Flipping real estate properties can be a very lucrative business anywhere in the world, but it can be expensive to manage too.
In Nigeria, flipping homes is not that popular, as it is regarded as the craft of the affluent and real estate savvy professionals.
But do you know that anyone armed with the right information can start flipping real estate properties like a pro and start making good money?
Well, now you know.
In this post, we’ll look at some crafty ways to make money by flipping properties in Nigeria even if you have no money.
So, there’s really no excuse for you not to start flipping some landed properties if you really want to.
Let’s dive in.
Lease Foreclosed Homes
The cheapest way to get good real estate property deals is to shop at the foreclosed department.
Most mortgage and commercial banks have lists of foreclosed properties they are willing to let go at the right price.
In fact, sometimes, they can be desperate to sell so as to get their money out and into other interest-bearing vehicles.
This is where you come in.
With the right offer, you could get yourself a sweet deal that puts money in your pocket on a consistent basis.
For example, you could offer to put a 12-month down payment and promise to pay the subsequent payment of the property at a reduced rate over a period of time.
Then look for a property renter to pay you more than you would be paying the bank periodically throughout the duration of the deal.
For example, if you pay the bank a 2 million Naira down payment and promise to pay 1.5million Naira over the next 10 years, you could get a tenant that pays you 2.5 million Naira annually to rent the property.
In 2 years, you would get back your initial commitment and then earn a passive income of 1 million Naira per year if the tenant continues to renew the tenancy.
Broker Real Estate Deals
For people without capital to invest in property deals, you could find and broker deals to earn a commission.
This is also a form of flipping properties, as you would present your company as the handler of the property, and broker the deal with the property owner or bank on behalf of the buyer or renter.
Flip Real Estate Contracts
This is also a good option if you have no money to make an initial commitment.
You could flip real estate contracts in the form of REITs, foreclosed deals, and other property deeds.
You don’t need to own anything. All you have to do is know where to source the right property deeds, get a good legal team, and know how to pitch the right buyers.
Crowdfund Real Estate Investment
As we all know, crowdfunding is here to stay, and it could be utilized in real estate deals as well.
You have to create a real estate investment company that has partnerships with experienced real estate developers, with verifiable property portfolios.
Then, you create a crowdfunding platform with a marketing campaign to start attracting investment.
Note that you may need a license from the SEC to operate a real estate crowdfunding platform in Nigeria.
Convert Rental Apartments
This is the ultimate real estate flipping business.
Converting a rental apartment to one that gets more derivatives from the same investment.
If you have the funds, you can purchase rental properties such as a block of flats, and convert it into a more yielding property such as a short let apartment.
All you have to do is refurbish and furnish the property, then put a management and maintenance team in place.