5 Tips from the Pros — Finding Your Real Estate Investment Niche

Editor's Note: This post was originally published in December 2019 and has been completely revamped and updated for accuracy and comprehensiveness.

So, you've decided to take the plunge into the exciting world of real estate investing. Congrats! But with so many options available, figuring out where to start can be overwhelming. Don't worry, though. In this blog, we're going to explore how to find your real estate investing niche.

First things first, let's define what we mean by a niche. A niche is simply a specific area of real estate that you focus on. For example, you could specialize in flipping houses, buying and holding rental properties, or investing in commercial real estate. By honing in on a niche, you can become an expert in that area and increase your chances of success.

Now, let's dive into some tips for finding your niche.

Assess your skills and interests

One of the best ways to determine your real estate investing niche is to consider your skills and interests. Do you enjoy DIY projects and have a knack for the renovation? Then flipping houses might be right up your alley.

Are you passionate about sustainable living and energy efficiency? Then investing in eco-friendly properties could be a great fit. Take some time to reflect on what you're good at and what excites you.

"I flipped a 5-acre farmhouse with a pond in Ohio once that was pretty unique based on my normal desert flips. If I can make money on it, I buy it! When figuring out what works best for you—try everything and see what you like best!"
- Luke Weber, Nevada, Pro investor with 500+ flips completed

Consider the local real estate market

The local real estate market should also inform your niche. Is there a high demand for rental properties in your area? Then buying and holding rental properties might be a smart move.

Is there a shortage of commercial real estate options? Then investing in commercial properties could be a lucrative opportunity. By understanding the local market, you can make an informed decision about your niche.

"I bought a hoarder house. I added a master suite and removed walls between the kitchen, living, and dining room. I left a masonry fireplace in the center covered with stone and vaulted the entire living and kitchen area. We built a staircase to a finished basement. The original house, which was 1800 square feet, was completed at 2900+ square feet. It sold in 3 hours, site unseen. And since the Charlotte area surrounding uptown has thousands of properties to be rehabbed, millennials are gravitating close to there, creating a high demand. This has made it easy to find our niche."
-John Galarde, North Carolina, Pro Investor with over 30 years in the industry

Start small and expand over time

When starting out in real estate investing, starting small and growing your portfolio over time is important. Don't try to tackle too much at once. Begin by investing in a single property in your chosen niche and learn the ins and outs of that market. Once you have a solid understanding of your niche, you can begin expanding your portfolio.

"My niche right now is buying auction properties. Over time I have learned to leave my emotions out of the process, which has made me pay way more than I should have in the past. I now know how to set my ceiling and move on in case my max is surpassed."
-Albert Nyabwa, Pro Investor in Texas

Be patient and persistent

Finally, finding your real estate investing niche takes time and patience. Don't get discouraged if you don't find the perfect niche right away. Keep exploring different options and stay persistent in your pursuit. Remember, success in real estate investing is a marathon, not a sprint.

"I prefer to stick with what’s popular at the time and have a better chance of selling quickly. I am glad to see it looks like we’re turning a page in the design book and steering away a bit from white kitchens, grey walls, and subway tile everywhere. To find what works best for you, continuously test and tweak to see what works and what doesn’t."
-Steve Stimson, Pro investor in Texas

Network and seek advice

Real estate investing is a social business. Take advantage of networking opportunities and seek advice from experienced investors. Join local real estate investment groups or attend industry events to connect with others in the field. This can provide valuable insights into different niches and help you make informed decisions.

Final thoughts

So there you have it — some Pro tips for finding your real estate investing niche. Remember to assess your skills and interests, consider the local market, start small, network and seek advice, and be patient and persistent. With these strategies, you'll be well on your way to finding the perfect niche for you. Good luck on your real estate investing journey!