Identify Your Niche To Usher In Real Estate Investing Success.
When it comes to starting a business, everyone thinks big — they want to be the next Bill Gates or Warren Buffet. This is especially true in real estate. “I don’t want to ‘just’ invest; I want to be the biggest investor in town.”
It’s great to have goals and to want to be the best at what you do. But a problem arises when you get lost in trying to be the best for everyone.
I have worked with real estate investors for over 20 years. I have witnessed the growth and best practices of some very successful investors as our clients developed their model, tested it and repeated. The investor became the subject matter expert. Whether they found deals in the MLS, called and emailed from probate lists, or spent significant time at auctions, the common thread was that they picked a lane and stuck to it. They narrowed their purview to find their best practice for sourcing leads and kept focused. They slowly built a reputation in their target market and became highly respected and sought-after for their advice. They earned their reputation by providing five-star service in one arena.
Success in real estate investing can be found by drilling down your audience — and not enlarging it too soon. Identify your strengths, and replicate your accomplishments. Think in terms of templates and the cost savings associated with reusing versus reinventing, and you will rapidly see the return on investment come from your niche. With a quick tweak to a property analysis sheet, you may find yourself able to easily bid (or not bid) on a property based on your examination of the many previous deals in that property type. This may sound simple, but ambitious real estate investors often lose patience and discipline too soon and become distracted by a shiny object in another arena of real estate investment.
The last couple of years has brought an explosion of apps and solutions from the tech industry into the real estate investment space. It is often noted by industry insiders that real estate is one of the last industries to be disrupted or “flipped” by technology. And it’s true that there are some smaller-time investors and property managers who still operate with processes that date back over 20 years. The members of this group who want to burst out of it are my niche. I recently consulted with a successful investor who had owned rentals for over 30 years and was ready to optimize systems and ensure his family would have web-based solutions in place when they inherited the investments. He had mastered his ability to acquire and had grown a successful, large portfolio, but he knew it was time to bring the technical expertise to automate solutions into the fold in order to ensure an easy transition to his family.
While property/investment management is just one small niche in the much bigger real estate industry, there are several very specific sub-niches in software solutions. You could integrate time-saving technology solutions for the acquisition process and then transition into other management software options for marketing, screening rent collection and maintenance.
Successful real estate investors finds out quickly just how many areas of knowledge they will need to become familiar with and set goals to succeed in specific niche markets. This allows each investor to meet the needs of a few and capitalize on that success by becoming the subject matter expert in that space. Use your stories and experience to share, whether it’s through a blog post or a real estate conference session, and witness how giving back will grow your business. The only question is: what is your niche going to be?