Fact: Many Realtors/Real Estate Investors Fail in Their First Few Years.
Many Realtors/real estate investors fail in their first few years because they never find a niche. What happens to most of them is that they try to do everything. And because they try to do everything, they ultimately fail at everything. They never really get good at anything so they quit and go back to a J-O-B.
Which is why the most important thing you can possible do when first starting out as a Realtor/real estate investor is to find your niche. Focusing only on that will allow you to understand who you’re targeting, how to help them, and to repeat the process for more and more success.
However, for a lot of people it is really hard for them to narrow it down because they want to be successful at everything and anything. They don’t want to refer away a potential client and turn down a paycheck. Instead, they try to learn as they go and make costly mistakes that fails the client. But once they narrow it down, it is so much easier for them to target their potential clients and refer any other business to someone else for a referral fee.
Therefore, if you don’t know where to start, The Matrix: Real Estate Investor Network has created a List of the many niches and nuances of Real Estate and how to decide which one may be the right one for you.
Tenant Agent – Represent a Tenant in finding a rental property
- Great Stepping-Stone as you can do a lot of them with little work and allows you to build your database of future clients and referrals
- Build constant inflows of referrals and you can refer them to others for a referral fee
Buyer’s Agent – Represent a buyer in a real estate transaction
- Great Stepping-Stone for making a lot more money than representing Tenants, but finding buyers is a lot harder and takes a lot of time and work
Seller’s Agent – Represent the Seller in Selling their Home
- Easiest to find as they advertise themselves as For Sale by Owners or have Expired Listings when their home didn’t sell while on the market
- This is the End Goal for most Retail Agents as they are the easiest to find and are the most guaranteed income if you can get them
Investment Realtor Only –helps investors to make money in Real Estate
Buy & Hold – using investment strategies to find/buy properties for renting and cashflow
- Gets the Return-On-Investment (ROI) that an Investor wants
Property Management – manages the investment property for maximum ROI
- Manages apartments, commercial space, mobile home parks, event space, single/multi units, and much more
Commercial Agent – Helps Buy and Sell Commercial Space and Businesses
- Specialize in selling commercial space and businesses that go with the property (i.e. Doctor’s Office)
Fix & Flip – help investors buy wholesale properties that can be fixed up and sold for a profit
- From Wholesale, Auction, etc.
- Financier – helps investors find lenders, use their own retirement to fund deals (Self-Directed IRA), or become a Hard Money Lender
Realtor/Real Estate Investor
Wholesales – Buying property under-priced and selling it to investors
- Learn to spot distressed properties and find the homeowners to make a cash offer at wholesale price and resell to investors or retailers
Probate – buying/selling property in Probate
- Administrating property after someone has become deceased.
- Learn to work with the different actors in a probate such as the trustee, lawyers, and more to get houses under-market
Tax Liens – how to buy tax liens on overdue taxes on properties for interest payments or to foreclose and resell the property
- Learn the process to find, buy, and sell tax lien properties
Pre-Foreclosures – buying properties from distressed homeowners to avoid foreclosure
- Working with homeowner’s to help them avoid foreclosure and the credit damage, fees, and save themselves from a bad deal.
Bankruptcy – buying/selling properties from people who filed bankruptcy
- Helping homeowner’s in bankruptcy on how to avoid the same consequences of a pre-foreclosure, but through the bankruptcy process
- Fix & Flip – Buy investment properties yourself or with other people’s money to fix up and resell to retail buyers
Don’t know which one is right for you?
Then let’s go over real quick how to find yourself a niche.
“How to Find your Niche” Step-By-Step List
Decide what niche you would like and explore/ask how you can help the people in it
- Questions to ask the Industry/Niche you’re interested in
- What are the different competitors in the market doing for success?
- What’s missing from our industry/niche?
- What could we do that would thrill people in our industry/niche?
- What do customers “put up with” in our industry?
Figure out the Needs of your target market and express it in your selling
- Finding a problem no one is solving and solving it
- Make it cheaper so your tapping into a market that wants it but can’t afford it
- Make something that is complicated, more simple and convenient for others
Ask yourself if there is value in what you do or sell:
- Do they want what I have?
- Do they value what I do?
- Are they willing to pay a premium for what I do?
How to make your own niche – Once you have your ideal client in mind, it’s time to create your own niche and market it into everything you do.
- You’ll Do What It Takes Niche – you will do what you have to for your client’s success
- Offer niche – You give cash offers no one else will
- Solve a problem niche – find fear and problem to solve that no one else can (Bankruptcy, Probate, etc.)
- Methods, Processes, and Formulas Niche -You can get them the ROI they want using experience and knowledge only you have.