Investing in real estate is great on many levels. In addition to the ability to make your own schedule and determine your own income, you have the ability to mold your business any way you want. If you want to invest full or part time, you can. If you want to focus on big commercial deals or small mobile homes, you have that option as well. One of the ways to determine the path of your business and to make yourself stand out is by focusing on a niche.
Many investors feel like they have to follow the path of others instead of paving their own way. There is nothing wrong with following what successful people have done, but by creating your own niche, you place your own stamp on the business. If you find an area of business you are more successful at, why not make that your focus? Short sales, foreclosures, tax liens, condos, mobile homes, multifamily units and commercial buildings are just a small sample of what your niche could include. It could also focus on a specific location in a certain town. By becoming an expert on a specific area, you gain a recognition that can lead to more deals. Is it better to be one of the many investors fighting for the same properties that hit the MLS or one of the few that is focusing on a small condo?
Your chances of getting the deal with increased competition is much less than if you go out on your own and focus on a specific area. Your niche won’t come to you overnight, but once it does, you can market it with full force. You can be John Smith “the commercial buyer” or John Smith “the condo king.” Realtors and fellow investors will take notice and when a specific deal comes their way they will think of you first. To truly succeed at a niche, you need to become an expert on it. Whatever your niche may be, engulf yourself in all facets associated with it.
You should always be ready to talk about it with people you meet. They may not know what a tax lien auction entails, but you will if that is your niche. The more obscure the niche, the less the competition and the more you will need to know about it. However, if done correctly, having a unique niche can lead to more buyers and sellers. There are many ways to make money in real estate and for every good idea there will be five investors telling you that your idea or niche isn’t going to work. With any business, you have to put yourself out there. When you do that, some people will critique what you do and how you do it.
If tax liens or mixed use properties are truly what you enjoy investing in, then stick with that. You will be much more motivated to succeed if you are investing in areas you enjoy. Whatever your niche is, find one that works for you and make it your passion. Just as no two investors are alike, you will find that two investors can have two completely different opinions on what works and what doesn’t. If you stick with what you know, what you are good at and what you enjoy, you will make whatever your niche is work for you.