What’s The Next Big $$ Making Opportunity for Real Estate Investors?

I know I know….the title of this post sounds like one of those emails that every Internet marketing GURU….or as some would call them, make believe real estate investors, send you every week about some ground breaking brand new program that they are gracious enough to sell to you for a bargain….I mean reoccurring nominal fee that you will have to call to cancel! Well shit I haven’t even started the article and I’m already going off on a tangent…..so back on course we go! Check out this video and then keep reading the article……

The market had been changing fast & furious as of late and inventory numbers are at historic lows! If you look back at the market in your area a year ago, chances are it has changed a lot….and for the better obviously. The shadow inventory that everyone has been talking about for the past year that was supposed to put more downward pressure on real estate prices never showed up! So will this shadow inventory sill show up? Honestly I really don’t know, but if it does I would bet my bottom dollar that the banks will continue to release them slowly so that the market isn’t flooded with REO’s at rock bottom prices. Instead I think REO inventory will likely continue to trickle out so that everyone and their mother can bid on them in an effort to secure their next flip project. If you haven’t noticed competition is fierce right now for listed REO’s since deals are in short supply, so its not our of the ordinary to have multiple offers on anything that even resembles a deal! These current market conditions are a far cry from what they had been for the last 2-3 years, but I guess its time to welcome back a sellers market!

So now that we have established that the market looks to have finally hit bottom and is now improving rapidly, what’s the next big money making opportunity for real estate investors? Well honestly there is opportunity in just about every aspect of real estate as the market starts to improve, but one niche in particular has a TON of money in it for those who can take advantage of it……so what is that niche? Drum roll please…bdbdbdbdbd…In-Fill Building! Now don’t tune me out if you don’t think there is any way your business is ready to jump into building new houses from scratch….there is plenty of opportunity in this niche even for those who can just source the product builders need to build on (aka wholesalers)! Currently in my own business we are focusing A TON of our marketing efforts on generating infill building property leads, and to be honest we have been having great success! The reason for the large amount of success we are having with these types of properties is because most real estate investors don’t market towards them, and most builders only buy through Realtors, MLS or word of mouth referrals. So a lot of the time we are the only people talking to these types of sellers!!

So why is there so much opportunity in this niche of real estate investing right now? Over the last 5 years or so new construction has come to a screeching halt and at the same time builder have been dropping like flies. Because of this there has been very little new construction product for home buyers to purchase, so now that retail buyers are coming off the sidelines in flocks to buy houses, new construction is at the top of their list…..and especially within the nicer close in neighborhoods. There is a huge transition going on right now where buyers are actually moving back into the trendy/established inner city neighborhoods, and out of the Mcmansions in the suburbs that were once the American dream. With this transition along with the prolonged real estate bust has come a huge amount of demand for infill new construction houses!

So how can you take advantage of this opportunity? If your business is at the point where you can take the leap into to actually building as well as rehabbing houses then its time to jump in! There is a learning curve to this side of the business, but the potential profit margins make it easily worth the risk. Now if you are not ready to start building houses that’s fine too, but that doesn’t mean you can’t get in on this money train! You see most builders only know how to acquire properties through RMLS, Realtors and word of mouth since they don’t generally market for their own deals! So this creates a HUGE amount of opportunity for wholesalers who can source builders quality properties! The best part is that they could care less about the actual house, which makes it super easy to wholesale them deals! My advise to you would be to start networking with some builders in your market and find out what kind of properties they are looking for and in what neighborhoods, then start marketing for them!

So lets recap what you should be doing to in order to cash in on this great opportunity to make money! First would be figuring out whether your business is ready to start doing some in-fill building or whether you would need to stick to wholesaling houses/lots to builders. Next would be to start networking with builders in your market as well as do some market research to find out where builders are making the most money (what neighborhoods)….these area’s are where you will be able to make the most $$ for yourself as well. There is a lot of money to be made within this niche of real estate investing over the next couple years, so jump in and get your piece of the profit!

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