There is a growing niche that is waiting to be filled by savvy real estate investors. However, this particular area of investing can not only result in high profit margins, but also allow you to become a hero in your community.
The real estate industry, and those involved with it, has already suffered from incomplete deals. Even for the best and most experienced real estate investors, this is just a part of the business. In fact, deals that fall through need to be factored into lead generation and deal flow estimates. The fallout rate after a bad deal is clearly a lot higher among those that are new to the industry. How do you solve this problem, especially when a good percentage or troubled deals could be saved?
If there was only a real estate investor or firm that specialized in stepping in to save deals and helping others. You are in luck, as there is a niche that fits this mold exactly. It could save many investors, agents and other parties from losing potentially profitable deals they already have on the table. There are many reasons deals can fall apart. Some of it is purely a matter of being green and inexperienced. However, now there is help for those that need it. Experienced real estate investors can lend their services and knowledge to those that require it.
New real estate agents can doom deals from the beginning with poor contracts, overpriced listings and agreement, failing to provide due diligence on properties and other parties, failing to recognize the intricacies of loan programs and more. Other times, there can be issues that creep up later with appraisals, lender guidelines, title, repairs, liquidity and nerves. In a huge portion of these cases, a new voice in the mix with cash to close, willingness to overlook issues others won’t and recognition of how to overcome them can make all the difference. Unfortunately, few real estate investors think about stepping into this gap, much less look for these opportunities.
Those that want to help could find highly profitable win-win-win solutions for everyone involved. Agents, investors, buyers and sellers will view you as a hero if you are able to step in and moderate their individual situation. So what does it take to step into this position? Perhaps all it takes is a good negotiator and some wisdom. In other cases, it may simply be a matter of connections. Do you have tabs on great lenders, a waiting list of buyers or rent to owners, and third party vendors that can make their own decisions? Perhaps you have the cash to resolve deals and facilitate closings that would have otherwise fallen apart. Where do you find these deals and investment opportunities?
A quick look around the web and it shouldn’t be hard to find a few very quickly. From blogs to online real estate forums, there are at least hundreds of investors, agents and parties actively looking for help with deals. However, perhaps the best strategy for those interested in going down this path would be to get the word out and set up a referral network. Think about promoting online, building a database of investors, attending real estate investor groups and local industry functions, and letting Realtors, mortgage loan offices, title agents, attorneys and even appraisers that often get stuck with a lot of unpaid invoices.
It may not be the only real estate investing niche you want to engage in, but the potential for saving on upfront investment and time by walking into existing deals, and the huge potential for repeat referrals could make it worth looking into.
