By DENNIS ISONG
A few years ago, Mr. Ranti bought a piece of land somewhere in Lagos. He didn’t buy it to develop it, rather, to resell it. The cost of that land then was 500 thousand naira. And he waited for a few years because he knew how land rapidly appreciates.
During these periods of waiting, the community in which the land was located kept developing. Each year, there’s a massive development going on. By the time Mr. Ranti was ready to resell it, people had to beg him to sell it to them for 2 million naira because he insisted on selling it for 3 million.
This is a very good thing with land flipping in Nigeria.
What then is Land Flipping? From Mr. Ranti’s story, we should already have an idea but I will still define it.
Land flipping is a type of real estate investment that involves buying lands at a low price and selling them at higher prices to make huge profits.
However, it is massively profitable when land buyers buy land in an area that’s rapidly growing. You can make up to 300% on your investment in a few months or in some cases a few years just the way Mr. Ranti made a lot of money from it.
WHY LAND FLIPPING IS HIGHLY PROFITABLE
- Land doesn’t depreciate by value
Unlike cryptocurrency or stocks which fluctuate, land rather appreciates. The value of land easily appreciates, though, it depends on the location.
For instance, people who had bought lands in Ibeju-Lekki years ago will surely be smiling at the bank anytime they decide to sell now. Land appreciation can increase by up to 100% in one year.
- It doesn’t take much to maintain.
All that may cost you to maintain land is so little compared to buildings. Buildings cost so much to maintain but if you have the money, then you would always find the value intact. You can leave land for a while without touching it for any reason while it keeps appreciating until you are ready to sell it. If you have low start-up capital, you can consider land flipping as a business. This guarantees you huge profits at the end of the day.
- You don’t have to be troubled over property management
Land Flipping cuts out unnecessary expenses that you can’t avoid when you have a structured property. Apart from this, a lot of stress is avoided such as dealing with tenants, government, delayed payment, etc. this is not to say property building doesn’t have its advantages, but you can’t compare the stress of property building with land. The former has more responsibilities tied to it.
- Land is easily sold
Unlike building property sale that takes a lot of energy in terms of putting up an attractive appearance before bringing it out for sale, land doesn’t need to go through that. It’s easier to find buyers for land without the help of a realtor. A lot of people are always on the lookout for who to buy land from which makes it convenient to sell. However, if you need to go the extra mile, you can make use of websites for the social media marketplace. I can assure you that you may not even go through half the stress before finding a buyer for it.
MAKING EASY MONEY FROM LAND FLIPPING
Why do you engage in the Land Flipping business? To make money. But you can’t make money if you are not tactical about it.
Land flipping works well in a location that has great potential. For example, places like Ibeju-Lekki.
These should be put into consideration if you want to make so much money from Land Flipping:
1.Do detailed research to know
fast-developing areas, already developed, or have a high potential of becoming a hot cake in the future.
If you can acquire land in a more developed area at a good price, go for it. It’s easier to flip more developed areas and get your money and profits in a couple of months. However, if you have the patience, buying land from developing areas isn’t a bad idea. You may just have to wait a couple of years for land appreciation and make a profit.
- Try to obtain complete land documents and ensure the seller is the owner under the law and traceable. Another thing is that don’t trust land with inconclusive titles. As a reseller, you won’t find it funny if issues concerning land titles come up.
- Don’t leave the land unattractive.
Prepare it in a way that would attract buyers. Do a mini advert talking about why the land is great for anyone interested in buying it. Do this on a billboard situated towards the land. Mark it for better identification and also, as a means of claiming ownership. Don’t do this alone, run an advert on social media concerning it and see how you would sell without hassles.
- Be business-oriented.
Look at the brighter side of it in terms of profit-making.
In conclusion, Land Flipping is a real estate business that has the capacity of bringing fortune if you know your way around it. Please, be more focused on location and bear in mind that this determines if you would make your money in a few months or years to come.