How To Fund Your Real Estate Investment Projects in Nigeria using these 6 key concepts

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 Real estate development in Nigeria can be a lucrative business with the right funding and strategic thinking.

There are six key ways to fund your real estate investment  in Nigeria:

1. from your own savings

Most of the time in Nigeria, if you want to start a real estate business, you can fund it from your savings. that is if you have the capacity because it's not easy to get loans

2. flexibility from Payment Plans

You may not be able to shell out millions immediately out of pocket but there are different payment plans you can take advantage of.

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, or even 2–4 years.

Most times these come with a little interest attached after the third month, but some are even interest-free, up to 4 years! like Landwey’s development at Oworonshoki.

3. Loan from financial institutions

Maybe not so popular with individuals but lots of Real estate developers and companies take advantage of this method. It’s all about OPM (other people’s money) and channelling it to Real Estate projects.

Banks even in this part of the world that are usually not poised to give people and businesses loans gladly bring their chequebooks out for Real Estate developments and projects.

The interest rate might be a conversation for another day, but most companies meet up, even after taking profits from their Real Estate Investment projects.

4. Cooperative societies

This is very popular in Lagos, as groups of individuals, companies, and organizations come together to pool funds together and fund real estate projects. There is flexibility in the payment terms and as a group they can purchase land in bulk, start development simultaneously and secure the land, rather than doing it as a lone ranger among so many wolves!

A popular co-operative in Lagos is the Chevron cooperative — with a long list of investments in their real estate portfolio namely; Nicon town estate, Chevron Drive, Northern Foreshore estate and a couple of estates in Abijo GRA and opposite Fairfield Apartments Abijo.

5. Sponsorship deals

some people with a bulk amount of land usually don’t have money to develop so every now and then when they want to raise money for themselves, they partner with developers and sponsors to develop and sell their land.

This method is called sponsorship.

In turn, they offer you plots as compensation, commensurate to the volume of land you do work on.

This is how big companies like Landwey, Pwan, Veritasi, Revolution Plus and other companies get bulk land in Ibeju Lekki and Epe.

6. Joint Ventures 

Joint Ventures are another way to fund Real Estate Businesses and investments. They are usually two, three or more parties involved;

The owner of the land, the developer is interested in developing and putting infrastructure on the land/property and The investor; most times the developer and investor are the same, but other times, the investor pools funds together to either implement the project or contribute to the project for an expected return when the property is sold or rented.

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