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!
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’s development at Oworonshoki.
Maybe not so popular with individuals but lots of Real estate developers and companies take advantage of this method. It’s all about OPM (other people’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.
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.
Ancestral land owners (also called omo ni ‘ile) with a bulk amount of land usually don’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.
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.
