Real estate investing can seem daunting, especially for those just starting out. However, many successful investors have found success by starting small and focusing on meeting the needs of a specific niche of customers.

Here are three examples of real estate investors who did just that.

• Tim Herriage: Tim Herriage is the founder of the Texas-based company, HomeVestors, which specializes in buying and renovating distressed properties. Herriage started small, buying just a few properties at a time and focusing on meeting the needs of first-time homebuyers. He quickly realized that there was a large market for affordable, move-in ready homes, and he was able to grow his business by catering to that niche. Today, HomeVestors is one of the largest home-buying companies in the United States, with over 1,000 franchises nationwide.

• Ryan Pineda: Ryan Pineda is a real estate investor from California who specializes in buying and renting out single-family homes. He got his start by focusing on meeting the needs of college students and young professionals who were looking for affordable, off-campus housing. Pineda would buy properties in college towns and renovate them to create comfortable, modern living spaces that were perfect for his target market. By focusing on this niche, he was able to grow his portfolio to over 30 properties and create a steady stream of passive income.

• Sarah Thompson: Sarah Thompson is a real estate investor from New York who specializes in buying and flipping properties in up-and-coming neighborhoods. She got her start by focusing on meeting the needs of first-time homebuyers who were looking for affordable homes in neighborhoods that were on the rise. Thompson would buy properties in these neighborhoods, renovate them, and then sell them at a profit. By focusing on this niche, she was able to grow her business and establish herself as an expert in identifying and investing in up-and-coming neighborhoods.

These three investors all started small and focused on meeting the needs of a specific niche of customers. By doing so, they were able to grow their businesses and achieve success in the real estate industry. While their strategies may be different, they all share the same key trait: They found a specific market that was underserved, and then tailored their business to meet the needs of that market.

I few days ago we spent a few minutes talking about a report by the National Association of Realtors. Now would be a great time to visit or re-visit the report.

What special experience or talent do you have that would help benefit one of the profiles in the report?

A new real estate investor should start SMALL and focus on a specific target audience when they are first getting started. The NAR report will give you a roadmap on how to help those targeted buyers and sellers.

Join us TONIGHT!

The topic for WREIA this month is:

“Real Estate Investing For SMALL Investors”

Come join us!

My sole focus for the January 2023 WREIA meeting is:

Helping you build a solid 2023 foundation.

Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road.

See you this evening!

Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the January 2023 meeting at 7PM.

Go ahead – grab a ticket. (And yes, there is still no charge to attend.)

Come join us!

My sole focus for the January 2023 WREIA meeting is:

Helping you build a solid 2023 foundation.

Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the January 2023 meeting Monday at 7PM.

Go ahead – grab a ticket. (And yes, there is still no charge to attend.)

Taking Action Is A Key To Success.

We are open for business and will be having our next virtual WREIA meeting on Monday, January 23rd.

If you would like to join us grab a reservation at this link. The reservation is free and we use your email to send you a link prior to the meeting.

Grab your seat for the next WREIA meeting this Monday and be ready to grow your business.

Stay safe and stay healthy,

John Peterson

I get this question a lot.

John – where should I focus?

Or maybe the variation of “John, where would you focus if you had to start all over today?”

Real estate investing can be a great way to build wealth and generate income, but it can also be overwhelming for new investors.

New investors are on the right track by asking where to start.

It helps to start by looking for a market you can help or where you may have some experience or expertise.

There is a great report put out by the National Association of Realtors.

It’s over 140+ pages of insights into the size of niche markets, and more importantly it gives details on the pain points of very specific markets and why people are looking for new homes, or selling their existing property.

The Home Buyers and Sellers Generational Report is found by clicking here.

One of the keys to success in real estate investing is to focus on a specific target audience – or what we are referring to as starting SMALL.

By identifying a specific group of people with specific needs and wants, new investors can more easily find properties that will be in demand and generate a good return on investment.

One of the most important things for new investors to do is to identify a target audience that aligns with their personal interests and skills.

For example, some investors may want to focus on people looking for multigenerational homes. These homes are designed to accommodate multiple generations of families under one roof, and they are becoming increasingly popular as more families look for ways to live together while maintaining their independence.

Another target audience that new investors can focus on is people whose primary language is not English. These individuals may have specific needs and wants when it comes to real estate, and targeting this audience can help new investors find properties that are in high demand.

Veterans are another target audience that new investors can focus on. Veterans may have specific needs when it comes to real estate, such as accessibility features, and targeting this audience can help new investors find properties that are in high demand.

People moving from rentals to home ownership is another target audience that new investors can focus on. These individuals may have specific needs and wants when it comes to real estate, and targeting this audience can help new investors find properties that are in high demand.

Finally, senior living housing is a target audience that new investors can focus on. This can include properties that are specifically designed for seniors and those with mobility issues. These properties may have specific needs and wants when it comes to real estate, and targeting this audience can help new investors find properties that are in high demand.

