We buy homes in Fort Lauderdale, FL. When we write ‘niche’ real estate investments, we refer to an idea that is unique and stands out compared to more traditional options. For example, unlike conventional real estate investing methods, niche areas are something you do not see every day, perhaps provoking reactions of confusion, surprise, and realization that it’s a hidden gem. If you diversifying your real estate portfolio is of interest to you, continue reading this post where we discuss and analyze real estate niches in Fort Lauderdale, FL.
At Your Trusted Home Buyer, we buy houses Fort Lauderdale and all across Florida and can help you sell your home or investment property fast and hassle-free with no strings attached. We buy property in any condition, cover the closing costs, and can help you close on the transaction in as little as one week!
Seller Niches are circumstances or situations that force people to sell their homes. These investments can be more for the more advanced experienced individual and typically is the right choice for bargain hunters. Some seller niches include:
Preforeclosure: The time gap between an official foreclosure auction and the homeowner defaulting on his/her mortgage payments is termed as the preforeclosure period. Given the right strategies, preforeclosure can be a profitable niche, and a great bargain given the homeowner is looking to sell the home at all costs. Flipping the property can lead to significant returns, but keep in mind that it is a sweat and capital heavy investment.
‘Real estate owned’ properties are those that are owned by the bank after foreclosure. Banks’ fundamental source of generating revenue is through loans, not property. Hence they often list their properties quite aggressively to entice a sale. REO investments can be quite profitable if they are flipped, but bank-owned properties usually require extensive repairs and insurance policy issues. This is a potential idea if you are looking at it from a long-term perspective, and you have the necessary capital to cover initial costs.
Investing in distressed property is beneficial if you want to diversify your portfolio and strengthen critical areas like an appreciating market value and a great return on investment.
The land is heavily touted as one of the most potent investments to have in your portfolio. With the ever-growing demand for space, land is an investment that can appreciate strongly. One profitable niche idea with land is subdivision. Subdivision is the means of selling specific portions of the land for profit. In most professional opinions, land is a long term investment. Letting it appreciate in value and then selling it to be used in a large project or external development can be very profitable.
When people think of real estate investing, their first thought is often regarding buying or selling property. Nevertheless, REITs or real estate investment trusts are a unique way of investing in the real estate market that is quite comparable to how we invest in mutual funds and stocks. REITs are highly liquid, just like stock, which makes them radically different from physical property investing. REITs invest in a basket of real estate products that range different projected returns and levels of risk. REITs may focus on specific sectors or could diversity and buy chunks across the board.
REITs are for those investors who want to invest in the real estate industry but also do not want to compromise on the ability to liquidate. Furthermore, it is better suited for more passive, risk-averse investors prioritizing diversity.