Some people have parents, uncles and aunts who acquired land in developing areas many years ago. These places that were called developing areas back then have become highbrow areas today. Lands that they bought for less than N1m are now worth many times more. These people have become multi-millionaires by reason of the value of their properties but they don’t have millions in their bank account. They don’t have money to develop the land. What most of these people don’t know is that they can make money from their land and have millions in their bank account by using other people’s money to develop the land. All they have to do is enter a Joint Venture (JV) agreement with a developer.
A real estate joint venture is basically an agreement between 2 or more people to develop a real estate project and share profits. So, for example, your uncle owns a 1200 square meters parcel of land at Oniru, Lekki. He can enter into a joint venture agreement with a developer whereby the developer builds a block of 2 and 3 bedroom luxury apartments on the land. This means that the developer uses the money which he should have used to buy the land, to build the block of flats thereby utilizing his resources maximally. After completion of the project, they will share the flats or share the proceeds from the sale of the flats.
It’s a win-win solution.
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