2021 Guide On Real Estate Investment (For Novice)

2021 Guide On Real Estate Investment (For Novice)

We bring back you a fast guide the kinds of land investment options you’ll consider.

Are you getting to start a replacement career or a side hustle to earn extra money? you would possibly be brooding about land .

The real estate business is booming and if you’re smart, this is often the simplest time to start out the business, particularly because the expansion of the industry isn’t looking to hamper anytime soon.

Running a true estate business is one among the recent business ideas in Nigeria that a lot of aren’t really looking into.

In this article, we’ll bring sorts of land options in Nigeria which will assist you kick starter your career.

Stay with us as we explore together.

1. land Investment Trusts (REITs)

This is one among the only methods of securing land assets without actually acquiring a property .

Real Estate investment trusts are companies that make platforms where people invest with them.

These companies are regulated by the Securities and exchange commission (SEC). REITS, may be a unique sort of company that permits investors to pool their money to take a position in land assets.

Some REITs simply buy properties and rent them to tenants, others develop properties from the bottom up, and a few don’t even own properties in the least , choosing to specialise in the mortgage and financial side of land .

The portfolio of underlying assets is placed under professional management to maximise returns to the investors, who are ready to hold an indirect interest in land on a flow-through basis, placing them during a position as if the property were held as an immediate investment.

REITs are bought and sold on the main exchanges, a bit like the other stock.

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Advantages of REITs

  • This kind of land investment provides a chance for investors to have big projects without necessarily owing the particular entry capital for such projects.
  • Needs no minimum investment.
  • Features tax advantages.
    This strategy may be a super liquid thanks to invest in land . You won’t need a realtor to live your investment.
  • REITs pay high yields within the sort of dividends.
  • Provides you the chance to share in non-residential properties like malls, industries, and hotels.

If you would like to take a position in land , REITs are often a really easy thanks to start .

There’s excellent return potential in owning investment properties outright, but there’s tons of labor involved direct land investments, albeit you hire a property manager to oversee their day-to-day operations.

2. Land Flipping

Land flipping is that the ideal land investment for people that have low start-up capital and still want to reap huge profits within a brief period of your time .

It involves buying lands at a coffee price and selling at higher prices to form huge profits. this sort of investment is profitable when land buyers buy land in a neighborhood that’s rapidly growing.

You can structure to 200% on your investment during a few months or in some cases a couple of years.

Advantages of Land Flipping

Land unlike other sorts of land investments require minimal maintenance.

You need to renovate buildings frequently to take care of the integrity of the property but, you’ll let the land sit fallow for years, without spending much in maintenance and it’ll still appreciate in value.

One of the downsides of other sorts of land investment like rental properties is handling tenants, tax issues and other issues related to maintaining buildings. Flipping lands stop of these contingencies.

Raw land is simpler to take care of , albeit you’ve got to carry onto your investment for an extended period of your time .

Lands are generally cheaper than developed properties, which suggests ready to “> you’ll start small and grow your portfolio large enough to eventually be able to secure financing for future investments.

To make huge profits in flipping lands, follow these tips:

In this sort of land investment, you would like to research thoroughly, detect areas that are rapidly developing, have the potential for developing in future or already developed areas.

Depending on the situation and economic viability, certain areas mature faster than others. If you’re ready to acquire land during a more developed area at a good price, go for it.

More developed areas are the simplest to flip during a few months and earn profits compared to developing areas. Developing areas may require a few of years to completely appreciate.

Ensure that the vendor is that the rightful owner of the land and has complete land documents including a Certificate of Occupancy or a Governor’s Consent.

Avoid lands with inconclusive land titles like Excision in Process or Gazettes. Since you’re reselling, you want to avoid getting trapped in land title issues. choose clear, genuine lands with the acceptable land titles.

If you’ve secured the right land at a perfect location, do some work on the land.

Clear the land, create a path or road to the land. Get a surveyor to urge the world marked and craft an excellent description of the world .

Advertise the land by utilizing the various social media sites and other sorts of advertisement.

3. Open Space Leasing

In this case, you own a land during a good location. While you await the property value to extend , you lease the land to people for temporary use for a monthly feed.

For example, you’ll lease it to a car wash, mechanic shop, church, or other businesses which will build a makeshift structure which will be easily dismantled once you are able to sell.

Advantages

  • Extra monthly profits before actual land sale

4. Become a true realtor

There are several steps that each individual must fancy become a true realtor .

  • Train Yourself

Self-development is that the key to success in every industry.

Your communication, networking sales, and negotiation skills got to be top-notch to succeed as a realtor no matter whatever qualification or degree you’ve got or don’t.

To begin your journey as a true realtor in Nigeria, choose intern at any top land organisation for 3-6 months. this provides you more experience about the industry and helps you to create key industry relationships.

Endeavor to also extend your training to social media for land marketing and make a technique suitable for you to implement.

  • Brand Yourself

After you train and learn all about your practice and technology, brand yourself both for online and offline purposes.

Focus on your name, and check out to face content to make a topic for your personal branding everywhere.

5. Property development

Property development, also called land development, is that the process of developing buildings or land into a better use-value. It’s a multi-faceted business which will encompass any of the following:

Buying land and building property thereon
Renovating, extending, or improving property
Converting property from one use type to a different .

6. Franchising

Franchising is a superb means of acquiring and holding land in various growing locations.

The only con is that it needs a considerate amount of capital. It’s as easy as once you acquire a land and use it to determine a business, like a fast-food restaurant.

You then purchase land in several other locations, build your structures and locate franchises which will manage the restaurants on your behalf.

We have many brands, like Shoprite, Sweet Sensation, Chicken Republic, Mr. Biggs, McDonald’s, and a number of other others that exist today.

Advantages

  1. These lands quickly appreciate in value over short period of your time .
  2. Run a sustainable business while acquiring high value land .
  3. Own land in multiple major locations across the country.

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7. Build or purchase rental properties

This type of land investment is that the commonest form. The “buy and hold strategy” involves purchasing a property and renting it out for an extended period of your time .

Essentially, a “buy and hold investor” seeks to make wealth by renting the property out and either collecting monthly income or just holding the property, until it are often sold for profit within the future.

99loads Guide on Real Estate investment

99loads Guide on Real Estate investment

Among the benefits of this strategy is that in the time that you simply hold the property and rent it out, the mortgage is paid down monthly , decreasing your principal balance and increasing your equity within the rental property.

Investing in rental properties can generate passive income, significant tax benefits (being an income property), and build equity from price appreciation over the years.

Types of land Investment (Summary)

That’s all on types land investments. Mistakes are often made in land business as in anywhere else which is why one must practice patience and check out to be wise.

We hope you’ve found this text to be helpful. Do like, share, and drop your comments.

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