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Land flipping is probably the easiest and least expensive way to get involved in the real estate business. It involves buying land at a relatively low price and selling it for a profit. You just need to find a buyer that’s willing to pay a reasonable price for it.
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Fortunately, there are many locations with the characteristics that allow you to make a substantial profit on land flipping. There’s usually a lot of demand for land in these places, so getting a buyer won’t be difficult.

Why You Should Consider the Land Flipping Business

Here’s why you should consider venturing into the land flipping business.
  1. It requires far less investment than other real estate businesses.

NB: Actual costs will vary depending on the location. It’ll cost you less to buy land on the outskirts of Lagos than it would if you were purchasing a similar kind of property in the heart of the city.

  1. There’s no maintenance to be carried out (unlike if you were buying developed property).
  2. Plenty of room for new entrants to get involved. Competition is minimal, and opportunities abound.
  3. You can start small and expand the number of properties you hold as you go along.

Steps to Take in the Land Flipping Process

Find a Suitable Location

There’s no shortage of land in Nigeria, but not all of them will work for your purposes. When prospecting for land, look for one that’s located close to or within a developing area. The outskirts of major cities typically offer the best spots. For instance, in Lagos, the Ibeju-Lekki axis currently attracts a lot of investment from real estate investors. Areas like this are at the edge of existing urban districts and are the next frontiers for the expanding cities close to them. As the demand for land in those axes begins to rise, their valuation will climb as well. This offers the landowners an opportunity to sell their holdings for a substantial profit. If you’re not very savvy about these things, you can get in touch with a real estate agent who’s knowledgeable about the area you’re interested in. They’ll help you make the right investment decision.

Prospect for Property

Next, you’ll want to narrow your search down to the particular property you would like to purchase. Again, your real estate agent can help with this.
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Be sure that the land you choose is accessible; this will partly determine the value of the property. If you want to avoid spending a lot on making improvements to the land, ensure that it’s in decent enough shape. That is, it is level ground, and isn’t swampy or heavily forested. It’s up to you to decide what kind of features you can tolerate in a spot you want to buy.

Make the Purchase

Don’t do this until you have verified that the seller is genuine. You can authenticate the seller and their land by conducting checks at the state land registry. Ensure that the seller has the right documents related to the land, such as the Certificate of Occupancy (C of O) or Governor’s Consent. You may hire a lawyer to help you with this. After determining the genuineness of the seller and their documents, you can reach a deal with them for the land. Knowledge of the market value of similar property in the vicinity will enable you to negotiate for a fair price. An independent valuation of the land may also be useful. When you have agreed on a deal with the landowner, you will receive the title documents for the land from them.

Make Improvements to the Land

This could mean removing the bushes on the land, fencing it, or even tarring the road leading to the property. Electricity and water can also be provided. The extent of improvements you make to the land should be determined by your budget, and the value you expect to recover from selling the property. These enhancements will make the spot more attractive to potential buyers, and enable you to raise your selling price.

Sell for a Profit

Work with a real estate agent to put your land up for sale. When setting a price for the property, make sure to factor in the cost of making improvements to it, and a decent profit margin. Advertise the land on multiple channels, including property listing websites and social media. Your posts should be accompanied by clear pictures and/or videos of the land. Get the word out as much as you can, to increase your chances of attracting a suitable buyer.   Featured Image Source: Dreamstime
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This article was first published on 31st December 2020

ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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