The real estate investing industry is an interesting one. It’s very complex and very diverse. There are endless ways to find your fortune in this industry.
If you try to be all things to all people—to really wrap your arms around every aspect of this business—chances are, you’re going to fall short. It’s not because you aren’t good enough, smart enough or strategic enough. It’s because there’s just too much to effectively master. You’ve heard it a million times before—jack of all trades, master of none. That couldn’t be more true than in real estate investing.
And that’s exactly why it’s so important to find your niche. What is your thing? What sets your real estate investing business apart from the others? Do you have a special skill? A targeted client base? Sellers and buyers who fit a certain profile or demographic—first time homebuyers, for example, or international buyers—who flock to you, and tell all their friends? If yes, could you be doing more of that? If no, is there an area that seems underserved or that aligns with your goals that could, ultimately, be your niche?
Why Finding Your Niche Matters
There are endless reasons to find and invest in your professional niche. Not only will you be able to focus your energy and efforts on one audience, one method and one path to success, but you’ll be able to cut out the rest—all the noise, clutter and back and forth that, ultimately, doesn’t relate to you or your business. It can get distracting, believe me. The less you have to tune into, the better. You’ll be able to build your business faster and more effectively, with greater success earlier on.
Another reason to lock down an industry niche? If you position yourself well, you’ll become “The Expert.” And that’s exactly who people want to work with, at the end of the day. They want “The Expert” who helps first time buyers, “The Expert” who’s great with creative financing, or “The Expert” who’s always got the best deals in this neighborhood. You trust “The Expert.” If you’re buying or selling, you know “The Expert” gets you and gets what you’re trying to accomplish. And that’s a good feeling. Effectively corner a niche in your industry and you’ll start attracting more leads that are primed to buy and sell—and who are primed to buy and sell with you.
Considering The Possibilities
Ultimately, you should choose your real estate investing niche based on two factors:
- Your market—what makes sense, what audience is underserved and what (or who) is moving the needle in your area right now?
- Your strengths and interest—what are you particularly good at, and what are you most interested in, industry-wise?
Maybe there are tons of rehabbers in your market, but very few quality wholesalers. Or maybe yours is a younger market filled with first-time buyers. Maybe there’s something really unique about your market—lots of undeveloped land, for example, or a heavy retiree population. Really assess your immediate area as well as what interests you most. See a match? If so, dig in a little more and see if that could be your niche. If not, consider some of these go-to niches—there could be a real need in your market if you explore a little more…
I know I’ve already mentioned this niche a few times, but that’s because it’s that rich with potential. Millennial buyers are finally hitting the market and they’re hitting it hard. What does that mean to you? If you’re in the rehab or buy and hold business, you’re likely going to see a glut of 20- and 30-something buyers at your next open house. They’re ready to sign on the line and they’re ready to do it right now.
But, often, they don’t really know which way is up. Having an experienced real estate insider on their side—in other words, you—could be a huge win for both sides. Consider focusing on young, first time homebuyers and, even, renters—they’re only going to grow in size and spending power.
If you’re in an area dominated by rehabbers and landlords, you may want to consider serving that population. In other words, you may want to jump into wholesaling as your niche.
Wholesalers find the best deals, get them into contract and flip those contracts to rehabbers to fix and flip. By cutting out those sometimes time-consuming steps in the real estate investing process, wholesalers are helping rehabbers flip more deals and make more money. And that’s why the best wholesalers are always in-demand—and always making serious cash for what, in most cases, amounts to very little work.
Real estate owned (REO) properties are bank-owned properties. The bank or lender has foreclosed on the homeowner and, already, has attempted to sell the property at auction—and it didn’t pan out. Now the bank has this property on their books and desperately wants to get it off ASAP. That’s where REO experts come in.
Your job in this niche? To negotiate with the bank and get an REO on solid terms. Then you can either wholesale it or rehab and flip it—the choice is yours.
While navigating REOs isn’t impossible, it does take some insider know-how and some solid relationships with the managers who oversee these properties. By focusing on this niche, you’ll build your skills while building those valuable relationships. And that will, no doubt, make your deals that much more profitable and that much more streamlined.
These are just three of the many niches kicking around the real estate industry. Assess your market and determine the needs. Maybe your area needs more rental properties, more retiree-friendly buildings or is in a serious upswing or downturn. No matter what, there’s a need for real estate investors—investors who can buy properties, rehab properties, sell properties and everything in between. By really assessing what’s going on and where you fit in, you’ll be able to create a solid niche and build a great business as a result.
We’ll talk more about niches and how you can both determine your best fit and profit from it at the next Nick Vertucci Real Estate Academy (NVREA) session. It’s a great place to really dig in and explore the industry, and figure out how to make the most out of the opportunities right there in front of you. As you grow and expand your business, you’ll likely start layering in more areas of expertise but, right off the bat, focusing on a niche can really be the way to go—and the way to generate some serious revenue seriously fast.