Land property development – or Real estate development, as it is also called – is a profession that involves purchasing landed property/real estate, and developing already existing structures/buildings on it or building new structures/buildings and selling them for a higher value.
A Land property developer – or Real Estate developer – is thus involved in purchasing Real Estate, developing it, and selling it for a much higher value. The developer could either be an individual or a corporate entity/organization.
Land property development is a very lucrative profession in Nigeria and one of the major ways to make legit money in the country. Real Estate is a highly coveted asset in Nigeria, and as such, potential investors in Real Estate development have much to gain monetarily should they go into the field.
How to become a land property developer in Nigeria
Becoming a Land property developer can be a little bit difficult, especially when it comes to generating startup capital and finding suitable locations to purchase land and develop it. As a Land property developer, you must have a keen eye for spotting locations where Real Estate valuers are likely to go up over time, especially locations that have a huge potential for urban development.
This would require you to do proper research on areas of interest to be able to know how much potential they possess. Briefly, we’ll outline the basic steps you can take towards becoming a Land property developer in Nigeria.
1. Find locations with huge market potential
As earlier stated, as a Land property developer, you must have a keen eye for areas and locations where real estate values are likely to go up with time. This is important because if you choose a location without potential and develop structures on it, you will eventually lose out as you may not get a buyer or may sell the structure at a very low price.
So it is very important you do proper research before choosing a location. Find out everything there is to know about the area you want to develop. Study the businesses, churches, schools, etcetera that are in and around the area. This will give you an idea about the market potential of landed property around the area.
2. Develop your negotiation skills
After finding a location with huge market potential, as well as a land of your choice you’d like to purchase ahead of development, the next thing is to negotiate with the seller of the land.
As a Land property developer, you must master the art of negotiation so as to be able to buy landed property at relatively low prices and get the better end of the deal when you eventually develop it and sell it for a price much higher than you initially bought it.
3. Solicit for investors and funds
Land property development requires a lot of money. Purchasing land and developing it is no easy monetary task. As a Land property developer, especially as a startup developer, you need to get investors to invest in your project.
These investors will find the construction of your projects. Most startup developers also collect construction loans from banks to carry out projects. However, before you’ll be given a loan by any bank, you’ll be required to provide 10-20% of the total amount required for the project. This amount is called equity. Banks require this amount before they’ll give you a loan.
Your equity can come from you or your investor. You’ll also be requiring the services of a lawyer who’ll handle all the legal sides of the job. Your negotiation skills also come into play here, as you’ll need to convince your investors on why they should invest in your project. No one wants to invest in a project where they’ll be at loss.
3. Have a team
Like every other profession, you cannot do all the work alone. In other to succeed as a Land property developer, you need to be surrounded by experts who know what they’re doing when it comes to land property development.
One of the major team members you’ll be needing is an architect. Your architect will handle the design and planning of the structure, as well as the draft financial projections of carrying out the development project. You’ll also be needing a contractor and construction workers. In order to assemble a good team, speak to other land property developers for recommendations on trusted individuals they have worked with or are currently working with.
4. Get in touch with other property developers
One of the major ways to learn any profession is to join a community of experts who have thrived in that profession and tap from their knowledge and experiences. As a startup land property developer, it is important you do this.
Get in touch with top property developers around and learn from them. Ask questions. Find out the mistakes they made and avoid them. Find out how they paved their way to success. You’ll need all the knowledge and insight you can get if you want to succeed as a land property developer, so don’t shy away from learning from the top dogs in the business.
5. Work under another land property developer
Another major way you can get into Land property development is to work under another Land property developer. This is a very good way to start, as it offers you the advantage of learning firsthand from an expert in the field. Under the tutelage and guidance of a more experienced Land property developer, you get to see for yourself what Land property development entails and what it takes to do the job.
You also gain valuable experience, as you’ll be embarking on several development projects alongside your boss. With this wealth of knowledge and experience, when you eventually decide to go solo and start up your own property development firm, you’ll find that the road to success is much smoother for you to ply on.
Read Also: Cost of building a 2 bedroom flat in Nigeria
6. Start small
As a startup Land property developer, it is advisable you start with small projects. This is because you may not exactly succeed with your first project. Starting small would put you on the safer side if your first project doesn’t exactly go as planned.
Also, you do not have enough knowledge and experience to handle bigger projects. Smaller projects are more within the range of your capacity, so it is better you start there. As you successfully complete your smaller projects and gain experience, you can then move on to bigger and better things.
Land property development is one of the most lucrative professions in Nigeria. This is majorly because of how valuable landed property and Real estate is in the country. While it is not easy to start, when done right, it can open doors of wealth for those involved. We hope this article has been helpful in informing you about Land property development. Let us know in the comment section.
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