Most get into real estate investing for the money.
And rightfully so. As most get into business for this reason (as I did). There’s not nothing wrong with this notion.
But, success or failure in the marketplace is not about what you want to make… it’s about what market wants.
Here’s a “secret” I keep hearing from giants in the REI business as well as marketing: Sell what people are already buying.
That’s not a ninja secret in anyway, but as I’m reading the book “Choose” by Ryan Levasque, It occurs to me that choosing the right market with the right offer is what failure or success usually boils down to.
This applies to real estate in many ways.
For instance, my good friend and mentor Andy, is working away at creating a mini mobile home park for himself;
i.e. he’s in the affordable housing market; Providing an alternative housing solution with easy and affordable payments to those who can’t afford a $300k house. A prime example of not just a needed product, but a market that’s on the rise.
Friend and mentor Stephen Mckee, moved from house flipping into building tiny homes for investors. There’s a great need and want for buy-and-hold investors to increase the income for their assets. Stephen provides a solution to that: by adding tiny homes (ADU’s) to the rental home.
This has worked doubly for me.
When I focused in on acquiring land in areas where people were buying land left and right, land sales were smooth. When I bought in areas where I “Thought” that it might be a good area, that’s where I held (and still hold) land in my books.
In real estate investing you provide a product.
Whether it be selling contracts to other investors (ie your market are investors looking to make/secure money), rehabbed homes (ie you’re in the market of retail primary housing), or land (many different uses)….
… you’re market is the most important decision that can make or break the next venture.
Thinking about what the market-wants first rather than profit is a chicken or egg debate.
But it’s the right order for success.
p.s. this tried-and-true principle of “giving them what they want”, applies to acquisitions as well; in the asset you pursue, and the type offer you give the seller.
p.p.s And, it applies to those who are looking to be more passive investors (what I’m swaying towards). For those who want to just park their money into something safe with good returns, parking it into a desirable market is a must.