Many new investors understand the benefits of owning real estate but don’t have millions of naira in the bank to help them get started. 

At Brent Housing we offer numerous opportunities for you to get into real estate investment in Nigeria without breaking the bank. 

Let’s look at some affordable real estate investments so you can get off the sidelines and start investing. 

INVEST IN REAL ESTATE INVESTMENT TRUST (REIT)

Real estate investment trusts are one of the simplest ways to get started in real estate investing. This is because their accessibility, liquidity, passive returns, and low cost of entry. A REIT is a company that pools money from multiple investors to buy or develop a variety of commercial real estate assets. 

A REIT can be private (non-publicly traded) or publicly traded. Publicly traded REITs are the most straightforward real estate investment in Nigeria option. And are as simple as buying shares in the REIT of your choice from a brokerage account. 

MAKE YOUR HOME YOUR FIRST REAL ESTATE INVESTMENT IN NIGERIA 

Some real estate experts classify your home as a liability rather than an asset. After all, if you own a home, you pay for maintenance, taxes, and possibly property insurance or mortgage. Put simply, it takes money to own, but there are ways to offset the liability to possibly become an asset where the property produces income. 

For example, if you have an additional space in your home, a garage apartment, or an in-law suite, you could rent that space out as a short-term rental. The additional income could help offset some of the expenses of homeownership or help pay off any debt at a faster rate. 

If you do not own a home yet, consider buying a duplex or a property that has the potential to rent out an additional unit. It is a big real estate investment in Nigeria.

WHOLESALE AS A REAL ESTATE INVESTMENT IN NIGERIA

Another option to start real estate investment in Nigeria with little upfront capital. Otherwise known as wholesaling. This specific niche of real estate investment in Nigeria allows investors to make money from a real estate transaction without ever having to buy a property themselves. 

When you wholesale a property, you find an off-market seller and get their property under contract to purchase at a set price. Typically this is low value. You then find a third-party buyer who has cash available to purchase the property and assign the contract to them at a higher price. You get paid the difference between the prices. 

Wholesaling is an active real estate investment strategy, meaning you would be doing the work in the field to find, acquire and sell the property. 

While there are expenses that come with any investment, wholesaling is relatively cheap when compared to most forms of real estate investment in Nigeria. 

As you can see, there are several options available if you want to start real estate investment in Nigeria on a budget. 

Brent Housing aims to help you find them and maximize the potential of your real estate investment, with its array of affordable options and opportunities. To get started contact us here. 

As a new investor, these numerous choices can be overwhelming.

These strategies will give you a better idea of how to make money from your real estate investments in Nigeria.

And hopefully, one or more strategies will be a good fit for you. If so, this article can provide the perfect starting point for your own journey of real estate investments in Nigeria.

FIX AND FLIP

The fix and flip strategy is the business of finding properties that need renovations. Then doing the repairs, and reselling them at top price for a profit. 

Here houses are bought for the sole purpose of making repairs and quickly selling it for a profit. House flipping has become popular in the past few years. And to be fair, there’s a ton of money to be made if a flip is done properly and goes according to plan.

SHORT TERM BUY AND HOLD RENTALS

This real estate investment in Nigeria strategy involves buying and holding rental properties for relatively short periods of time. Perhaps for 1 to 5 years. Often the purpose of this strategy is to force property appreciation by remodeling, raising the rent, decreasing expenses, or all of those.

The short-term buy and hold strategy works very well for multi-unit apartment turn-around projects. It also works well for rentals in high priced, appreciating markets that don’t have cash flow as well.

LONG TERM BUY AND HOLD 

This is the strategy of owning real estate with the intention of keeping it for the long haul.  The benefits of this slow and steady (and very successful) strategy include rental income, tax shelter from depreciation expenses, amortization of loans, and price appreciation.

This real estate investments in Nigeria happens to be a very good but not fully maximized strategy.

SYNDICATIONS AND CROWDFUNDING

Crowdfunding is a new strategy when it comes to real estate investments in Nigeria that is fast growing. Syndication is essentially pooling your money with other investors to buy real estate or make loans. It’s a way to invest in any of the other strategies mentioned above without having to put the deals together yourself. You invest your money with syndicators or general partners who find and manage deals for you. 

Typically, these involve one commercial real estate asset and a value-adding modification. This could be as simple as restructuring the property’s debt or as complex as a complete renovation. There’s usually a target end date when the developer plans to sell or refinance the property.

Instead of funding the entire project with their own money and bank financing, the developer raises some of the necessary capital from investors like you in exchange for an equity interest in the project.

Real estate investments in Nigeria are entrepreneurial ventures. Sometimes you have to experiment and try things that don’t work before you find your sweet spot.

Brent Housing strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the Nigerian growth markets. We can help you succeed by minimizing risk and maximizing profitability. 

Reach out to us now by clicking here to get started on your real estate investment in Nigeria journey.