Real Estate Agent · Atlanta, GA · Member since 2018 · 14 posts · 6 votes
I’m currently reading “How to Invest in Real Estate” and just finished Chapter 4 & 5 which explain the different niches and strategies you can use in investing. There are SO MANY! The one main piece of advice that I’ve gotten from the chapters is to pick a niche and master it then move to another. How did you choose a niche when first starting out?
I found one that made the most sense to me, had the least amount of risk, unlimited potential deals, easier of the bunch to find, and I am able to duplicate and repeat the process when I am in a position with money to make more money. Sometimes people complicate things or want to invest in certain things so it can sound "Sexy" at a cocktail party. Me, I like simple, easy, and something that is consistent and duplicatable.
@Keesha Duminie I decide to use my 401k to buy a house down the street from me. It was a total flip and I had to learn as I went. Of course I over did it and when I was ready to sell I was only going to break even. So I brought in a property manager to run it as a rental. I did good with that so I changed up to buying houses that need mostly cosmetic repairs. I buy with 10000 to 16000 thousand in value and fix to rent. Then pull my money and move to the next deal. I'm only up to 5 houses but it is working.
I would target something where by benefit of skills, relationships, or location, you are likely to out-perform the average expectation.
For instance, someone that lives in a small university town is much more likely to out-perform and fix and flips there when compared to an out-of-state flipper. Local contractors, insider knowledge, ability to provide oversight will all play a role in project outcome.
Similarly, people in large coastal markets may have more access to capital and fundraising opportunities (at least that's what I have found). This is a completely different opportunity set.
Some people speak relevant foreign languages. Other people know a lot of industrial electricity standards. The list goes on. I would find a set of attributes where you are likely to have an edge, and target them.
@Keesha Duminie I just discovered this discussion string; great insights, feedback and suggestions. I'm trying to decide on my niche also. I'm deciding between SFR, condos, and MFR. B&H will be the strategy. Did you decide on your niche???