Why You Should Invest in Lagos Free Trade Zone - Explained

<h1>Beachfront and Waterfront Estates in Lagos; Investment Goldmine</h1>
<img src="//images.ctfassets.net/abyiu1tn7a0f/4JQprphYZBwhGf81DNR5f/a28dc3b3dbbd01cbe12e9b830df2d957/gracias-waterfront-estate.jpg" alt="gracias-waterfront-estate">
Lagos Nigeria is flanked by both the Atlantic ocean and the lagoon. With an amazing shoreline and hectares of coastal real estate, you can take advantage of this premium real estate for your beachfronts.
<iframe width="560" height="315" src="https://www.youtube.com/embed/LxDw6f9R56c" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

Beachfront and Waterfront Estates: Massive Opportunities

<h1>How to fund Real Estate Investments in Nigeria</h1>
Knowing what you do about <a href="https://ownahome.ng/blog/how-to-invest-in-real-estate-in-nigeria-top-12-things-you-need-to-know/">Real Estate Investments in Nigeria</a> and how lucrative it is - how do you fund these projects?
There are several methods you can deploy which include:
<h3>i .) Out of pocket</h3>
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!
<h3>ii.) Take Advantage of Payment Plans</h3>
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, 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&#39;s development at Oworonshoki.
<h3>iii.) Bank Loans</h3>
Maybe not so popular with individuals but lots of Real estate developers and companies take advantage of this method. It&#39;s all about OPM (other people&#39;s money) and channeling 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 cheque books 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.
<h3>iv.) Cooperatives</h3>
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.
<h3>v.) Sponsorship deals</h3>
Ancestral land owners (also called omo ni ‘ile) with a bulk amount of land usually don&#39;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 is a method 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.
If you want to invest in Real Estate in Nigeria, <a href="tel:+2348101536132">Click to Call us</a>, or <a href="https://wa.me/2348101536132">Send a Whatsapp message</a>, or <a href="mailto:emordiuche@ownahome.ng">Email us</a>.
<h3>vi.) Joint Ventures (JVs)</h3>
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 (usually owned in a prime area or a massive expanse).
The developer that is interested in developing and putting infrastructure on the land/property.
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.
If you want to invest in Real Estate in Nigeria, <a href="tel:+2348101536132">Click to Call us</a>, or <a href="https://wa.me/2348101536132">Send a Whatsapp message</a>, or <a href="mailto:emordiuche@ownahome.ng">Email us</a>.
Also check out: <a href="https://ownahome.ng/property/for-sale/abuja/wuye">houses for sale in wuye abuja</a>, <a href="https://ownahome.ng/property/for-sale/abuja/guzape">houses for sale in guzape abuja</a>, <a href="https://ownahome.ng/property/for-sale/abuja/katampe-district">Cosgrove Katampe</a>, <a href="https://ownahome.ng/property/for-sale/house/abuja/mabushi/cosgrove-smart-estate-mabushi/">Mabushi Abuja</a>, <a href="https://ownahome.ng/real-estate-companies/cosgrove/">Cosgrove Abuja</a>.

