Real estate investing is an excellent way to generate extra cash-flow. A lot of people are moving towards niche property investments … the type of investments you don’t see floating around everywhere and wouldn’t expect to be high-income producers. However, niche markets offer less competition and sometimes higher paydays.
Consider a few of our favorite examples below.
Niche Property Investments: 3 Unconventional Choices in Chicago
Land is often paid no attention because honestly, it isn’t very stimulating. Who would choose to pay cash for a patch of real estate? Usually, the folks buying are visionaries. They see opportunity in a parcel that some people have let slide. Maybe the land is in a very good setting, so building and enhancing upon it is a guaranteed investment. Or maybe subdivision is achievable. Slicing up a large parcel of land, and selling smaller pieces could be incredibly rewarding.
An additional choice for land investment would be to leave the plot of land as-is and lease it out for parking, storage or recreational use. Thanks to the inexpensive expenses, any rental income you make is almost 100% profit.
Land is rather easy to take care of. Standard landscaping and clearing are typically the only required expenditures. Property taxes are minimal, and the possibility to make a great income is high. Before you begin buying land, find out about the area where you wish to invest. What are the future plans for the local area? You don’t plan to buy with one intention, only to find land in the area is currently be rezoned. Partner with a realtor who focuses on land and who can help you get the earnings you want. They should know what is taking place in the local market and have the capacity to help you find excellent land deals.
2. Mobile Homes
Mobile homes are a great niche investment because they offer low competition and high rewards. Starting with mobile homes is a lot easier than producing the cash to purchase a single or multi-family home. Costs to buy, renovate and rehab are all much less expensive comparatively. Patching them up is usually pretty quick, and doesn’t require the overwhelming repairs a regular home would. You can most of the times find good deals on mobile homes from people who would like to move quickly. And buyers are almost everywhere. Smaller homes are in as people are realizing how much more efficient a small space can be. Flipping a mobile home often takes much less time and work than a single family home would.
While it might not be the most glamorous property to own, investing in mobile homes and other alternative housing, offers big yields when done right.
3. REIT’s & Investment Clubs
REIT’s (real estate investment trusts) are formed when lots of people come together to form a trust. You can research which you want to invest in, then, together with many others, you will have the power to purchase shopping malls, apartment buildings, and other commercial assets. REIT’s can be composed of thousands of people and can be impersonal. However, when you choose the right one, you have the potential to see really good profits. Research before you invest to see how the trust has performed in the past.
Similarly, an investment club is a group of people who pool their money to invest in real estate. These clubs are much smaller, typically no more than 20 people, The clubs are much more hands on, with all members playing important roles and doing their part to pull their weight. Investments are voted on as a group, and profits are typically divided proportionally to what the individual has invested.