Buying Multiple Properties: Finding a Niche
Posted by: reipro, in Buying Multiple PropertiesOne of the things that’s interesting about real estate investment - especially when you plan on buying multiple properties - is that it’s just like any other independent business: finding your niche is key.
(source)In real estate, your niche market can be a region or neighborhood in your town, a clientele group (such as vacation renters from Europe), or a property type (like renovating historical homes). When you target a specific area in real estate investment, you become an expert in that area. The more you know about your niche, the easier it will be for you to find the right properties and market them to buyers so you can make the most money from them.
When you’re going to be buying multiple properties - and, in general, when you’re going into business - it’s essential that you have a focus. Rather than simply looking at getting great deals wherever those deals may be, look to a particular area of town, especially if it’s an up and coming, growing neighborhood. Rather than simply buying any properties that can be rented out, look for those where it will be easy to find the types of tenants that you want.
Simply by finding your niche, you’ll discover that it’s easier to get into buying multiple properties. When lenders know that you buy a certain type of property regularly, they will be more willing to work with you. When you’ve established your reputation, you’ll be in a better position to find and make great deals that benefit your business. You’ll be focused and, even when you’re buying multiple properties, you’ll be able to better reach the goals that you’ve set for yourself.
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May 28th, 2008 at 12:30 pm
This is a GREAT piece of advice. There are a boat load of advantages to targeting a niche market as an investor… especially if you can narrow in on a specific neighborhood or area of town. One of the great advantages is that you become the professional in that area, and you not only will get to know the houses and prices very well, but residents in that area will begin to recognize you and will actually refer sellers to you.
I target a specific area in the towns that I invest in, and because I have bought and sold so many homes in there, I can basically negotiate over the phone without having to go out and look. In most cases I know the exact house they are talking about, or one just like it.
Knowing what you can pay for a house, and sell a house for successfully in any area is important, but when you know the area like its your own… it makes it much easier to do deals in.