How To Fund Your Real Estate Investment Projects in Nigeria

<h1>How To Choose The Right Real Estate Investment Strategy</h1>
Broadly speaking they are four (4) major <a href="https://ownahome.ng/blog/how-to-invest-in-real-estate-in-nigeria-top-12-things-you-need-to-know/">Real Estate investment</a> strategies:
<h2>i.) Rentals:</h2>
Rentals are one of the oldest, safest, and most steady source of income from Real Estate. 
In Rentals, you buy a property to put on the market for monthly or yearly rental. 
It has a lot of upsides like; regular cash flow, asset appreciation, collateral for loans, and property can be sold afterward for a profit.
The downside is that just like in many numerous Lekki and Banana island apartments, you may experience non-subscription of your apartment for long periods. 
A company like First World Communities handles rentals in a prime place like <a href="https://ownahome.ng/property/for-sale/lagos/abijo">Abijo</a> and a 3 bedroom flat there goes for NGN1.2m per year with a property worth of 25m. 
Dangote has taken out a lease for over 50 units and you can make guaranteed rental income of NGN800,000 per annum by buying these properties as a rental investment.
To find out more about rental investments, in Nigeria <a href="tel:+2348101536132">Click to Call us</a>, or <a href="https://wa.me/2348101536132">Send a Whatsapp message</a>, or <a href="mailto:emordiuche@ownahome.ng">Email us</a>.
<h2>ii.) Flipping of land and Houses:</h2>
Also referred to as land/property banking - you purchase a property to sell in the quickest time possible for profit. 
A company that works well with this strategy is <a href="https://ownahome.ng/real-estate-companies/gracias-global">Gracias Global in Lagos</a>.They have prime properties all around <a href="https://ownahome.ng/property/for-sale/lagos">Lagos</a> in <a href="https://ownahome.ng/property/for-sale/lagos/sangotedo">Sangotedo</a>, <a href="https://ownahome.ng/property/for-sale/lagos/eleko">Eleko</a>, Ibadan and some of these properties, with strategic locations like in <a href="https://ownahome.ng/property/for-sale/lagos/eleko">Eleko junction</a>. 
They have the gracias Morganite, Goldstone and Peridot heights, off lekki epe expressway Lagos. 
<img src="//images.ctfassets.net/abyiu1tn7a0f/52noUce8Ex49e7QnPnlYb3/965bd6d4c967cdda1801cfe02e011302/epe-morganite-estate-eleko.jpg" alt="epe-morganite-estate-eleko">
<img src="//images.ctfassets.net/abyiu1tn7a0f/290XcGAoxHgChAVL06SFNL/5d946f191b69be0c0dd17b20e9b9cb0b/gracias-goldstone-sangotedo.jpg" alt="gracias-goldstone-sangotedo">
<img src="//images.ctfassets.net/abyiu1tn7a0f/7FZT4OvcswKNkuSXzRNHuO/6a5a84910c19c92dc9a99b95dc38ad25/peridot-heights-sangotedo-apartments-for-sale.jpg" alt="peridot-heights-sangotedo-apartments-for-sale">
<a href="https://ownahome.ng/real-estate-companies/gracias-global">Gracias Global&#39;s</a> major Real Estate investment strategy is buying and reselling land whilst providing infrastructure around the residential and commercial development. 
They can see as much as over 100% ROI because they actually buy this land for cheap from Omonile, by doing &#39;sponsorships deals&#39;.
Another company that uses this strategy of flipping is; <a href="https://ownahome.ng/real-estate-companies/landwey-investment-limited">Landwey Investment Limited </a> also located in Lagos as well. 
Word on the street was that the total payout for westwood estate by Landwey in Monastery road <a href="https://ownahome.ng/property/for-sale/lagos/sangotedo">Sangotedo</a>, Lagos; was NGN3billion.
<img src="//images.ctfassets.net/abyiu1tn7a0f/1jbOyZNXpFN682oyfHkQy6/eb8fcda7f757e9fe9274304ab05fb430/gate-house-apartment-landwey.jpg" alt="gate-house-apartment-landwey">
Nowadays though, <a href="https://ownahome.ng/real-estate-companies/landwey-investment-limited">Landwey</a> is majorly into property development and that is the next Real Estate Investment strategy we would talk about.
<h2>iii.) Property Development</h2>
Property development involves purchasing land, erecting buildings, developing infrastructure, and selling to the buyer either at carcass (lintel level), fully finished, with fittings, plumbings, and so on, or fully finished and furnished. 
This arguably can be the most profitable strategy and companies like <a href="https://ownahome.ng/real-estate-companies/cosgrove">Cosgrove</a> in Abuja with their flagship fully finished and furnished property in Wuye costing NGN500million. 
<img src="//images.ctfassets.net/abyiu1tn7a0f/2e9z0lohoM2kpGw1jKZvjt/5202724fafc76958ef4aebe05262fee2/for-sale-cosgrove-katampe-phase-1__2_.jpg" alt="for-sale-cosgrove-katampe-phase-1 (2)">
<img src="//images.ctfassets.net/abyiu1tn7a0f/nESFHFHSQI427vhPl9RYj/9e9344025c1ae8cbfca829f990e8434f/toilet.jpg" alt="toilet">
