(i) Agriculture (ii) Construction & Real Estate (iii) IT
In the post, I laid my emphasis on real estate and how we can take advantage of the wideness of the industry as investors, professionals and entrepreneurs.
I discussed that, investing in the industry to make significant economic impact, will require huge capital investment. This is when you want to become big player in the industry. However, I asserted some practicable methods of penetrating the industry from taking chances to becoming stakeholder.
I concluded that, construction and development segment of real estate industry is apparently the largest and most viable sector of the industry. You can read the post here: Why not venture in the growing industries of the economy?
Today, I will be discussing how you can take advantage of the construction and development sector of the real estate industry as a professional, investor, entrepreneur or businessman.
Like I said in my previous post, construction and development of properties require a lot of factors: materials (Land, supplies etc); manpower, skills,
expertise and technical know-how (Labour); and obviously funding (Capital). It is a process which involves different professionals and several markets. Consequently, industry opportunities are open to a lot of individuals who have interest in the industry.
From the conception of idea, Building Architects and Designers ( Interior Architect or Interior Designers) are involved in the construction and development of the project. These professionals are the ones who plan, draw and model the structure, surrounding, ergonomics and aesthetics of the project. These professionals are already decision makers of the industry, owing to their influence and skills. They may take their stake in the industry further, by investing part or whole of the fee they earn from projects.
In Nigeria, Architects charge at fixed rate, while some charge on percentage range of 5% to 20% of total cost of the project. On the other hand, Interior Architects (Designers) charge fee depending on the kind of project, whether it is a new project or a remodelling project. They also charge in several ways, sometimes fixed, sometimes per size/area measurement of project, and sometimes percentage of total cost of the project, which varies from 15% to 20%.
Architects and Designers, from their knowledge and experience in the industry, can design properties that are relatively compatible with the fee they earn from respective projects. They may choose to invest individually by planning and designing, and then make the project development possible by procuring the services of other professionals at fairly charged fees.
Another workable option is pulling resources together as a group of professionals to invest in giant construction projects. These two alternatives I proposed only need your professional knowledge, technical skills and experience.
Engineers and Builders are more visible and are involved in the practical execution of real estate projects. They bring in more hands and markets to
the real estate development projects. In most cases, they bring in Contractors, Suppliers, Consultants, Artisans etc. The nature of their responsibilities in project development makes them middlemen between investors and other professionals involved in the real estate industry. Therefore, this position gives them some sort of authority when negotiating deals.
Engineers and Builders can recommend most brilliant professionals in the industry, they know where to source for the best quality materials, they know the most reliable suppliers in the industry. They can use all these features to their advantage, to invest in projects of their own in the real estate industry.
Suppliers make building materials available for projects. Real Estate projects cannot even be started without materials. The simple analogy we can use here is that; they have raw materials, they only need experts (professionals) and other resources (capital) to make the production (real estate) a reality.
Meanwhile, the availability of these materials maybe used to get good deals for other resources needed to develop the project. Capital could be sourced from investment banks, based on the value of the materials such supplier possess. The relationship built over the time with professionals in the industry will be helpful in hiring their services on considerable fee charges.
Since suppliers are the provider of resources, the determinant of their possible investment in the industry is their reputation, zeal and ability to take risk.
Estate Agents are the administrators and marketers of real estate. They are integral part of the industry. Agents are involved in the buying, selling, leasing/renting and management of properties. Although it is often said that “he who plays the piper dictates the tune”, but in real estate industry, it is not
always the case. In most times, investors dance to the tune of Estate Agents.
Agents have the current real estate market information, they know the worth and value of areas; and they can predict the feasibility of investing in
one area or another. Agents often get good deals of sales or purchase offer either directly from investors or through professional colleagues.
Estate Agent who would like to extend his market share of the real estate industry may also invest directly, either by taking up a good deal on property sales or constructing a new property for commercial purposes. In this subject, I cannot take Agents to school, but I can inspire someone who is already on the verge of pursuing a career in the field.
I would conclude by saying, there are several methods of investing in real estate industry. The ones I explained are just some of the numerous ways of investing in the industry. I would be glad if you could also share any other ideas you may think of. I learn from people and experience.
Criticism, advice, tips and other contributions from readers are what make this platform grows. Feel free to drop your view on the comment box below.
He is an entrepreneur, writer, barber and interior designer. Abiodun discusses and writes about entrepreneurship, leadership, business and economy.
He has interest in luxury, art, fashion, travel and technology.
Abiodun is passionate about sport, particularly football (soccer) and boxing.