Are you a picky investor? We are and we don’t hide it. In a world with endless investing opportunities, it’s easy to get overwhelmed and trapped by indecision. How do you narrow down your options to start taking action? It’s simple: find your niche and own it.
So what is a real estate investing niche? Quite simply it’s the strategy, geographical area, or primary focus of your real estate investing business. Your niche is what you’re known for.
Finding your niche equals finding your focus.
When John and I first started investing, we wanted to do it all. We’d go to real estate networking events and come home starry-eyed with big plans. The options seemed endless, but that was the problem. Every time we saw a new shiny object, we’d switch focus and lose momentum. It wasn’t working, and when we saw others taking action, we’d get frustrated.
The solution? Pick one strategy to start and stick with it. Once you get comfortable, master it. Then decide whether you want to branch out or level up by combining strategies.
Today we’re known for investing in historic, rehab multi-unit properties with joint venture investors. This is our primary strategy and our strength; it’s how other investors describe us. We aren’t known for investing in student rentals, new construction or rent-to-own investments. Why not? It isn’t our niche. These are great investment strategies, but they don’t align with our strengths, preferences, or goals, so they aren’t our focus.
Do you need a niche? Yes, if you want to accelerate your investing goals and start taking action sooner.
Why? Trying to invest in everything is like trying to juggle and multi-task at the same time. It isn’t possible to focus on or execute every real estate strategy simultaneously with quality. There’s so much to learn, and things move quickly. If you aren’t focused balls get dropped, and you’ll burn out quickly.
So, how do you find your niche? Here are 3 simple steps.
- Focus on your strengths and eliminate what keeps you up at night. Create a list of investment strategies/types that align with your strengths and preferences. If that’s difficult, create a new list of strategies that cause stress, anxiety or just don’t fit with you. For example, you dream of flipping houses on TV, but you have difficulty assembling an Ikea cabinet. Sometimes it’s easier to list what doesn’t work than what does.
- Stay away from the ‘FOMO Trap.’ Fear of Missing Out (FOMO) is hard to overcome when you’re networking with other investors. The key to finding your success is to believe in yourself. You aren’t missing out. You’re investing too —in your own way, on your path. Instead of dropping everything to replicate someone else’s strategy, ask yourself, “What knowledge, tips and resources can I adapt to my investing strategy?”
- Be true to yourself. In a world where everyone has an opinion on what you should do, choose the investing strategy that works best for you. Don’t blindly follow investing trends, real estate guide books, and flashy online videos. We can all adapt existing investment strategies to make them our own. You don’t need to re-invent the wheel, but you don’t need to do what I’m doing either.
Remember, your niche isn’t a blindfold. Choosing your niche doesn’t mean you only invest in one strategy forever (unless you want to, of course!). This is simply a way to focus your energy and avoid bouncing from one idea to another. If you see a great investment opportunity along the way that isn’t part of your niche you can still jump on it (…or get it under contract and JV or tip it off to another investor who’s in that niche).
So, are you a picky investor? What’s your investment property niche? We’d love to hear from you!
Co-owner of Rethrive Properties, Kimberly is an e-learning developer, corporate trainer, experienced real estate coach, and content writer. As one of those quirky people who remembers endless details, Kimberly loves researching, reading, and exploring new ideas. Her mission is to educate others with creativity and integrity so they can, in turn, add value to those around them.