<img src="//images.ctfassets.net/abyiu1tn7a0f/1SU287NTw3O5t1QbaUgJN4/a3a36b7c1215b17e9daedd19885575e7/sitting-room.jpg" alt="sitting-room">
A company like <a href="https://ownahome.ng/real-estate-companies/landwey-investment-limited">Landwey</a> started with flipping lands but after they started their first developments in Abraham Adesanaya - the Urban Prime Estates - each unit reportedly cost between 14m-18m and they sold for as much NGN40million and above per unit. 
<img src="//images.ctfassets.net/abyiu1tn7a0f/4Bc5g6QC7QB6USRHGxU6wG/4662cbd4f10b74389ceef7ce3787d480/for-sale-urban-prime_estate-lavadia.jpg" alt="for-sale-urban-prime estate-lavadia">
<img src="//images.ctfassets.net/abyiu1tn7a0f/3ZOg2o8dH9vqeSgYQgvD78/5fd005f914e9d7c08659dc442b586a44/property-for-sale-urban-prime_estate-lavadia.jpg" alt="property-for-sale-urban-prime estate-lavadia">
After the success of the Urban Prime Estates - Landwey has never looked back and have majorly been into property development these last few years. 
They currently have a 100m 5 bedroom property in <a href="https://ownahome.ng/property/for-sale/lagos/abijo">Abijo</a>, Eko Ekete. How crazy? The more mind-blowing fact is that it is off-plan (not yet built).
<img src="//images.ctfassets.net/abyiu1tn7a0f/3WLE9yEpekxEy0mLtMxN3L/e7f772ed923ee5ec13419c32104c32f8/hockley-apartments-for-sale-beside-lekki-epe-expressway-abijo.jpg" alt="hockley-apartments-for-sale-beside-lekki-epe-expressway-abijo">
But property development is capital intensive and it requires alot to position for success. 
For example <a href="https://ownahome.ng/real-estate-companies/gracias-global">Gracias Global</a> as mentioned above, started years before <a href="https://ownahome.ng/real-estate-companies/landwey-investment-limited">Landwey</a> and although they have tried their hands on many development projects like the Goldstone, Peridot Heights all in <a href="https://ownahome.ng/property/for-sale/lagos/sangotedo">Sangotedo</a>, they haven’t been as successful as Landwey with development. 
<img src="//images.ctfassets.net/abyiu1tn7a0f/7FZT4OvcswKNkuSXzRNHuO/6a5a84910c19c92dc9a99b95dc38ad25/peridot-heights-sangotedo-apartments-for-sale.jpg" alt="peridot-heights-sangotedo-apartments-for-sale">
They seem to have realized their competitive advantage and stuck with flipping properties; selling land in only prime areas in <a href="https://ownahome.ng/property/for-sale/lagos">Lagos</a> and Ibadan.
There is another less talked about Real Estate Investment strategy: Real Estate Investment Trusts (REITS).
<h2>iv.) REITS:</h2>
Simply put, a <a href="https://www.mondaq.com/nigeria/fund-management-reits/1066920/overview-of-real-estate-investment-trust-scheme-in-nigeria">REIT</a> is a trust that pools funds from individual investors, acquires, operates and/or manages income-generating real estate. 
There are different types of REITS like Equity REITS, and Mortgage REITS. These REITS, listed in the <a href="https://ngxgroup.com/exchange/trade/equities/reits-and-cefs/">Nigerian Stock Exchange</a> distributes the income derived from their owned properties and investments as dividends to subscribers.
REITs are traded on the Nigerian Stock Exchange (NGX) just like stocks; you can buy or sell REITs through stockbrokers. 
<a href="https://www.researchgate.net/figure/Real-estate-companies-listed-on-the-Nigerian-Stock-Exchange_tbl1_338717339#:~:text=The%20study%20population%20are%20the,Development%20Company%20UPDC%20REITs/">There are currently only 3 registered REITS</a> recognized by the Securities and Exchange Commission namely; Union Homes, Skye Shelters and UPDC, a subsidiary of UACN. 
Nigeria by 2019 had the market cap of REITS at NGN32-72bn, compared with South Africa which has a total market cap of over $31.42 billion of 31 REITS. 
For even better context the combined market capitalization of the three REITs in Nigeria is US$131 Million while in the United States, the combined market capitalization of REITs is around US$898.41billion.
<a href="https://www.globallawexperts.com/NewsArticle.aspx?PID=2007">REITS have been very challenging to implement in Nigeria</a>, and even a major REIT - UPDC, a subsidiary of UACN posted a loss last year.
So you can see that whatever strategy from the above you choose namely;
i.) Rentals
ii.)Flipping Houses/Land
iii.)Property development
iv.) REITs,
You have to position yourself for success because it isn’t a walk in the park.
But how do you choose the right Real Estate Investment Strategy in Nigeria? How do you implement your strategy successfully?

Why You Should Invest in Lagos Free Trade Zone - Explained

Other blog posts

Beachfront and Waterfront Estates: Massive Opportunities

How To Fund Your Real Estate Investment Projects in Nigeria

How To Choose The Right Real Estate Investment Strategy

Join +5000 people on youtube