Defining a preferred niche when you’re in real estate investing can help you establish yourself as an authority, which leads to better deals and more sales. Being in a preferred niche can also help when you approach private money lenders, provided you’ve chosen your market wisely.
1. Single-Family Fix-and-Flips: Going with traditional fix-and-flips is quite common and these get funded all the time. However, you may want to consider digging a little bit deeper and working a specific region, choosing a specific style of home, or catering to a certain demographic. For example, some like to work only in established neighborhoods, while others like to focus on severely distressed properties, and some prefer historic homes. Choose an area that feels right to you and run with it.
2. Multi-Family Units: If you’ve already done some fix-and-flips, multi-family units are a sound way to diversify. You can treat these as flips or repair and hold, giving yourself a steady trickle of income to help you grow your wealth.
3. Fix-and-Holds: Whether you plan to rent your space out through something like HomeAway and Airbnb or get long-term renters in to cover costs and provide a revenue stream, fix-and-holds can be a sound bet. Make sure you’ve got a method to refinance or pay off your balance when your term ends though, as loans through are Arizona Private Money Lenders typically short in duration, lasting fewer than five years.
Choosing a Niche Shows Others You’re the Real Deal
When you establish yourself in a specific niche, you demonstrate you’re an authority in that area. That’s a boon when you’re working with Arizona private money lenders, but it goes deeper than that. For example, the longer you focus on a niche, the more people learn what area you specialize in. Other investors and sellers are likely to contact you when they see a property that fits your usual guidelines, saving you the trouble of hunting them down. Buyers who need properties like the ones you produce will also seek you out, meaning you’ll spend less time marketing and homes will start selling before you’ve even listed them. On top of this, it makes your marketing easier; from your website to your business cards and even social media, you’ll be able to present yourself as the authority in an area and network more with people you can help as well as those who can help you.
If you can master one area, you can diversify too.
Being an expert in one area will help you make better connections, streamline processes, and make you more appealing to an Arizona private money lenders, but markets often run in cycles. Because of this, you should work with various investment opportunities to fortify your revenue streams. Explore different parts of your city or state, create a portfolio of rentals at different price points, and pay attention to shifts in the market. That way, you can explode your wealth in the here and now with your niche, plus will be ready and able to pivot and continue growing even if the markets change.
Level 4 Funding LLC
Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 44 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 43 years.