Guidecrest got you covered in a comprehensive directory on how to become a real estate developer.
Becoming a successful real estate developer requires years of experience and consistency.
In this article, we will discuss In Detail how to become a real estate developer, requirements, what a real estate developer does, and lots more.
What Is Real Estate
Before we proceed to how to become a real estate developer, we need to throw some on what real estate is.
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this an item of real property, buildings, or housing in general.
They are real property. They are different from personal belongings such as clothes, furniture, jewelry, kitchen utensils, etc.
There are five main types of real estate: residential, commercial, industrial, raw land, and special use.
You can fund real estate directly by buying a rental property, or other commodities, or indirectly through a real estate investment trust (REIT).
Who Is A Real Estate Developer
Don’t you want to know who a real estate developer is before we proceed to how to become a real estate developer?
A real estate developer is a person or group of persons ( company) who buys and develops houses, buildings, and land to sell them and make a profit from them.
Real estate developers venture into an entrepreneurial role in developing the built environment in acknowledgment of the needs of the community and the market.
This real estate developer can be Government entries, NGOs, and firms that create, renew or rebuild environments where private organizations do not address the necessities of the society.
What Do Real Estate Developers Do?
A real estate developer comes up with ideas that cater to the needs of the community, they bring together the people and the resource required throughout the development process.
The developer must manage the people and the process put together.
A real estate developer develops the structure that fulfills the need of society and reflects our communities. To become a real estate developer you have to know what a real estate developer does.
Here is a list of other things the developer does;
- A Real Estate Developer Respond To Needs In The Community And The Market
- Real Estate Developers Create And Respond To Ideas And Visions
- Developers Must Justify The Viability And Feasibility Of Their Idea
- A Real Estate Developer Bring People Together
- Developers Manage The Process To Completion
- A Developer Must See Each Project Take On A Life Of Its Own
A Real Estate Developer Respond To Needs In The Community And The Market
The needs a developer fulfill are diverse and much. Community needs that are responded to by the developer are buildings like, Office buildings, industrial warehouses, shopping centers, apartment buildings, and planned communities, etc.
For example; Industrial buildings concede to a company’s need to store goods or use raw materials to manufacture products.
Retail shopping centers respond to a community’s need to purchase products, and associate. Apartment buildings meet the need for people to have a place to live.
To become a real estate developer, you must observe and assess each of these needs. They must then come up with an idea and concept of how to respond.
Real Estate Developers Create And Respond To Ideas And Visions
Once the need of the community is identified, the developer has to develop ideas to meet up the needs of the community.
The developer comes up with ideas with the help of their architect and brokers. Many ideas can be tried and true.
Several developers may have a standard procedure and set of plans they’ve used before. Like building may be the same for most and may differ depending on the idea and vision set up.
Their main objective is to take advantage of a window of opportunity and get a project developed and sold before the window of opportunity in the demand market closes.
Developers Must Justify The Viability And Feasibility Of Their Idea
After an idea is developed, the real estate developer must research to make sure the idea in
question is feasible. The developer must venture into due analysis to know if the business Idea is valid or not.
Once the monetary viability and feasibility of the project have been ascertained, the developer can begin swiveling the idea into a reality by engaging the various professionals and firms necessary to execute the project.
A Real Estate Developer Bring People Together
The developer tends to bring multiple people together during the development of a particular area.
They will need to bring the outside stakeholder, the local government officials, the community heads, the architect, neighbors, and members of the community as a whole to have a say in facilitating the growth of a project.
The real waste developer has to listen to everybody’s point of view and provide everyone with a common ground.
Developers Manage The Process To Completion
The process of development requires time, capital to fund and make sure to put multiple numbers of people involved in the order.
The real estate developer is present from the beginning of a project to the completion to make sure everything goes according to the plan.
Throughout the development of the project, the developer makes sure to engage professional expertise for their viewpoint.
They will also interact with different Government agencies for authorization or license.
How To Become A Real Estate Developer in Nigeria
Becoming a real estate developer requires a lot of experience in real estate-related fields.
To become a real estate developer, requires a lot of willpower, exposure, confidence, interaction with people, etc.
Here are some of the tips for becoming a real estate agent in Nigeria.
- Find A Location That Suits Your interest
- Get A Real Estate License
- Study Up Most Real Estate Regulation
- Form A Team With People You Trust
- Work With Investors
- Research Well On Real Estate Market
- Learn How To Manage Your Finance
- Marketing And Branding Your Business
Find A Location That Suits Your Interest
You need to obtain an area that is more suitable for you. Depending on the type of real estate you want to venture into.
Like renovation of buildings, development of new buildings, and management of the existing property.
Make sure to get an area that best suits this interest in meeting the purpose of this job which is excelling.
Get A Real Estate License
You will need a license in the long run as a developer. That means you will need to get this license in time before forming a team so that there won’t be any limitations to your success in real estate development.
