If you’re thinking of getting into real estate investment, there are things you should consider before moving forward with any deals. Please ensure to review the following list of items and internalize them before taking those all-important next steps in the industry.
1. Do Your Research:
If you are interested in the real estate market, there are several platforms where you can obtain the information you want. These include mass media, both online and offline, as well as communicating with locals. You may set up Google alerts for certain search phrases on Google and other Nigerian property websites.
2. Decide on your time investment:
Making money in real estate can be accomplished using any method, but you must first decide the amount of time you’re willing to devote to it. For instance, if you’re seeking a passive/supplemental source of income, it’s better to stack up rental properties.
3. Decide Where and How You Will Raise Funds:
Depending on where you are in life, the source of financing may vary. It could be from friends, family, or financial institutions. Alternatively, you could have the money yourself. When you approach the bank or institution, make sure you know what you’re doing. Bank loans are great but be sure to consider the interest rates.
4. Build a team of skilled professionals:
Whatever form of real estate investment you decide on, you will need professional help to pull it all together. For example, if you want to flip houses, you’ll probably require the help of an estate surveyor/realtor. You’ll need an experienced builder if you’re planning to be a developer.
5. Pay attention to hidden details:
Be careful not to enter into business deals with people you can not trust. Consult an expert, or a lawyer, and make sure everything is sorted out correctly, including the tiniest details in every contract.
6. Location of the property:
The property location is the most crucial factor for success in real estate investing. It determines how profitable the investment will be. For example, developing a rental property in Ikorodu will be less profitable than doing the same in highbrow areas in Lagos like Ikeja.
7. Start small:
If you’ve never done a real estate investment deal before, start small. If you’re new to the real estate market, buying too many houses at once and renting them out to sell later might be unpleasant. It could be a good idea to start with one property and get your feet wet before establishing confidence based on professional knowledge and skills gathered.
8. Diversify your portfolio:
When investing in real estate, it is never a smart idea to put all of your money into one property, therefore you should always be prepared to diversify.
After you’ve gained some experience and achieved the required proficiency in whichever type of real estate investment you choose, consider diversifying your portfolio a little.
CONCLUSION;
There is a simple way to enter the world of real estate investment without taking on all the responsibilities and obligations listed above. Hire a real estate investment firm to handle these processes for you, enabling you to sit back and watch your money grow.
