Home > Real Estate Investment > How to Make Money in Real Estate: 7 Proven Strategies for Beginners (2026)

Real estate is one of the most effective ways to build wealth in Nigeria. And it’s not just for people with millions lying around.

So, whether you’re earning big or small, this guide is for you. You’ll learn:

• How to make money in real estate

• How each strategy works (with examples)

• And factors to check before you invest.

How to make money from investing in real estate

Below are the main strategies to make money from property in Nigeria:

1. Buying land

2. Renting out property

3. Developing and flipping

4. Co-ownership & cooperative buys

5. Land banking

6. Short-term rentals/serviced apartments

7. Land flipping & quick resale.

1. Buying land (holding for capital appreciation)

This is when you buy a plot of land today and sell it in the future at a higher price. Buying land is the most common way to earn money from real estate in Nigeria.

Why buying land works

• Land is scarce.

• The demand for land is high because more people are moving to towns, or new markets, schools, and road projects are popping up, so land prices tend to go up.

• Inflation decreases the value of cash, so owning an asset (such as land) that appreciates in value protects your money.

Example:

Imagine you buy a plot for N2,000,000 with a N500,000 deposit and pay the balance over 6 months (via a payment plan). Then two years later, the same plot sells for N3,000,000.

This means you’ll make N1,000,000 (50%) before factoring in the selling costs.

That’s simple capital gain.

Checks before you buy

• Is there a government project, new road, market, or factory nearby?

• Does the developer have a verifiable title and survey?

• Ask for a Google Maps pin and a survey plan.

See: How to buy land the safe way.

2. Renting out property (steady cashflow)

This is when you buy a building (house, flat, shop), rent it out, and start collecting monthly income from it.

Why renting out property works

• Rental gives a predictable cash flow (if you manage occupancy well)

• You retain capital appreciation on the asset.

Example:

Suppose you buy a one-bedroom flat for N15,000,000 and rent it for N600,000/year (N50,000/month). Your gross rental yield will be 600,000 ÷ 15,000,000 × 100 = 4% a year.

Now, this 4% gross rental yield is just the initial return on the capital solely from rent (before accounting for any operating expenses, taxes, or mortgage payments).

The true return on investment (ROI) often significantly increases over time when you add two critical factors: a gradual price rise (capital appreciation) and possible yearly rent increases (rental growth).

This makes the entire investment more appealing than just the initial rental return.

Checks before you buy

• Rental yields in Nigeria vary by city and area.

• Factor in vacancy periods, repairs, agent fees, and property management.

If you don’t want to manage tenants, hire a trusted estate manager.

See: Beginner’s guide to renting out property in Nigeria.

3. Developing and flipping (building and selling)

This is when you buy a plot, build a house or shop on it, and then sell it for profit. It has a higher risk but also a higher reward.

Why developing and flipping work

This strategy works in developing neighbourhoods or locations:

• If buyers demand ready-to-move-in houses

• Or if construction costs are low.

Example:

You buy land for N4M, spend N6M to build a modest duplex. The total cost is N10M. If the completed house sells for N14M, your gross profit is N4M.

Property development involves several steps, and determining whether you'll actually make money (profitability) is super important. A key measure of success is Gross Profit (the final sale price minus the total project cost).

In the above example, the Gross Profit is N4,000,000 (four million naira). This profit figure shows a good return on the total investment before even counting the developer's overhead and sales expenses (which you'd subtract to get the Net Profit).

Checks before you develop and flip

• Understand what potential buyers want in that location.

• Manage your building costs effectively.

4. Co-ownership & cooperative buys (pooling power)

This is when you partner with your spouse, family, friends, or a cooperative to buy land or buildings together.

Why co-ownership works

• You split costs.

• You’ll spend less money from your own pocket.

• You can get bulk discounts from the developers.

Example:

Four colleagues put N750,000 each to buy a plot for N3,000,000. They finish payments faster and share the gain or divide the land.

In this joint investment, the combined contributions of the four partners immediately met the full purchase price of N3,000,000.

So, depending on the partners' plans and the current market conditions, this investment should result in one of two outcomes:

I. Shared gain (sale)

If the partners choose to hold and subsequently sell the land after a period of appreciation, the resulting profit (the sale price minus the original cost) will be divided equally among the four investors.

This outcome capitalises on the speculative or potential value of the land.

II. Physical division (shared ownership)

Alternatively, the partners may opt to retain the land for personal or developmental use. In this case, the plot of land will be physically surveyed and partitioned into four equal sections. This grants each partner outright ownership of a quarter share of the property.

This option is great because each investor gets a real, physical asset.

Checks before you co-own

Always sign an MOU (memorandum of understanding). The MOU should state who gets what, exit rules, and what happens if one partner dies.

This prevents fights or stories that touch later.

Subscribe to our email list to get a template of a simple Co-Ownership MOU (Memorandum of Understanding).

5. Land banking (reserve with a small token)

This is when you reserve a plot of land with a small token (or lock fee) while you raise the balance.

