3. PROPERTY DEVELOPMENT. This is where you find the top players in real estate. This involves you buying land and developing it into luxury apartments, commercial structures and so on. This also involves getting a really good location. What differentiates it from the open space leasing is that this one you actually build and develop the property and this is really capital intensive.
After the development, the property is traded at a very high profit margin that is why this is really one of the top shots in real estate where you find people like Jim Ovia, Mrs Folorunsho Alakija, Sijibomi Ogundele, even our own Oba Adeyeye Enitan Ogunwusi etc. There’s hardly anyone you’ll find that amasses wealth that they don’t have large real estate investments. So, if you want to go into this aspect of real estate you need to have your money ready and like I said previously – location is key and really important.
4. HOUSE AND OFFICE RENT. This aspect of real estate is as old as land ownership itself. This involves buying or building property and putting it up for rent and they (tenants) get to pay you periodically. One thing about this part of real estate is that, in most cases the landlord is the one responsible for maintaining the property. So, what they do in this aspect is charge enough from their tenants for the maintenance of the property and of course bring about the profit. If you want to go into this aspect of real estate, once you get your property, research from other landlords in the area that have similar properties to know how much the value of that location. This aspect of real estate takes time and you can employ the aid of a property manager.
5. REAL ESTATE AGENCY. This one includes ZERO CAPITAL. It is not about investing money but rather about service rendering. It involves seeking for properties to lease or sell and marketing the properties, connecting buyers and sellers together, getting clients for property owners and vice versa, linking them to the property of their choice. How this works for you is that you get paid a certain commission depending on how much the property is sold or rented.
This requires little or no capital to start but on the long run if you are smart enough you can become a giant real estate investor yourself because it doesn’t make sense that you are at the center of it all and you lose out of it.
Also another advantage is that you get to know a whole lot of deals and you get to know where you can find cool deals for yourself when you want to start investing. You don’t want to be like a signboard that is inviting people to a party but does not get to attend the party itself – do you?