Real estate investing in a great way to generate extra income!
These days more and more people are on the lookout for niche property investments. What do we mean by niche? Well, we’re referring to investments that you don’t see every day and don’t expect to be high-income producers.
Then why on earth are they gaining so much attention?
The answer to that is simple.
Niche Markets Offer Less Competition.
A result of this can be higher profits.
To show you what we mean, we’ve found three examples of niche property investments in Miami.
Land is often overlooked because if we’re being honest, it isn’t very exciting. Who would want to pay money for an empty, vacant field?
In most land buying cases, the buyers have seen potential that others have missed.
Maybe the land is in a great location, so building and improving upon it is a surefire investment. Or perhaps subdivision is possible. Splitting up a large plot of land, and selling off smaller lots can be highly profitable.
Another land investment option is to lease it out for parking, storage, or recreational use. Because of the low overhead costs, any rental income you make is practically 100% profit.
Plus, land is straightforward to maintain. Usually, the only required costs are routine landscaping and clearing. Plus, property taxes are low, and the potential to earn a fair amount of cash is high.
Just make sure you research the area and future plans for development before you begin purchasing land. You don’t want to buy with one intention, only to find that the local area is being rezoned. For guaranteed results, you should work with a realtor who has experience investing in this market.
Mobile homes are a great niche investment because they offer low competition and high returns. Investing in mobile homes is easier than getting the cash together to purchase a single or multi-family property.
In comparison to houses, costs to purchase, renovate and flip are far lower. Plus, restoring and fixing any damage is usually pretty simple, and doesn’t require extensive and time-consuming repairs that a regular home would. And, flipping a mobile home is often quicker than a typical family property.
While owning and selling mobile homes might not offer the same appeal as other investments (they’re not exactly the most glamourous real estate to own), when it’s done right, investing in mobile homes and other alternative housing can lead to a satisfactory return on investment.
REIT’s & Investment Clubs
REITs (real estate investment trusts) are formed when people come together to build a Trust. It’s not too complicated to research and find one you would like to join. Then, along with like-minded investors, you can purchase shopping malls, apartment buildings, and even skyscrapers.
REITs can be composed of thousands of people and free from interpersonal relations, which for some people, is an attractive option. If you join the right one, there is clear potential to earn excellent profits. Do some background research on the trust beforehand to see how it has performed in the past.
Similarly, an investment club is a group of people who pool their money together to invest in real estate. But in comparison to a Real Estate Investment Trust, these clubs are much more intimate, typically comprised of no more than 20 people. These clubs are also more hands-on, with all members required to work hard and show commitment to the club. The group votes on potential investments and profits are typically divided proportionally to what the individual has invested.