If you are a fan of real estate investing for building wealth, you know that market intel is the key to making the most profit from your investments. A recent survey from Real Estate Express has identified six of the hottest niches in the real estate market, as determined by salaries earned by real estate agents:
- Luxury Residential Properties: The hottest niche is the one for luxury properties. It is so lucrative that there is even a specialist designation for real estate professionals who focus on the luxury market. The upper-tier residential market is characterized by high-quality luxury homes that offer generous dimensions and top amenities in the most desirable neighborhoods.
- Commercial Properties: These include offices, retail stores, restaurants, and mixed-use properties. Small commercial properties are often very affordable, and can offer an appealing profit profile to flippers. The ideal property is one that has recently been vacated in a busy commercial area. Often, stores go out of business for poor sales that have nothing to do with the underlying property – these can be excellent investments.
- Relocation Services: An interesting real estate niche deals primarily with relocation service rather than property ownership. Typically, relocation involves homes owned by executives, providing a solid floor for service pricing. Relocation service providers are involved with two properties within one deal. If you provide this service as a realtor, you have a chance to reap two commissions.
- Foreign Investment: A riskier but lucrative niche is passive investing in the foreign real estate market. Before you invest in it, make sure you understand the gap between list and sale prices, the average number of days on market, and the amount of supply overhanging the market. If you have the time to do the research, you have a good shot at an excellent return on investment.
- Investment Properties: Some rehabbers are interested in long-term rental income rather than fix-and-flip capital gains. Both strategies provide lucrative opportunities for wealth accumulation. You might favor a buy-and-hold strategy where you snap up inexpensive properties in gentrifying neighborhoods and holding the properties until their prices rise. If you have little capital, you might consider wholesaling, in which you profit from the difference between the seller’s contracted price and the buyer’s purchase price.
- Eco-Friendly Properties: LEED-certified properties are one of the hottest segments in the real estate market. These properties are the gold standard for green housing, and usually sell at a premium. Eco-friendly properties are a good choice for developers who build rather than acquire, because they can construct a green property from the ground up.
If you need help financing a real estate investment in the Greater Washington D.C. region, you want Specialty Lending Group. We have expertise in many different niches. With affordable rates and flexible terms, SLG is positioned to help you get your deal done! Contact us today for personal, experienced service.