• Tuesday, November 28, 2023
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Here are 5 ways to invest in real estate with little money

The crucial factors for investing in off-plan properties in Nigeria

Arguably, every adult Nigerian would like to have a piece of real estate, either for housing and accommodation, or investment purposes. Unfortunately, this wish almost always ends up as a mere dream.
The reason for this is that real estate, for whatever purpose it is needed, is believed to be capital intensive and most people, including those with ‘can-do’ spirit run away from it because, in their mind, it is an investment asset class for only the rich.

But investment experts advise that people should not be discouraged from investing in real estate, pointing out that there are simple ways through which they can invest with little or no money.
“You don’t need to be a millionaire to get started in this business. In fact, there are several creative ways to invest in real estate with little money,” they assured, listing five ways that include fractional home investment, lease options, private money lenders, crowd-funding and working as real estate agent.

Fractional home investment
In this option, the seller of the property acts as the lender and allows the buyer to make payments on the property over time. This is where the Stow Fractional Investment Plan comes in. The plan simplifies and reduces the cost of investing in select real estate assets and delivers guaranteed returns and capital gains on investment within a defined time period.
Lease options or Rent-to-Own

In a lease option, the investor rents the property with the option to buy it at a later date. This can be a good option if he needs time to save up money for a down payment. A modern version of this is what the operators call ‘Rent-to-Own’ where a tenant rents a house and pays rent monthly or quarterly until he off-sets the value of the property and owns it.

Read also: 6 things to consider before investing in off-plan property

Private money lenders

Private money lenders are individuals who lend money for real estate investments. This can be a good option if an investor has a strong network and can find other investors who are interested in investing in real estate.

Real estate crowd-funding

Crowd-funding is a relatively new way to invest in real estate. In it, a group of investors pools their money together to invest in a property. They share whatever comes as yield from the investment.

Working as real estate agent

Real estate agents typically make money through commissions earned on successful property transactions. They serve as intermediaries between property owners or sellers and potential buyers or renters, helping to market, advertise, and showcase properties to interested parties.

When an agent successfully connects a buyer or renter with a property and a transaction is completed, he earns a commission based on a percentage of the total value of the transaction. The commission rate may vary depending on various factors, such as the location and type of property, the level of competition among agents, and the negotiating power of the parties involved.
In addition to commissions, some real estate agents may also charge additional fees for services such as property valuation, property management, and legal documentation. These fees can also add to the agent’s overall income.