Basic Real Estate Strategies
for Beginners in Nigeria

Cash Flow Strategy

This strategy is ideal for beginners in rental real estate investments, who are looking for a constant income apart from their main income. There are two ways to this Strategy:

Commercial Real Estate Strategy

Commercial real estate refers to real estate investments that are typically non-residential. Hotels, warehouses, offices, and retail stores are all examples of commercial real estate investments. These types of investments are typically considered active as well and involve the investor owning and renting out a space to a business that will use it. Just like residential real estate, you can earn extra cash flow by collecting rent or selling the property as value appreciates.

Buy and Hold Strategy

This strategy entails buying a real estate property and holding on to it in the long term until natural appreciation has pushed its value sufficiently to make sense to sell it. The key to success with this real estate strategy is to buy a property below market value and/or in a cold (buyer’s) market which is expected to heat up in the coming years. This will help accelerate appreciation and allow you to make money sooner rather than later. Buy and hold real estate is a way to make money in the long term and not in the short run but you can combine buy and hold with renting out on a short or long-term basis for maximum return.

Flipping Strategy

Flipping and microflipping Strategy: Flipping a property is one of the most active investments you can take on. When you flip a property, you purchase a fixer-upper in desperate need of repairs, then make those fixes and sell it. This tends to be risky because you must invest a lot of your own money into the property and there’s a chance you might find additional problems and lose money rather than make a profit. If all goes well, however, you stand to make a hefty profit upon sale.

These are the basic strategies for beginner investors to get started with real estate investing, there are other strategies out but this article is to help avoid overwhelming yourself by narrowing down these strategies, so you can find a strategy that fits, adopt it, and get started.