One of the problems facing mankind is housing. Population of mankind is increasing daily, so also is the need for housing. And whenever there is a problem or need, opportunities are created for those who can solve the problem or meet the need.
There is ample opportunity for those who wish to make fortunes in real estate.
In this article, we shall be discussing seven ways you can make fortunes in real estate.
1. Finder business
A finder is any person who brings two parties together in respect of certain transaction and in return for an amount of money, usually called commission.
A finder is more or less a middleman.
Practically speaking, what distinguishes a finder from real estate agent is that a finder is representing both parties in a property transaction; while a real estate agent is more or less a person who acts on behalf of property owner, also called the principal.
Finder business is one business that can make you a millionaire overnight. The beauty of this business is that you start it with little or no capital. No overhead expenses initially.
The way to go about this business is to first approach property owners who have land or houses to sell. Strike a deal with them; offer to help them find buyers in return for an agreed fee (commission).
You can find property owners in your neighbourhood, or in newspaper adverts, real estate advert publications, building sites, and real estate developers.
Next, you go and find buyers. To find buyers, you can follow this procedure:
a. You can start by word-of-mouth marketing. You start telling people about certain properties that are for sale and how you can link them to the vendor.
b. Make signboards and place them at strategic locations. The signboards need not have stands and so, you don’t have to dig the ground to stick it on the ground. You only place them in any place people can see. Include your phone number to enable people prospective clients contact.
c. When money starts coming, you can also advertise on a large scale like printing of flyers, posters, and advertising in a local and national publication.
d. You can also set up your blog where you upload the listings you obtained from vendors.
NOTE: Setting up a blog is not a difficult task, but you have to learn it. Presently, I am running Blog Design Training programme where I teach people how to design blog. On completion of the training, you will design your blog by yourself.
If you cannot come for the training, you can order my eBook, How to Design Your Own Blog and Monetize it in Less Than 60 minutes. The eBook contains detailed step-by step instructions that will help you design and set up your blog in less than 60 minutes.
I can also assist you in designing your blog and post your adverts or listings on it. Of course, it is for a fee, but it won’t cost you an arm.
For details, you can contact me:
Behing Unity Guest House,
Off Mpape Market,
Mpape, FCT-Abuja.
Phone: 07061016859
Email: sunnyadaji@hotmail.com
In running your finder business, remember to protect yourself against cheats. You should consider having a written agreement or memorandum of understanding with the vendors you are helping to sell their properties. Unless you do this, you may never be able to collect your commission after a property has been sold.
2. Real Estate Agency
A real estate agent is any person who acts on behalf of property owners (principal) in return for an amount called commission.
A real estate is similar to a finder, but in the case of real estate agent he is issued power of attorney (a document) which confers power on the agent on behalf of the issuing authority (principal, that is, property owner).
Like finder business, real estate business can be started with little or no capital. However, as you progress, you will need money to advertise, rent an office, etc.
Follow the procedure discussed under finder business above to set up your real estate business.
Note that it is advisable that you register your business name. This would attract patronage and confer some credibility
For details on how you can register your business, read our article, Why You Must Register Your Business Name. The article is on this blog. Browse through this blog, you will find it.
3. Supply of Building materials
Do you know that right now as you are reading this article, there are people making millions supplying such building materials as sand, gravel, stone, and granite?
Supply of these building materials is lucrative in the sense that builders and property developers need them regularly.
A tipper of sand which is 5 tons, cost #14 000 upward. A tipper of granite costs #40 000. A tipper of unwashed gravel costs #22 000.
Now, it is important to note that you can start this business with little or no capital. All you need is print flyer/handbill and business card and distribute them lavishly. Talk to landlords, talk to building contractors, go to building sites, and talk to people about your supply business. You collect money in advance before you supply your customers. Make sure you register your business name.
Note that there are gravel suppliers association that you can join, if you want to do the business. Find out whether there is such association in your locality.
Ensure that you buy your granite, gravel, and sharp sand direct from the quarry.
In addition, if you have the money, you can buy granite in bulk and sell them in smaller quantities. For instance, you can 30 tonnes of granite for #120 000, and divide the granite into six parts, that is, five tonnes apiece. Then, you can sell each part for #40 000. If you sell all the parts, you make #240 000. That is 100% profit!
Note that the prices mentioned here are prices obtainable previously. But whatever happens, you stand to gain either as a supplier or a seller.
4. Supply of Manufactured Building Materials
One of the interesting aspects of this supply business is that it costs you almost nothing to start. You don’t need a warehouse; you don’t need huge capital to buy materials. The capital you need to buy the materials for supply is obtained from you clients seeking your services. You negotiate your charges. You ask for the amount to enable you go for the purchase.
On the other hand, you can demand 75% of your total cost of supply. There are lots of building materials you can supply. They include cement, iron door, glass windows and louvers, timber, cables and electrical appliances, ceiling boards, asbestos ceiling, roofing sheets, plumbing facilities, etc.
You can obtain contract from building contractors, companies, individuals, landlords, etc. print your flyers and business cards and distribute them. Register your business name. Go round town and inform people about your business. go to places where people are building houses. Talk to them about your business and how you can assist them in the supply of materials.
Ensure also that you obtain your supply direct from the manufacturers or producers. This will help you to buy at cheaper rates.
5. Building Contract
More often than not, government institutions are involved in one building project or the other. Individuals and companies are also building houses.
Usually, the most convenient method most institutions adopt is to contract their building project to building contractors.
You need to be an architect or a civil engineer to succeed as a building contractor. You only need to be attentive and current with latest development in governmental institutions and the society, so that when an invitation or tender is made, you can respond.
How do you make estimate for a building project? Well, you need not worry about that. Real estate surveyors and valuers are always available to help you arrive at cost estimate for any building project. Architects and other professionals are always there when the need arises.
For now, what is most important is registering or incorporating your business and launching your advertising campaign.
6. Block Making
Block making is another lucrative business in the country. Our towns and cities are expanding by leaps and bounds. Houses are built everywhere, and most people prefer buying blocks of cement rather than take the trouble moulding their blocks.
Although block making requires capital, you can start small, using hand mould device to mould your blocks.
At any time you want to start you only need to hire a bricklayer and one labourer. You pay them per day. The day you don’t have work to do, you don’t hire them.
Nevertheless, you should endeavour to ensure you have hundreds of blocks on ground. Block is not a perishable commodity that would rot within few weeks or months. The nature of this business is that you produce in anticipation of demand. Buyers may come anytime.
So, from the onset, you must have some money for buying materials for building of hundreds of blocks.
Of course, you must also advertise aggressively, because if people don’t know about your business, they won’t patronise you.
You can also start on a sound note by buying several machines needed in the block industry. These require capital though.
Among the machines are block making machine and electric vibrator. You can also buy large plastic tanks for storage of water. If you are considering a long-term plan, you can even think of sinking a borehole to permanently solve the problem of supply for your block industry.
7. Estate Development
Estate development business is concerned with making improvement on land and selling it for a very high amount.
The way it is done is that the real estate developer buys a piece of land, builds a house or houses on it, and then sell s them.
Doubtless, real estate requires huge capital. But as we always say, you can start from somewhere. You can start as a real estate agent or finder. You can then amass money which you can use to build a housing unit and sell.
Don’t forget to avail yourself of the mortgage opportunities offered by primary mortgage institutions and other financial institutions in the country.
Note that primary mortgage institutions and banks are always willing to lend to real estate developers, provided they have properties they can present as collateral.