A new real estate investor should start SMALL and focus on a specific target audience when they are first getting started. The NAR report will give you a roadmap on how to help those targeted buyers and sellers.

I hope the report can help you find properties that are in high demand and also generate a good return on investment.

By identifying a specific group of people with specific needs and wants, new investors can more easily find properties that will be in demand and generate a good return on investment.

It’s important to start with a desire to help people, but also choose a target audience that aligns with the investor’s personal interests and skills.

Let’s dig a little deeper on this topic on Monday night at our 2023 WREIA Kickoff meeting.

Join us Monday night!

The topic for WREIA this month is:

“Real Estate Investing For SMALL Investors”

Come join us!

My sole focus for the January 2023 WREIA meeting is:

Helping you build a solid 2023 foundation.

Spend a few moments with us at our next WREIA meeting Monday night- it could save you a fortune down the road.

See you Monday!

Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the January 2023 meeting Monday at 7PM.

Go ahead – grab a ticket. (And yes, there is still no charge to attend.)

Taking Action Is A Key To Success.

We are open for business and will be having our next virtual WREIA meeting on Monday, January 23rd.

If you would like to join us grab a reservation at this link. The reservation is free and we use your email to send you a link prior to the meeting.

Grab your seat for the next WREIA meeting this Monday and be ready to grow your business.

Stay safe and stay healthy,

John Peterson

Thanksgiving is an interesting time of year for me this year.

It will be a first without both of my parents.

Both of my kids are out of the house and starting to venture into college and the other is full-time adulting.

In other words, times have changed, and will continue to do so.

In the last few days, its becoming pretty obvious that there have been some big changes around my house.

When it comes to investing in real estate, big changes have taken place over the last few decades.

It’s very different today that it was even 5 years ago.

Competition is coming from bigger and bigger companies, but that leaves local investors with a distinct advantage.

And if you can point out those advantages when it comes to buying an investment property – you can leverage those right into a favorable contract and closing.

You don’t need to be a smooth talker or a master salesperson.

In fact, the more “normal” you are – the better.

What you do have to know how to do is “ask for the order”. In our case, you simply need to make an offer on a property.

And if you know how to do it, you can sometimes get real creative with how you pay for that property.

Not everyone wants, or needs a big check in 7 days.

Because every situation is different, you need to know how to and be able to position yourself as someone who can simply show up and get the job done.

That goes a long way these days.

Have you heard of all the people getting laid off across the country now, and even more are expected in the coming months?

It would be good if your relatives around the Thanksgiving table knew that you were someone who could help someone sell and exit their property with dignity, before they get too far behind in payments and potentially lose their home to foreclosure.

I’ll share a few things that you can pass on to family and friends that will help position yourself correctly over the Thanksgiving break.

Now – back to our WREIA topic this month – Round 2 Of “Financing In An Unstable Market”.

Whether you are buying your own personal home, or an investment property, you are going to have to show up on closing day with a check.

You have options on where that money comes from – and believe it or not, it does not always have to come from a bank or mortgage company.

If you have great income and great credit, you are not going to have much of a problem.

But for some of us – we need to find alternatives – because the easy money of the last few years is gone.

And alternatives are out there – and getting bigger by the day.

Interested?

Join me Monday night at WREIA and be ready for the coming changes in our DC area markets.

It’s a perfect time to be an investor – especially one that knows how to make deals happen.

Join us Monday night.

The topic for WREIA this month is:

“The Best Financing Strategies In An Unstable Market – Part 2“

That’s right. There is so much to talk about that we broke this meeting up into two parts. And we are going to send you into 2023 armed with a few negotiating tactics that will set you apart from the ever fewer number of retail buyers in this market.

Come join us!

My sole focus for the November 2022 WREIA meeting is:

Helping you make deals happen.

Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road.

See you Monday!

Guess what percentage of homes were bought and sold through the MLS system last year – 2021?

The answer is confusing to most beginner real estate investors.

Some people are quick to answer 100%.

And the seasoned investors know that is – of course – wrong.

92% of properties sold in 2021 were sold using a traditional agent/broker relationship.

There are close to 600 separate MLS systems across the United States. Brokers and agents list their properties on the local MLS who in turn shares that data with other local and national online portals like Zillow and Trulia.

So what happens to the other 8% of properties? How are they bought and sold?

Similar to buying and selling a car – you don’t have to go to the dealership. You can buy and sell a car directly to another person and sign the paperwork in the driveway.

Buying a home isn’t quite that simple, but it’s pretty close.

Seasoned investors know that many of their best deal are “off-market” and bought and sold directly with a homeowner – bypassing the MLS, broker and agent relationships.

Have you heard of “For Sale By Owner” or FSBO properties?

Of course you have. Most of those sellers try to sell a house directly so they can avoid paying a commission.

Guess how that works out?

