Real estate investments in Nigeria are ideal for short term and long term plans. But the umbrella of the Nigerian real estate investments contains different ways to make money. These are the strategies that this article is aimed at throwing light on.
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.