By Tamara Aragon — In my previous blog post, found here, you learned 10 strategies referred to as Roads that you want to consider in your real estate investing trek.
Now, in addition to these strategies, you will need to consider the type of properties you want to go after, developing a marketing strategy to find motivated sellers of properties. The following is a short list of types of real estate you can buy…
There are basically three types of investment properties to consider:
- Vacant Land – Land that has not yet been developed
- Residential – Properties that contain 4 units or less
- Commercial – Properties that contain 5 units or more the niche in which to focus your marketing efforts in your search for discounted wholesale properties.
The Big Question ….How do you get properties at a discount or at least at the lowest price?
Answer: Start by becoming educated in one or two niches… and then take the steps to do it!
According to the dictionary, a niche is a distinct segment of a market. So where do you find this distinct segment of the real estate market we call discounted properties; ie wholesale deals?
The obvious place to obtain a discounted property is to work with a motivated seller. This is the owner who wants to close on the sale of their property quickly and easily. If a seller is motivated they are willing to provide you the discounts needed to provide you a property where you can either sell quickly for a profit (flip) or cash flow at a profit (buy and hold).
So in what type of real estate niches are you most apt to find discounted properties? Over the next few months I am going to be going over a few of the most widely used methods of buying discount real estate.
Now keep in mind, you don’t want to be swayed to change your mind with the introduction of each niche. If you have started on one niche that you know can bring you deals… that’s great! Stick with it. However, good to know all the options and perhaps after you find success with one niche, add a second to it.
I have found the most successful investors become experts in 1 or 2 niches. Too many “wanna be” investors get pulled from one niche to the next never truly finding success anywhere. I suggest you evaluate these niches and pick the one that will bring the most opportunity in meeting your area market needs, your personal circumstances and your goals. it’s important you stay focused on doing one niche til you find the success you set out to achieve… profits!
Watch for my next blog where I will share with you the first of several of the most profitable real estate niches for you to consider and the steps for how to do them.