How to Start a Mini Real Estate Business in Nigeria with License | Latest Updates.
Mini Real Estate Business in Nigeria: The cost of properties in Nigeria keeps increasing with each passing day and as the urbanization drives and projects continue to expand in Nigeria, the cost of properties will continue to increase and even skyrocket in some urban areas. This article provides a comprehensive guide to starting a Real Estate Business in Nigeria.
While the expected profit to be made from real estate business is high, the risks involved scare many people and a mistake when projecting could make you lose money invested into a property. The risks involved real estate business vary from purchasing houses located in poorly planned areas, to areas prone to flood or pockets of violence, to government policies which could lead to buildings being demolished to make way for new projects or because of poor planning.
These risks aside, if proper planning is done and the procedures are followed, starting a real estate business in Nigeria could be really rewarding. Many people assume you need millions of a naira to start a real estate business of any kind in Nigeria which is licensed. You probably have thought same too but that is about to change by the time you are done with reading this article.
There are many ways on how to start mini real estate business in Nigeria with license
1. Study the Licensed Mini Real Estate Business in Nigeria.
Every business is different and even if you have operated a business before or still operating a business in Nigeria, you have to study the mini real estate business in Nigeria to learn how the industry works. Questions like you value properties, the cost range for properties and types of properties and how you go about acquiring properties in Nigeria are questions which need to be answered.
There are so many ways of learning about this, even online. There are countless articles and books you can download and read to learn more about it. The books can also be bought too. You can also reach out to seasoned and established mini real estate agents to learn the ropes of how the business works.
2. A Mini Real Estate Business Plan Should be Made.
A business plan which is tailored for you business the blueprint your business would be based on. It helps you put the goals, aims, objectives and structure of your business in perspective.
It is a guide for your business and ensures you and those you eventually partner or work with stay focused to achieve the set goals. You can either draw up a business plan yourself or outsource it to an expect business planner to help you do so at a cost.
3. Get License for Your Mini Real Estate
To be able to operate fully and without any legal restrictions, make sure you get a license for your mini real estate business. Apart from getting legal cover which the license offers you, it would also give you credibility with clients and partners.
With a license, it is easier to get funding from the sources of your choice. When registering, your first port of call must be the Corporate Affairs Commission of Nigeria. You can go to the local office near you or start your registration process online on the official CAC website then continue it at the office.
When you are done registering with CAC and have gotten a registration number, the next step is register with real estate associations and agencies in Nigeria. There are many of such agencies but most persons register with REDAN which means “Real Estate Developers Association of Nigeria.”
4. Get an Office Space
Your office has to be located in a particular place than can be accessed by clients or those who want to do business with you. In fact when registering with the CAC this is one of the details asked.
Since you are starting a mini real estate business, it is very likely that you would have to rent an office space. You also have to furnish it with furnitures, lightening and other such office accessories. You would also have to buy are few necessary tools and equipments needed in the real estate business. A gazette would be needed too.
5. Employ Qualified Personnel
You would have to employ qualified personnel to assist in making the real estate business run smoothly. Persons needed would be those with experience in real estate, quantity surveying, estate management and architecture.
You might need a secretary who has accounting and analytical skills. You business is small so you can start even with 2 or 3 personnel. Remember, you would have to pay them salaries and it has to be within your budget as outlined in the business plan you have drawn up for the business.
6. Get Capital from Diverse Sources
Next thing, surely, would be how to get funds to get your business running especially if you don’t have capital of your own. You could get funds from banks, organizations and even private or individual investors.
This is another place where having a license and a well-structured business plan give you an advantage as no investors would want to fund your business with no concrete plans of making profit from their money or even get their money’s worth back. Friends, family and acquaintances are other sources of funds for your mini real estate business in Nigeria.
7. Have a Visible Online Presence
All businesses which are really serious about people getting to know about their business take it on. Take advantage of the internet to reach out to people and get publicity for your mini real estate business in Nigeria.
You create or get a website with your business name, create and use social media accounts like Facebook, Twitter and Instagram to promote your real estate business. In Nigeria, you could advertise your business on online market places like OLX , JIJI and VCONNECT.
8. Brand Your Mini Real Estate Business
Make sure your mini real estate business is branded. People identify more with brands. Have slogans, print banners and flyers. Just about anything to brand your business.
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