Selecting a Real Estate Investing Niche
by Christopher Levarek
“It’s not knowing what to do, it’s doing what you know.”
by Tony Robbins
I recently had a conversation with a real estate investor fairly new to the game. I began to see a very common so called “issue” with many people starting out in real estate investing during our discussion. See as we spoke, this person seemed to be pulled in so many directions, they simply couldn’t make any choice on what to invest in. Should they be passive in a syndication? Should they fund a deal all themselves? Should they join a mastermind? Should they wait until the market corrects? And on and on…
These questions that paralyze a person from action, or typically a new investor, are related to simply not being clear on purpose and even more important, not understanding one’s niche or strength.
Knowing what you are good at and then selecting a real estate investing niche is how an investor succeeds. Period. Oh sure, you can always change niches but this is how you start.
In a recent Valkere podcast on the “Art of Winning”, with Ashton Levarek and Beau Wiltshire , the topic was finding one’s purpose and selecting a niche to invest or work in. For Beau, this was selecting Mobile Home Parks and it all started with knowing what he was good at coupled with his vision for the future. Let’s take a look at how to do this in a easy three step process :
1. Know Your Purpose
It all starts here. What gets you excited? What gets you out of bed? What long term vision do you have for your family and you? Where are you going? Do you enjoy what you are doing now? What would you do if you could?
Start asking these questions. Read a book like “The Vivid Vision” by Cameron Herald if you need help defining this more in detail. This will help you to know your purpose aligned with your vision.
2. What are You Good at?
So what are you good at? More specifically, what are you good at when it comes to real estate? To understand this, Take a DISC test or personality test to understand your strengths. Now apply those strengths to positions in real estate.
All real estate deals involve acquisitions, financing, asset management, property management. Depending on your strength, you will know which area you align most with.
In general :
Acquisitions real estate roles are usually aligned with a person who is a high D, on Disc profiles. They typically dive into challenges produced by their environment and place a high priority on “winning.” They tend to be more receptive to logic, data and analysis than they are to somebody else’s “gut-level feel” or intuition.
Financing real estate roles are usually aligned with a person who is is a mid to high C on Disc profiles. They can best be described as “detail oriented” and have a strong preference for an environment defined by its stability. They enjoy opportunities to demonstrate their expertise and share the quality of their work. They are driven by logic and objective analysis. hey have a tendency to “overanalyze” but when they reach a level of comfort, they can serve as a calming source of objective support.
Asset management real estate roles are usually aligned with a person who is is a mid to high S on Disc profiles. They are highly motivated to help others and maintain the stability of their environment. They excel at cooperation and are routinely described as “calm” or “patient.” They respond to the challenges of their environment in a thoughtful and comparatively methodical manner routinely providing others with empathy and support.
Property management real estate roles are usually aligned with a person who is is a mid to high I on Disc profiles. They are “people oriented” and are motivated by their connections with others. They tend to welcome others in a warm and inviting manner that encourages collaboration and generates excitement. They pursue environmental challenges in an outgoing, enthusiastic and optimistic manner.
3. Select a Real Estate Investing Niche
You now know what you are good at and what your purpose or vision is. With this you can select a role and niche in real estate investing to get you where you want to be. Not only will you have far more success at position you are good at, you will be confident you are moving towards your goal working in your passion.
Let’s see how easy selecting a real estate investing niche is now that you are armed with this knowledge as an investor :
Example Investor # 1
Goal : Have more Time Freedom from W-2 with family
Personality : High SC on disc profile, good with numbers, introvert, enjoys time alone and quiet.
Real Estate Niche : Passive investor in real estate syndications. Hands off investing. Reviews investments and performs due diligence to select best investment with confidence.
Example Investor # 2
Goal : Help others find a good place to live while growing portfolio.
Personality : Mid to High I on disc profile, good with people and challenges.
Real Estate Niche : Manage self investment in a quad or small multifamily as property manager or self owner. Enjoys helping people out by supplying good affordable housing.
Example Investor # 3
Goal : Quit W-2 through real estate investing
Personality : Mid to High D on disc profile, highly competitive and does not know the meaning of no.
Real Estate Niche : Finds great apartment complexes by networking with brokers and brings them to an investing team or partnership. Plays role of deal finder.
In Final
As you can see there are many combinations or real estate investing niches, but it all starts with knowing the Vision/Purpose, personal strengths and then applying them to the selection. This is the easy button. This will pull you out of being stuck in analysis paralysis and never actually investing in anything!
I also encourage you to listen to the podcast “Why Finding A Niche Equals Success in Real Estate with Robert "Beau" Wiltshire” on the “The Art of Winning” with Ashton Levarek. It showcases a great story and how this process was used by Beau to get him where he is today. Happy Investing!