Find Your Niche as a Real Estate Investor
Many professionals must find their niche. For example, a chef may be able to cook just about anything, but perhaps he is most well-versed in seafood. Or, a makeup artist may be able to work on everyone from a Disney princess to the creepiest of monsters. However, she may be most successful at her work with zombies.
Finding your niche as a real estate investor helps you gain experience, knowledge, a network, and a plan – by focusing on an area that becomes your specialty. It is up to you to find that niche and mold it, allowing you to become the most successful (insert niche) real estate investor in Atlanta!
We’ve put together a list of the most common niches in the business. Check them out!
Single-family homes rest on their own property and are not a shared residence. They make up more than half of the residential market and are popular all over the country. These tend to be the first niche real estate investors turn to. However, receiving the rent from only one resident may not provide enough of the cash flow the investor is looking to receive. However, if you are looking to get your feet wet and don’t want to be overwhelmed with multiple families at once, this may be your best starting point.
Multi-Family Apartment Buildings
Apartment buildings come in large and small, and all sizes in between. There are duplexes, triples, quad units, small multi-unit buildings, and larger high-rise multi-unit buildings. Each of these come with their pros and cons, so it really comes down to what you are looking to get out of the investment.
Consider the answers to these questions:
- Are you prepared to carry the load should you have vacancies within your building?
- Are you prepared to handle repairs and upgrades to more than one unit?
- Are you prepared to maintain communal areas, as well as units?
- Are you willing to invest in marketing to ensure your building stays at a high capacity?
Just as with any investment, there are both pros and cons to investing in a multi-family building. Some tend to think that there is a magic number of units that can make it more worthwhile, say 100 units opposed to 25 units. This is something you will have to discover for yourself.
Commercial properties are a niche that some investors love while others avoid altogether. These properties vary greatly in size, type, and location and are often rented to businesses, rather than individuals. Commercial property can be office space, retail space, or even located within an industrial area.
One of the biggest pros of commercial property investment is that leases are often secured for a greater period. However, a con is that once they become vacant, they may stay that way for an extended period.
These are just a couple of the most common real estate niches. It is important that you learn all areas of the real estate investment business, but become a master at the niche that fits your needs and wants.
Marina Shlomov, a managing partner at ALH|Podland Rental Homes Property Management is the author of many articles on Landlording, Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999 and a property manager, Marina is an investor herself. Her property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out atwww.alhpodland.com.
You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on Facebook, Google+, Blogger. and YouTube.