On average, FSBO’s sell for about $39,000 LESS than an agent listed property.

So how does this tie into the assignment over the last few days?

If you remember – I asked our WREIA members to send in examples of good news and bad news headlines.

The results were interesting. I’m going to share some more results tomorrow and save the best for our WREIA meeting – of course.

I hope you set aside a few moments and join us. It helps if you grab a reservation here.

The market is going to get tricky over the next couple of years – especially if you are new to real estate.

We will share the results and wrap up this whole series with our September WREIA meeting tomorrow, Monday at 7PM.

Join us Monday night.

The topic for WREIA this month is:

“The Good, The Bad and Reality”

Come join us online again this month!

My sole focus for the September 2022 WREIA meeting is:

Helping you make sense of real estate right now.

Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road.

See you Monday!

In my last email we talked about traveling long distances.

It sparked an interesting conversation with a friend who told me about their trip to Las Vegas when they were just out of college.

My friend was considering buying a condo in Las Vegas. We talked about the last time they had been to Nevada.

It turns out – their entire basis for wanting a condo in Las Vegas was because they heard that the city was still growing and they were nostalgic about that road trip 20+ years ago.

I asked if they had a specific area of town that they were looking at “investing”.

It turns out my friend was a little further down the road and had a specific property in mind.

We looked at a listing. Nice photos, but mostly of the view of the Las Vegas skyline at night.

Very small number of units in this small community and these condos were CHEAP.

You veteran investors know – these are red flags for a variety of reasons.

Together we spent the next few moments going over a couple of websites that show crimes in any city in the U.S.

What we found was shocking.

In the last 90 days, within a few blocks of this property, we found murders, attempted DAYTIME murders, robberies and a body found on a street corner wrapped in sheets, and the list went on.

Disaster averted.

When the story is too good to be true, just dig a little deeper.

If you are considering investing any amount of money in a property out of town look closely into the neighborhood and maybe even the general area. If you find something that looks unsafe, unfriendly or maybe something that makes you uneasy – take a second or third look.

Trust your gut.

EVERYONE IS DIFFERENT. We all have a different background. What makes one person uncomfortable, is perfectly fine for the next investor.

I believe everyone needs a safe place to live. We all know the history or Washington DC and how bad some parts of the city was back in the 80’s.

If I let any of that murky history cloud my judgement I would have missed out on a large number of my fix and flips through the last 20+ years.

The crimes going on in the last 90 days just outside of the Las Vegas strip remind me all to much of the DC area in the 80’s.

If you had the stomach for it and wanted to buy a property in DC and hold it for 40 years, you could have made a fortune. But you would have likely had a lot of investor pain and drama in those years as well.

My point is this. Before you take a look at an area simply because the city shows up on some national list as a great place to invest, slow down and dig in a bit.

Do some research – it’s never been easier with the tools available online today.

That’s our topic this month at WREIA – investing out of town. So let’s jump in the old virtual station wagon and take a look at what’s out there.

And kids – put your seat belt on and lock your doors. Never mind what’s under those sheets on the corner.

Who wants ice cream?

Join us Monday night for our July WREIA meeting.

The topic for WREIA this month is:

“Top Places To Invest For Rentals, Flips and Long Term Holds”

Bring some questions Monday night.

We have a great group of investors who tune in to watch, interact and help other local DC area investors each month.

Come join us!

My sole focus for the July 2022 WREIA meeting is:

Helping you find areas across the country you may want to invest.

Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road.

See you Monday!

I was having a short meeting this morning with a relatively new investor.

I stopped by the project they were working on and had a few tips to share to help speed things up.

The conversation turned to the email we sent yesterday about “Subject To” financing and when it was a good time to take advantage of that type of deal structure.

By the time we finished one comment got my attention.

“So by Alternative Financing, you just really mean “Different” Financing.”

Exactly.

It was a simple little change in language – but it was great to see the light bulb go off.

It’s a lot of fun when you are early in the process – learning about real estate – and all the different ways you can participate in the industry.

Some people love the hands-on work of rehabbing a house on their own.

Other people really enjoy the marketing and listing of properties.

And still others really get into the financing side of our business.

No matter what part you like the most – nothing happens until some capital changes hands. Somewhere along the way people like to get paid for their work.

When you understand how to finance properties that are a little outside the normal processes, you world will change and the possibilities become endless.

And that’s why this Monday at our WREIA meeting is so important. Over the next few months as rates start to rise and banks start to restrict access to their capital, other sources of financing are going to be incredibly valuable to your business.

Join us Monday night for our June WREIA meeting.

The topic for WREIA this month is:

“Finding Alternative Sources of Financing”

Bring some questions Monday night.

We have a great group of investors who tune in to watch, interact and help other local DC area investors each month.

Come join us!

My sole focus for the June 2022 WREIA meeting is:

Helping you develop the skills to identify alternative sources of financing for your projects over the next couple of years.

Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road.

See you Monday!