In the last blog, we discussed how to invest in real estate in Nigeria as a beginner. A lingering thought would be how these real estate investment projects would be funded in Nigeria. There are several methods you can deploy to kick start your investment journey, some of which are as follows:
1. Taking from your personal finances
The most common and most intuitive in this part of the world, you can easily fund Real Estate projects from savings and salary depending on your pocket and the scale – there is something for every pocket and every size!
2. Take advantage of Payment plans
It’s not a must for you to have millions ready in order to buy a land, you can still benefit from a variety of payment options. After putting down a stipulated payment – a fraction of the cost, you can spread the remaining payments, for a month, three months, six, 12, 24, even 2-4 years.
3. Bank Loan
Another way to fund real estate projects is through collecting bank loans. Many real estate developers and businesses use this strategy, even though it is not well known to the general public. It’s all about using someone else’s money and channeling it to Real Estate projects. Even in this region of the world, where banks are typically hesitant to lend money to individuals or companies, they are happy to open their checkbooks for real estate projects and developments. Also, even after collecting gains from their real estate investment projects, most companies are still able to reach their financial targets.
4. Crowdfunding
A project can raise money using crowdsourcing, which is essentially asking a lot of people to make tiny donations online. Crowdfunding platforms come in various varieties, each with unique conditions and specifications. Real estate investors can use crowdfunding to raise capital for their investments by developing a thorough fundraising campaign on a crowdfunding platform. While some platforms offer incentives, others allow investors to earn small amounts in exchange for a share of the profits
5. Joint Venture
A joint venture (JV) is an arrangement in which two or more parties come together as business partners to jointly undertake a specific venture. In real estate investing, multiple investors come together in a joint venture to raise capital for a property investment. They contribute money, resources, or expertise to the project. For individuals wishing to pool their resources for certain investment opportunities, joint ventures might be a great option for financing real estate.
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In conclusion, real estate investment in Nigeria is a great to make money. Most real estate development projects need outside funding of some kind. You have the option to use debt sources, friends and family, crowdsourcing, or other financing sources to fund your project. You are ultimately responsible for managing the costs and expenses associated with your initiatives under all situations.
