Some of them are even affordable so that you become part of the development of the estate.
The fact is.
You already have one solution:
Buying a landed property from eystone would only cost you 2 million above.
And the overall result will be hard to believe. Because it will amaze you
Okay, the next one is a good one.
If you can work this out, you can consider yourself an extremely lucky person.
If you buy land for residential purposes, you can see 40% returns in 6 months.
If you buy land just for 3 million, you can see your investment grow to 4.2 million within 6 months.
Some of our clients used this same exact method to do over 30% of returns within 3 months.
In recent years, real estate investors made a smart move.
Having constructed offices, shopping centers built around residential premises.
This is where most real estate investors sell their services across the location.
To build a commercial property.
- Do your property research – to see whether the location and estate are buzzing for your market.
Or find a location or estate whose audience reflects your company’s target demographic.
The best bet?
Asking questions or active interaction with the real estate developer or real estate company should be able to provide you with the data that helps you select the right fit investment.
If your business sells mostly children’s products, you want to find a location or estate whose average demographic is between the age of (1 to13).
And you are talking about couples(married individuals) with kids.
When you know your market and your audience.
That way, you have easy access to how you can sell to them.
Research analysis shows that:
A key part of operating a business is understanding your industry and the market you are serving.
That means analyzing the competition, the opportunity for growth, and your audience or customer base.
One of the most important first steps to understanding the market is knowing your customers. You could start by organizing your current or potential customers.
Your target market segments — into different groups based on things they have in common.
The characteristics could be based on demographics, such as age or marital status, or behavior, such as whether they prefer to shop online or in stores.
Doing this can help you better understand your customers, an important part of growing your business
Identifying and narrowing in on your target market segments can help you create and launch effective promotions, which could increase your sales according to practicalbusinessskills
Industrial property is such a giant hub, that it will likely never go away.
It’s easy to say the industry where the most money is burned each day.
Fool.com did a fantastic job in this super guide, they said something about how industrial real estate isn’t done growing yet.
And here’s why industrial REITs will lead the way this year.
Here’s what they said more.
Industrial real estate is having a moment.
The industry has experienced impressive growth over the past decade, with industrial real estate investment trusts (REITs) as tracked by the National Association of Real Estate Investment Trusts (Nareit) providing an average return of more than 20%.
At year-end, there were 467 million square feet under construction. This is among the highest level of active development for the sector historically, but it’s nowhere near enough to meet today’s demand. Retailers leased the biggest share of industrial space in 2020, but logistics and warehouse operators led the way in 2021. It’s projected that third-party logistics, which are companies that provide distribution, storage, transport, and fulfillment services to other companies, will make up 35% of all industrial leases in 2022 according to fool.com
Here are some quick facts about industrial property:
- Average Nigerian investors still spend 800 million on industrial property
- Only 10% of investors have a will power to carry out industrial projects (it’s highly expensive)
- Roughly 30% of all industrial project-related are seeing a good return on investment.
But, there’s one problem.
Sometimes, there’s always a diminished supply and steady demand.
The good news is:
Rent rates are on the high side.
About 8% rental increased each year while other markets experience more huge spikes.
Now that you know everything about real estate, its history, types, and how to invest.
It’s so important you execute a better strategy that gets you moving fast.
And my team is ready to help you out.
All you need to do is to start a live conversation with us and subscribe to our newsletter.
We’ll reply in minutes.
And don’t forget to share this super helpful guide.