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How to Invest in Real Estate with Little Money in Nigeria

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How To Invest in Real Estate with Little Money in Nigeria

The real estate field is on its top, and people earn millions of naira in this business. It is working as a real money-spinner in the market with different strategies. Like other successful businesses, if you want to make a continuous and robust income, you must choose to invest in real estate. Besides many positive points for investing in the real estate business, money is required. However, when you want to invest in real estate with little money in Nigeria, you will find multiple financial opportunities to make a smooth and steady income. On the other hand, some problems can seriously limit your success in this business. To minimize the risks, you have to come up with proper research. In actual meaning, the real estate investment is not just an ownership purchase but also includes the management, rental, and selling type of real estate business. It turns into a blessing where you require a limited amount to invest if you are well-aware of it. The problem is that the new investor doesn’t know how to get an advantage from real estate investment with little money in Nigeria.


Real Estate Investment

The real estate cash flow can make you the most successful person if you invest in the right way. Moreover, an experienced and trustable real estate agency would be of great help.

Techniques to Invest in Real Estate with Little Money in Nigeria

Here are some ways to invest in real estate with little money in Nigeria:

1. Lease Option

It is an exciting way where you don’t need to purchase a property. Instead of buying a property, you can go for a rental option and make a smooth income in Nigeria. This rental technique to also called the master lease option.

lease option invest in real estate


It is an agreement-based option in which you will pay the monthly rent in a premium installment. However, the extra rental fee will be counted as the purchasing price.


The master lease option will assist you in getting profit by investing in real estate with little money in Nigeria. Suppose you want to take a rental charge on a house consisting of 4 bedroom in Nigeria. Lets say the house rent is 2 million naira for the home, and with the owner’s permission, you invite your three friends to live in the remaining three rooms. Each of your friends is ready to pay 600,000 naira for their rooms when you spend 2 million naira for the rent so you gain 400,000 naira. You can then start using these funds to invest in less expensive land in developing areas like Epe or you can save up these funds and use to invest in the location you want. This is one way to start making money to invest in real estate.

2. Money Lending Option

Real estate investment is a fast-growing business that can make a perfect steady income. If you are trying to invest in real estate with Little Money in Nigeria, there is another option of the money lending option. You can adopt a funding option instead of the bank because the bank loan procedure requires a lot of documentation.

money lending invest in real estate

On the other hand, if you go for a funding option from groups or private individuals, it is a relatively straightforward investment with lesser documentation. It is also called the challenging money lending procedure. However, the interest charge for hard money lending is higher due to its alternation with the bank option.

3. Equity Partnership option

Equity partnership is a standard and best option if the property rate is out of the range. If you don’t know how to invest correctly, you must find the best-trusted partner for real estate investment. With the help of a trustable realtor, you can get different partnership options.

equity partnership invest in real estate

However, the dependence is upon the partners in which they are comfortable signing the contract.

4. House Trading Method for Real Estate Investment

House trading is another best way to invest in real estate. This option is more beneficial because you can start investing here with little or zero money. Isn’t it surprising? Let me explain it in detail.

Suppose you have an old house that is wider in the area than your family members. In this situation, you can adjust them to a relatively small home and trade your old house for a new place. But what’s the benefit?

Investment in House Trading


When you trade your older large house with a smaller new home, you will get a side amount as a bonus. This side amount can be an investment in your real estate business.

5. The Real Estate Crowd-funding Option

Real estate crowdfunding is an absolute way to real estate investment with little money in Nigeria. This option is similar to a bank saving account, but it requires some patience for the profit or income.

Here, you have to give a share to a real estate company that will take your share as an investment. Some small steps will help you reach your destination but with the proper consultation of a real estate agency.

Crowd Funding Real Estate Investment


You are providing the real estate company with an amount for a plot investment. After selling the property, the company gets a profit of 10% on the field. If your share is 50 percent, you will get 50 percent profit too from that 10%. If your share is 25%, you will get that same percentage from the profit. So, by being patient, real estate crowdfunding is one good option to make profit from.

6. The Land-banking Real Estate Investment

Land-banking Investment is a way in which people invest different amount of money for a particular tenure with a real estate company and these funds are used in the acquisition of large expanse of land and in the development of real estate building projects and the investors get. At the end of the tenure, the investor gets his capital and agreed interest rate.


Let’s say Mr. A invests one hundred thousand naira in Land-banking investment with a reputable real estate company for a particular duration (e.g. 12 months) and the interest rate for 12 months is about 30%. This means that by the end of 12 months, the investor will get his capital and 30% interest and these funds would have be used for real estate projects to generate good return on investment. Please note that after the investor invests a particular amount in Land-banking, he will be given documents such as Deed of agreement, Investment certificate, Post-dated cheque (which contains the capital and interest and it can be withdrawn when the tenure of the investment ends). This is one way in which individuals or groups of individuals (e.g. cooperative societies) invest in real estate to get good return on investment.



Investing your money is an uphill task, especially when you don’t have much. Lack of knowledge may also get you entangled in various property issues. Suppose you need to invest in real estate; you must get all the information about every aspect. You have to research appropriately, observe the pros and cons of everything, and then decide which option you will go for.

But if you are still facing challenges investing in real estate with little money in Nigeria, you can consult a Nigerian real estate expert. The reason is that the real estate experts who have been into this business and in the real estate market are most familiar with many the factors that can limit your success in real estate investment in Nigeria. Click to have a free real estate consultation session with one of our highly dedicated real estate experts.

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