To get your license as a real estate developer you will need to read and sit for a state-issued exam.
Study Up On Real Estate Regulation
To become a real estate developer you have to learn a list of state and local regulations in building to excel in your job as a real estate developer in Nigeria.
Know these rules to avoid investing in properties that are not valuable. This means you can maintain your building according to the safety rules.
Form A Team With People You Trust
To become a real estate developer you will need the collaboration of different people in different works of life.
Ranging from attorneys you work with as your legal practitioner to architects designing your building, investors that will invest their capital, and another development team.
Make sure you work with people you trust and are comfortable with to help in every process of development.
Work With Investors
Are you a young developer that just ventured into real estate? Or are you thinking about how you will go about capital?
You will need to find investors to invest in your network. Build successful projects that will help you convince investors to invest in your company.
Research Well On Real Estate Market
Know the demographics of any area you might be interested in. For example, if you are looking to develop in areas full of young men and women, you’d probably have to build condos and
mansions to suit the younger people’s lifestyles.
Also, read a book relating to real estate in other to know other individuals’ success stories. And also know if it will work for you.
Learn How To Manage Your Finance
Financial Management is an important factor in becoming a real estate developer. Take classes that teach financial management.
Learn to manage your finance properly in other to become more with this side of the job.
Marketing And Branding Your Business
To succeed as a developer you will need a very good marketing strategy. If no one knows what you are capable of as a developer your business will remain stagnant.
You have to make use of these strategies to become successful
Online marketing (social media, Google ads, etc.)
- Referral marketing
- Newspaper marketing
- Word of mouth
you will also need to set up your own real estate website. Brand your website and make it interactive. Permitting clients to ask questions, see photos and videos of available property.
Real Estate Developer Registration Requirements In Nigeria
To become a real estate developer you will need a few things to register with to get your license.
Because the federal government does not allow real estate developer that doesn’t have a license on their premises.
All these requirements are needed to reduce fraudulent activities, imposters who claim to be housing practitioners, and individuals whose sole objective is to defraud unsuspecting members of the society who engage in leasing, renting, and buying property.
The requirements for registration in Nigeria are:
- Evidence of CAC registration
A real estate developer is supposed to register with the corporate affairs commission to have a registered business name.
- Means of Identification
You must have a means of identification in case of misunderstanding and also during your CAC registration.
- Operational Office Address
you must have an office where all operations like paperwork and other activities that do not require visiting a site are carried out.
- Minimum Qualification (Senior School Certificate Examination SSCE)
To become a real estate developer in Nigeria, it is required that you must have at least your senior school certificate examination.
This is the certificate obtained after seating for the secondary school examination.
Real Estate Professional Institutions
These are some professional institutions that you need to register under as a real estate developer:
- Nigerian Institution of Estate Surveyors and Valuers (NIESV)
- Real Estate Developers Association of Nigeria (REDAN)
- Association of Estate Agents in Nigeria (AEAN)
Some Other Real Estate Career Opportunities
These are other estate opportunities that are available in Nigeria;
Real Estate Agents
I know you will be asking yourself the difference between developers and real estate agents?
Real estate agents can be called realtors or real estate brokers.
They are licensed individuals who stand as a middleman between the buyer and seller of a real estate property, acting as a negotiation representative.
And when the sale is successfully made the agent receives a commission. A real estate agent requires little or no profit to start up.
As a real estate agent what you make depends on how many people you were able to convince to buy or sell real estate property.
Therefore you have advertised properties the seller is willing to sell on social media, google ads, etc.
Agents are supposed to be present all time to answer questions about a property, negotiate a higher price for the seller, find out more about the buying and then close the deal.
Real Estate Legal Consultant
You can serve as a legal consultant in this field if you are very conversant with laws guiding properties. You can earn a living by serving as a legal consultant in real estate.
Blogging About Real Estate
This is another way to partake in making money in real estate. You can use your writing skill to write well-detailed articles to answer people’s questions.
And at the long run can attract advertisements from real estate companies.
These are individuals that buy lands and quickly resell to make profits.
This real estate career requires a larger amount of money than the real estate agent. There is always huge profit potential attached to it.
This part of real estate involves acquiring land in a very good location and leasing it out to people and getting paid based on agreement.
The good thing is that you will be paid for your land while on lease while it appreciates for future sale.
Here the individual will buy land if he/she doesn’t have one, then build structures like houses, offices, and shops and rent it out for payment on a yearly basis depending on how you want it.
With a shop complex or hostel in a good location, you are sure to have a lot of profit from rent. This is very lucrative depending on the location.
READ ALSO: How To Make Money As A Writer
Real estate development is a goldmine investment. Become a developer today to partake in this lifetime investment.
In the words of Louis Glickman, “The best investment on Earth is earth.”
I hope this article on how to become a real estate agent was helpful to you. Do well to let us know your thoughts in the comment section.