Any aspiring real estate investor, Realtor, or startup founder that has spent more than a few minutes in study won’t be strangers to the concept of choosing a niche. Having a niche makes it easier for real estate professionals and companies to stand out and gain traction. It’s perfectly fine to have more than one real estate niche, to develop into more niches, or even potentially to switch later. The big question is where to start, and how to choose your first niche. Or perhaps for those needing more; how do you effectively choose your next niche?
Finding the Space
Finding a niche to occupy starts with surveying the real estate landscape to discover a space to fill. Where is there a void you can easily step into? Going head to head with multiple, more experienced, and better funded competitors certainly isn’t normally the fast track to easy success. Finding a less occupied zone to make headway can definitely be more desirable.
Don’t just assume: research, and research thoroughly. This might start by driving and checking out real estate signs and offices, followed by browsing local real estate magazines and the internet to get the perspective of consumers in the marketplace. Take this to the next level by speaking with local real estate pros, coaches, and analysts and reviewing the hard data. There may be a lot more going on that the numbers can reveal than meets the eyes.
Of course, with the U.S. real estate industry growing, some may find it challenging to find a vacancy to make their niche. That’s okay. If there isn’t an obvious void, look for what you can do better, where the need is, and what can be improved upon. Your uniqueness is your advantage.
Note: After digging into the following, make sure to research again to verify your theories and be sure that there is enough business in your niche to meet your goals.
Take inventory of what you have: monetary included. What retirement savings, liquid funds, assets, and income do you have that can be used to develop your presence in your chosen niche? If you don’t have capital or surplus income coming in, do you have credit that can be leveraged? If not strong personal credit, can you build business credit, leverage contacts and other people’s money, or find financing solutions that don’t require good credit?
What about your time resources? Do you have extra time to compensate for it? Many others may have large amounts of capital they want and need to put to work. They might even know more, but lack the time to execute. Maybe you have more time than competitors trying to move into a niche? If you are lacking on time, who can you leverage?
What areas do you know more about than others? Or what can you learn about that others don’t have time to? What about skills and talents? Where are your specialties, strengths and expertise? What do you do better than others? Maybe you have an edge in local knowledge, design talent, sales skills, attention to details, technology, copywriting, networking, or something else. Play to your strengths, improve what you can and delegate the rest.
What do you enjoy? What are you passionate about? How can you use that and integrate it into your real estate to stand out? Maybe it is vacation properties, pet friendly properties, luxury rentals, log cabins in the mountains, or ranches.
You don’t have to leave your values out either. In fact, there may be more room and need for value based niches than ever before. Do you really care about going green and living sustainably? How about ethical development, or providing affordable housing? What about giving back and paying it forward?
What will your niche be? How will you bring your own unique brand of real estate to the world?