Real Estate Wealth Today

One of the things you want to remember as a real estate investor is the importance of establishing a expert niche. Having a expert status makes you stand out in the crowd as an expert in a specific area of real estate investment and will help you to gain more potential private lenders in your area of specialization.

Advantages of Creating a Niche

• Make Your Services Stand Out: Specializing in a real estate investment niche allows you to market your services as unique and distinguishes you from other run-of-the-mill real estate investors who tend to dabble in everything.
• Become the Expert: Having a specific niche in real estate investment allows you to focus on one or two areas and establish yourself as an expert. If you tend to dabble in everything you never really become an expert at anything. It is kind of like the old saying "jack of all trades and master of none." With a niche, people will begin to see you as the "go to" person for your particular specialization in real estate investment.
• Target Your Audience: Specializing in a particular niche allows you to focus on a targeted audience. For instance, if you specialize in housing for the elderly, you will most likely be referred to repeatedly as the expert in investing in housing for the elderly.

It also allows you to focus your marketing plan for that particular targeted audience. Once you become known for helping people in this specific area, you will be more likely to build steady clientele for this particular niche in real estate investment.

How to Create a Real Estate Investment Program

• Self-Assessment: You have to do some self-assessment to find out where your interests are with regard to real estate investment. Perhaps you are interested in helping others find low income housing or maybe you want to deal with vacation second homes. Whatever it is, make sure you like it because you will be dealing with it on a daily basis once your business begins to grow.
• Who You Enjoy Working With: Figure out who you enjoy working with and then discover what types of properties interest this sector of clientele. For instance, if you like working with the elderly, then find out what types of properties are involved with the elderly.
• Geographical Area: Consider the geographic location you wish to work with and the types of properties in that location that interest you. Again, the properties should correlate with the clientele that you are interested in dealing with.
• Decide on Property Type: Find out if you are interested in working with rentals, one-family homes, commercial properties, or something else. Choose one property type and specialize in it. The property type that you work with is one component of many in developing a niche in real estate investment.

Keep in mind that by developing a real estate investment program you are not limiting yourself. Some investors are under this impression and then make the mistake of getting involved in too much with no focus. In reality a program opens up a world of possibilities and establishes you as an expert with a particular focus in the real estate investment market.

If you are starting out in real estate investment your initial challenge is gaining credibility with potential private lenders. The other challenge is how and where to find private lenders and how to get their undivided attention, especially if you are new to real estate investment.

Who Are Potential Private Lenders?

If you look around you, potential private lenders are everywhere. They could be your family, friends, and relatives or they could include business associates, employees, contractors, vendors, or anyone you do business with.

Private lenders could potentially be people that you would never suspect would be willing and able to invest in your real estate deal. Sometimes they are simply people from all walks of life, who are financially able to invest and are looking to get a higher rate of return on their investment. They do not even necessarily have to specialize as private lenders.

How to Connect with Private Lenders

• Networking Events: Attend seminars, conventions, and professional networking group gatherings. Develop a great 60-second elevator speech and talk to everyone at these events. Ask them questions about themselves to get to know them. If they do not seem to be interested, ask them if they know of anyone who is interested and give them your business card.
• Real Estate Entrepreneurs and Landlords: Try obtaining a list of real estate entrepreneurs, investors, and landlords and start networking with them. Perhaps they can also be part of your two-step direct response marketing plan. Send them a postcard or letter offering some free advice or information and encourage them to contact you. If possible call them up and speak to them directly.
• Church Contacts and Neighbors: Sometimes the people you would least likely expect to be interested in your real estate deal are the people you see in your everyday life. This includes people you see at church, your neighbors, and friends of neighbors.

Many of these people have IRAs and other investments that are currently suffering during the economic downturn. Most likely these people would welcome a higher rate of return on investment and especially with someone they know.

• Retirees: This is a great area to investigate because many retirees are looking to make more money in their retirement, especially during the current economic crisis. Many of the retirement plans for these people have suffered due to the current economic conditions.
• Casual Contacts: Make an effort to talk to contacts while conducting your business or running weekend errands, going to the store, or waiting in line at the coffee shop. Have your elevator speech handy and casually strike up a conversation.

A Few Things to Remember

Once you have started connecting with potential private lenders here are a few tips to remember.

• Show Concern for the Lender: When striking up a conversation, show concern for the person and tune in to their needs.
• Be Concise and Stay on Topic: When talking about yourself be concise when explaining what you do and stay on the topic. Do not bore the other person with details about yourself they could care less about. Offer enough information that shows your expertise and show that you may have a solution to the other person's problem.
• Keep a List: Maintain a list of everyone that contacts you for further information. In the beginning it will start with only a handful but, over time if you are consistent in trying to connect with private lenders, that list will grow and you will be able to cultivate it over and over again.