Why land locking works

Developers sometimes let you put down a small payment to hold a plot temporarily. This keeps the price locked in while you save up the rest.

Example:

You want to buy a plot of land for N2,000,000 with an initial deposit of N500,000, but you don’t have the full amount. So, you pay an initial, non-refundable reservation fee of N200,000 to lock the plot. Later, you get an additional N300,000 for the initial deposit. And then, you figure out a payment plan for the balance of N1,500,000.

When you formally reserve and lock down the plot of land, the plot is immediately taken off the market. This prevents its sale to any other interested party.

Following the reservation, you can then:

1. Save N300,000 to finalise the remaining initial payment. Calculation: N200,000 (reservation) + N300,000 (saved amount) = N500,000 (total initial deposit or 25% of the total plot price).

2. Figure out a flexible payment plan for the remaining balance of N1,500,000. This plan helps you manage the outstanding amount through scheduled instalments over an agreed-upon timeline, making the total purchase price of N2,000,000 affordable.

Land locking helps you immediately secure your investment without paying for it at once.

Caution before land locking

Get a written temporary allocation letter and a clear timeline. If you don’t do this, the token can’t be protected.

See: How to use payment plans and land locks.

6. Short-term rentals/serviced apartments (where viable)

This is when you rent out your furnished property for days or weeks to people. It’s often facilitated through platforms like Airbnb.

Why short-term rentals work

In business or tourist locations, short-term rentals can bring in more cash for you than traditional long-term rentals.

Example:

If you rent out your furnished room at N25,000/night, and people occupy the room 10 nights/month, you’ll make a gross monthly revenue of N250,000.

This amount (N250,000), even before deducting operational costs (e.g., utility bills, cleaning charges, and platform fees), is often higher than the income from just getting a regular, long-term tenant.

So, this huge difference in what you could make shows why short-term rentals are so attractive, especially in high-demand or tourism-heavy locations.

Caution before investing in short-term rentals

• For a high-quality guest experience, ensure reliable electricity supply, water supply, and security.

• Ensure you can face the difficulties in recruiting and keeping dependable staff for management and maintenance services.

• Be mindful of your pricing strategy and deliver superior service, as competition can be fierce in prime locations.

See: Short-term vs long-term rentals.

7. Land flipping & quick resale

This is when you quickly buy and resell undervalued plots of land for profit (usually before they officially launch).

The heart of successful land flipping is when you can buy the land way below its current or near-future market value.

Why land flipping and quick reselling work

This strategy works because you can target:

• People who need to quickly sell off their land because they need cash, are relocating, or getting divorced. They usually just want a fast sale, even if it means not getting the absolute highest price.

• Properties that haven't been widely advertised, so you can buy them before anyone else even knows about the opportunity.

• Plots of land that appear unattractive or challenging to the average buyer but have hidden potential (e.g., if they’re located near future development projects).

Example:

You buy land early in a new estate at promo price of N6M. Months later, the price rises to N8.5M, and then you flip or resell the land to make a profit of N2.5M.

This is an example of real estate appreciation driven by early-stage investment.

Here’s how it works:

When developers newly launch an estate, they often offer a “promo price” to motivate early buyers and quickly generate capital for development.

So, if you buy plots or units early at a highly competitive promotional price of N6,000,000 (six million naira), you take the risk of buying into a developing location. But that risk comes with the highest potential for profit (capital gains) down the line.

As the estate develops (with infrastructure, increased occupancy, and overall market awareness), the perceived value and the market price of the properties always rise. And within a matter of months, the price for similar plots of land within the same estate escalates significantly to N8,500,000 (eight million, five hundred thousand naira).

This substantial price increase creates an immediate and profitable opportunity for you (the early buyer). By deciding to “flip” (resell) your properties shortly after the price increase, you capitalise on the market's growth and make a considerable profit of N2,500,000 (two million, five hundred thousand naira) per unit (N8.5M - N6M).

This strategy shows the financial benefit of being among the first to commit capital to a promising, newly launched real estate development.

Checks before you land-flip and quickly re-sell

To mitigate the dangers of this real estate investment strategy and ensure a profitable venture,

• Verify the land's documentation and title legality.

• Confirm the land's government designation and zoning.

• Evaluate the accessibility, infrastructure, and market demand.

Carefully doing these easy checks boosts your chances for a quick, successful, and profitable resale.

Subscribe to our email newsletter and receive a one-page Due Diligence checklist that you can download quickly.

3 practical tips to make money in real estate

1. Don’t wait for a perfect time to invest in real estate and start making money. Use a strategy: payment plans, co-ownership or land-lock can get you in.

2. Avoid borrowing to buy pure land unless you’re sure of the exit. Land doesn’t pay a monthly income by itself. Use loans for income-generating assets.

3. Start small and scale by buying a plot in a realistic location or renting out a room first. Then you can grow.

Bottom line

Real estate in Nigeria isn’t just for the rich. It’s for anyone ready to start small, plan smart, and act early. Whether you buy land, rent out property, or join a cooperative, consistency and due diligence matter most.

Start today; time and inflation reward those who invest, not those who wait.

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