Have you heard about house flipping business in Nigeria? Do you know you can make money by starting a house flipping business in Lekki, Nigeria?
This article is crafted to help you learn the ropes about house flipping in Nigeria and help you master the art of house flipping.
House flipping is one of the numerous ways you can invest in real estate in Nigeria. Real estate has grown to become one of the biggest movers of the Nigerian economy.
Persons living in certain cities in Nigeria have discovered this salient way of making money and many have made millions doing it. We have listed some of the Nigerian cities where house flipping can be practiced under the session cool cities to perform house flipping in Nigeria.
One of the many recommendations I would give to persons who want to venture into the real estate industry is to try out house flipping first. It is perhaps one of the best ways to begin sojourning on the path of real estate business in Nigeria.
Like I said earlier on, this post is targeted at providing you with concise, in-depth insight into the intricacies of house flipping business in Nigeria, how to start a house flipping business, and cool cities in Nigeria for house flipping.
What is House flipping?
To define house flipping, permit me to use this illustration:
Suppose you buy a house from someone at a fairly low price and then you sell the house to another person at a price higher than the original price. This is all that there is to house flipping.
House flipping is the process of buying a house with the intent of selling it at a higher price to make a profit.
The idea is to purchase a house and when you sell it, you do so at a price higher than the original price you bought it.
Literally, you may have purchased the house for N2million and maybe because the area where the house is located begins to develop and houses in that area began to be sold for N5 million. When you sell the house, you make a profit of N3 million naira.
The reason why it is called house flipping is that you do not make significant changes to the house. You simply buy it and when its value increases or you get a bidder who’s willing to pay you higher than you bought it, you sell it.
This practice is solidified when the person has a vast knowledge of the real estate industry. This knowledge is particularly important in order to find cheap houses that have the potential of increasing in value and then sourcing buyers who are willing to buy at a higher price.
You do not have any knowledge of the real estate industry? Do not let your ignorance rob you of this viable opportunity. It is easy for you to outsource this work to certified real estate agents.
Benefits of House Flipping Business in Nigeria
If you are still contemplating going into this business or not, I hope this section convinces you.
House flipping can bring in a lot of cash as it is a great way to make money in a less demanding manner. You can be into the house flipping business while you keep your 8 am to 4 pm job.
Here are a couple of benefits you stand to gain when you start house flipping business in Nigeria.
One of the issues facing many civil servants and businessmen alike is exercising control over their time.
Nobody wants to be under the burden of meeting deadlines or having to dedicate all their lives every day to a job.
We all want to be in control of our lives and our earnings and that means having control over time. Being able to decide when to work and when not to work.
This is one of the benefits of house flipping business. It gives the allowance and allocation to exercise control over your time.
In essence, the business is not time-demanding as you can carry out even on a “kum-kum” level. It will be a great option if you are looking for a side hustle to support your 8 am to 4 pm job.
I can bet that 70 percent of the Nigerian population does not know that there is a business like a house flipping let alone practice it.
In lieu of this fact, it is safe to say persons who are already in the business or contemplating going into the business will have a lot of space to function in.
The house flipping business niche is yet unscratched and like the saying goes “the early bird catches the worms”, starting the business will help you scale up your income drastically.
Profit Making From Underdevelopment
Even though underdevelopment is a bad thing, I can help but list it as part of the benefits you enjoy when you start your house flipping business.
There are so many underdeveloped cities in Nigeria and buying a house in these cities will be at a low cost.
Even in major cities of Nigeria such as Abuja, Lagos, Port Harcourt, and so on, there are places that are still underdeveloped.
Buying a house in these areas will come at a pretty low cost and as development begins to set into those areas, the value of the house you bought increases.
This is not a one-case-fit-all situation. Some areas may not be close to being developed in the nearest future. So it is important to study areas that are susceptible to development and purchase houses in those areas.
Also, engaging in this business requires patience. If you are a lover of getting rich quick schemes, house flipping is certainly not for you.
Important Things To Note About House Flipping
Just before you venture into this business, there are two things that are important for you to take note of.
1. Find Very Cheap Houses
The goal of house flipping is to find cheap houses. If you get a house at a high price, it would reduce your profit range.
What you should always look out for when you begin your house flipping business is to find very cheap houses.
Where you buy the house you intend to flip matters. There are places where this house flipping business will fail at its start and even if it survives it will do so for a while.
In the latter part of this article, I will show you cool cities to flip houses in Nigeria.
How To Start House Flipping Business in Nigeria
I believe you are already convinced about going into house flipping. Now, let me guide you through the ropes on how to start house flipping business in Lekki, Nigeria
1. Proper Background Check
The first step to take as you start out in the house flipping business is to run a background check and to do it well.
Failing in this first step is tantamount to failing in the entire business. You must be careful, diligent, and circumspect as you run your background check.
The goal of the background check is to help you find areas that are either developing or would soon be developed.
Buying a house in areas that are already developing will speed up your income generation. On the other hand, buying a house in an area that would soon be developed may demand some patience.
Whichever way, do make sure that the areas fall into any of the two categories before you purchase a house in them.
Should the process be difficult for you, you have the option of outsourcing the job to a real estate agent.
These agents have their way around deciphering which part of the country or of a city is close to being developed and how the value of lands and housing would be projected.
Once you have found a location and a house to purchase, on the basis of the counsel you get from your real estate agent, you can put forward an offer.
Hold your horses!
There’s a growing risk of scammers and unscrupulous agents. To this end, you must have the following checked before you buy a house anywhere in Nigeria.
Are you dealing with the rightful owner of the house?
Does the owner have the required documents by law for a house in Nigeria?
Are the documents presented authentic? Ensure you check at the local land registry.
Do you know the actual worth of the house? Your real estate agent can supply you with information in this direction.
The other checks above will require that you engage the services of legal personnel.
2. Work On The House
Now you have bought the house and have secured all the documents of ownership, you can decide to work on the house.
Though this is optional (you can leave the house as you bought it), the value of the house will definitely increase if you make some necessary renovations to the house.
It is possible the house does not have utilities such as water and electricity. You can make provisions for these utilities by drilling a borehole and connecting the house to power cables.
The goal in this step is to do whatever you can to increase the value of the house. You can decide against it if your budget will not support such projects.
Nonetheless, if your calculations were correct during your background check, you would still experience an increase in the value of your house.
3. List The House With Real Estate Agents
It may be difficult for you to find buyers for your house all by yourself. To overcome this challenge, you can add the house to the list of houses for sale by contacting real estate agents.
This cuts across getting the house in the faces of potential buyers by advertising. You will need to work closely with your agents so that the house is presented in the most attractive manner ever.
You can run targeted ads on Facebook or meet your local radio or TV station to help you with publicity.
4. Sell The House
Everything was done well and you now have a buyer. Sell the house at a good asking price. Do not give out the outrageous asking price because you want to make a profit at all costs.
Cool Cities For House Flipping in Nigeria.
Like I promised and as a way of concluding, I have listed some very cool cities for house flipping in Nigeria These are beautiful cities and can give a higher ROI Than you stand to get when you venture into house flipping in Lekki.
Other cities include Kano, Port Harcourt, Okrika, Etche, and much more.