Make N21.6 Million Through Real Estate Project Sponsorship
Did you know you can make money in Nigerian real estate without being involved in the daily grind? You don’t need to be the one managing properties, building estates, or handling all the day-to-day tasks. Instead, you can earn through Real Estate Joint Ventures (JVs) or Sponsorships-a smart way to grow your wealth while someone else does the heavy lifting.
Let’s break it down:
Land Banking Joint Venture/Sponsorship
This is when you sponsor the acquisition of large parcels of land for investment purposes-what we call land banking. You don’t have to buy the land yourself or worry about developing it. There are two ways you can make money from this:
1. Bulk Purchase:
In this model, you sponsor the purchase of acres of land in an estate at a low price. Here's how it works:
You invest in a bulk land deal at a very affordable price.
You get access to prime locations within the estate.
The value of the land appreciates once the estate is launched, giving you a great return on investment!
Example:
If you invest N10 million, within just 1-2 months, you could make up to N3 million in profit!
2. Joint Venture (JV) Sponsorship:
This is where you sponsor the acquisition of large land areas for estate development. In this case, you're partnering with a developer who handles the actual building and sale of the properties. You invest upfront, and the developer does all the work. Here's the math:
Estate size: 30 acres
Developer sells: 6 plots per acre
Total plots = 30 acres × 6 plots = 180 plots.
Each plot cost for N500,000.
Total sale value: 180 plots × N500,000 = N90 million.
Now, let’s see how sponsorship works:
You sponsor 15 acres of the land.
For 15 acres, that’s 15 × 6 plots = 90 plots.
Your share of the total cost : 90 plots × N500,000 = N45 million.
Profit Breakdown:
After the land is sold, the plots appreciate in value. Here's how the profits look:
New price per plot after development: N800,000.
Total from 90 plots: 90 plots × N800,000 = N72 million.
Now, let’s calculate the split between the developer and you, the sponsor:
ÀDeveloper-Sponsor split: 20% for the developer, 80% for the sponsor. (This sharing ratio varies with projects)
Sponsor’s share of the profit: 80% of N27 million = N21.6 million.
So, after you sponsor the land acquisition with your N45 million investment, your profit would be: N21.6 Million
You can make great returns without managing day-to-day operations.
Interested in sponsoring any of our upcoming projects in Ibeju-Lekki, Epe, Ibadan, Abeokuta. Let’s chat!
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