Niche Property Investments: 3 Unconventional Choices

Real estate investing is perfect for those looking to make some extra money. But if you want to get the most out of your investment, it pays to think outside the box. A lot of people are now choosing niche property investments which usually don’t come with the same level of competition as typical homes but often have higher profits. Below are some of our favorite examples!

1. Land

Land is often dismissed as a bad investment because it is seen as lackluster. Why would anyone want to pay for a piece of dirt? The answer typically lies with the buyers, those who are visionaries and see potential where others do not. Perhaps the land is in an excellent location, making it ideal for commercial development or a subdivision. In fact, dividing a large parcel of land into smaller lots could prove to be quite lucrative.

If you’re looking to invest in land but aren’t quite sure how you want to go about it, why not try leasing it out? You could use it for parking, storage, or recreational purposes. And because there’s little overhead involved, any rental income would be virtually pure profit.

Routinely maintaining your land is generally the only expense. With low property taxes and high potential income, investing in land is a smart move. Do your research before buying any plot—familiarize yourself with future plans for developments in the area.

You want to buy land with the intention of selling it at a profit, but you don’t want to find out too late that the area is being rezoned. Work with a realtor who specializes in land so they can help you get the returns you’re hoping for. They should be familiar with similar recent deals and market conditions so they can help make your transaction go smoothly.

2. Mobile Homes

Mobile homes are a great niche investment option because there is less competition despite the potential for higher returns. Starting with mobile homes is also easier than having to come up with the cash required to purchase a typical single or multi-family home. Furthermore, costs such as those related to purchase, renovation, and flipping are significantly lower when compared to traditional homes. Repairs needed for mobile homes usually aren’t as complex or intense as they would be for regular houses.

Mobile homes can often be bought at a cheaper price by people who want to move fast, and there are plenty of buyers around. People are  gradually understanding that smaller homes use up fewer resources and space, so demand for them is increasing. Fixing up mobile homes generally requires less time and effort than flipping regular family homes would too.

Although not as luxurious, owning mobile homes or other off-beat housing can be profitable if done correctly. You just need to understand the market, do your research, and be willing to invest some time into it.

3. REITs & Investment Clubs

REITs (Real Estate Investment Trusts) are established when a large number of people pool their money together to form a trust. You can investigate which REIT you would like to invest in, and then—along with many others—you will be able to buy shopping malls, apartment complexes, or even skyscrapers. Oftentimes, REITs comprise thousands of investors, and can feel faceless. However, if you select the right one, there is potential to see great returns on your investment. Before investing any money, make sure to research how well the trust has done in recent years.

On the other hand, an investment club is a group of people who band together to invest in real estate. These clubs are usually pretty small, capping out at 20 members. They’re also much more hands-on than other types of investments; everyone plays an important role and contributes equally. Investments are voted on as a whole, and earnings are generally given out based on how much each person has invested.

Do you want to invest in a property with great potential returns? We would love to help you out! Give us your contact information, and we will be sure to get back to you as soon as possible.