Finding your specific niche early in your real estate investing career will allow you to commit and focus your efforts on one area, rather than spreading yourself too thin across many different facets of the industry.
Focusing on a specific niche may allow you to increase profits more quickly by needing less time for due diligence and beating the competition to the best deals.
You may also want to focus on a specific geographical niche and become an expert in the real estate market in that specific area. National real estate news may not affect what is going on in your specific market.
Focusing on a specific type of property will have similar advantages. As different types of properties perform differently in different markets, you will become an expert at exactly how your type of property is performing in your area.
It’s important to understand price points in your area and how an increase or decrease may affect your deals and profits.
You’ll also need to determine who your tenant base is if you’re dealing with rental properties.
When you are an expert in your niche, referral business becomes more prominent and it becomes easier and more lucrative to deal with local lenders, suppliers, contractors.