4 Reasons I Love High End Real Estate

My market is Southern California. In my opinion, home of the most beautiful real estate in the country!  But that's just my opinion.  There is fantastic high end real estate nationwide. There are fortunes to be made in these markets if you are properly positioned, but you must know what you are doing.  It's not as easy as it looks on Bravo's Million Dollar Listing. Having said that, I have always lived by the maxim, "Go big or go home."  Working with one moderate or middle income property at a time never interested me that much; I'd much rather find a way to work the big deals in the big markets.

(Aside From the Money) Here Are 4 Reasons I Love High End Real Estate

Less Competition

I do not mean from a financial standpoint.  There are private investors and investment groups with very deep pockets who are players in the high end market.  But there are simply fewer of them.  Most investors are going to play in the moderate and middle income range which is 200-600k in my market because there is less risk, more buyers, or they are using their own capital and don't have the resources to do bigger deals.  I have also found many people fear breaking out of their comfort zones or deviating from what "most people" are doing.  This means fewer players and therefore a smaller community which is great for finding deals. 

Relationships Are The Name Of The Game

This is true of any niche in real estate but is of paramount importance and suits me just fine.  I am a big believer in doing business through your network.  When you are looking for Contractors, Agents, Lenders, Equity Partners, and most importantly, Deals, you are going to have the best results with good old fashioned word of mouth.  As in all healthy markets when a good deal goes on the MLS it usually goes fast so the name of the game is relationships.  The more people bringing you off market deals or pocket listings, the better off you'll be.  I know cold calling, direct mail, and bandit signs work for many investors but they are a turn off in this market.  I don't think the ROI on any of them justifies the time and money put in.

'Somewhat' Isolated From Market Downturns

I didn't say from a true recession, I said a market downturn.  It's true that there are fewer buyers in high end markets because very few can afford real estate at that price point.  However, these buyers are usually least affected by swings in the economy.  They have built up so much wealth and have been smart about how they've positioned themselves.  Provided the area you're building in is desirable and doesn't have too much inventory on the market, you should be in good shape if the market goes through a rough spot.

Work With the Best People and Best Properties

Realtors, Builders, and Architects don't get to work in these markets or on these projects unless they are the best of the best.  They have spent years building a strong reputation. You can immediately tell the difference when you're working with the best or just another guy.  In most cases they are a pleasure and a lot of fun to work with.  But the best part for me is the property you're working on, featuring the most spectacular views, pristine real estate, and luxurious finishes.  You are building someone's dream home and I think that's a pretty cool way to spend your time.