Flipping the Script

Making 30x from Investing in Nigerian Real Estate

Putting the Real in Real Estate

Did you know that the ‘Real’ in Real Estate is derived from a foreign word, "Realis" (Latin again), which helps describe something that you can see, touch, and feel? That is truly there—unlike yours.

 The English adopted this term, added "Estate" behind it, and used it to classify any part of the earth (large land) and the natural and man-made structures permanently attached to it. So, your house and the land it is upon is as much real estate as your neighbor’s fish pond.

Is Real Estate in Nigeria a Good Investment Opportunity?

Nope. Especially if you think you can just throw money at it like sending funds to a bank account, then relax over time and it gives you 100x in 1 year.

There are three cardinal mindsets you need to develop before you go into real estate in Nigeria:

1. Risk is directly proportional to reward. You have to actively work to check the risks and understand that the reward may decrease as you do this. If you meet established realtors who charge a premium, and you decide to go with backyard realtors who do not charge a premium and get your land grabbed off you, then real estate is not for you. You will lose.

2. It is the most illiquid instrument. You cannot use it to pay hospital bills within 48 hours when you need to. And those bills better be the excesses insurance cannot cover, not the whole bill, because why don’t you have health insurance? The value of your property, even if used as collateral, will significantly diminish. So unless it is a cash-flow property, real estate investment operates close to figures on your net worth sheet that you cannot spend.

3. It truly is a long-term investment. There will be 2x to 10x investments in 2 to 3 years. But unless you are buying to satisfy your primal urge to own a piece of land on earth, you better be prepared to wait for as long as 10 years to see expansive growth. If you’re a flipper, read number 1 again.

What is TIC doing in Real Estate?

My first real estate property was in Abuja, Nigeria, and I made 3x in the first year. Even though it’s been two months since I decided to sell, I haven’t used my profits to buy three new properties or even sandals. 

Read the second sentence again to understand this.

Real Estate money comes after liquidating it.

Yes, it is a good investment subject to the cardinal mindsets. Reach out to a real estate professional before purchasing real estate in Nigeria.