Finding Your Niche & Growing

[Solomon Floyd]

A question I normally get asked by new investors, syndicators, and developers is "how did you find your niche?"

Finding your niche is not an easy process nor is it a quick one. It requires a lot of research and thought as you try to determine the right market conditions that will lead you to success.

These are the three moments that lead me to my niche of military and tertiary markets.

1. Being exposed to the other side:
I grew up in big cities for the most part and spent a lot of time around those who had significantly more than I did (two-parent households, ski trips, big houses, the newest car every two years). Growing up I thought that this was "normal" and how much of the world lived, it wasn't until I dropped out of college that this was the opposite of the truth. I saw how most people lived paycheck to paycheck and were just barely getting by in the world. They didn't go on ski trips for spring break or take winters at their homes in Florida, these people worked hard every day. This taught me the value of the working class and having a work ethic that would propel my own entrepreneurial endeavors. This shed a light on the lack of resources available to people who power our economy and allowed me to study the needs of the people who would eventually become my customers.

2. Fighting for a cause:
In the military, they instill in you that "you are fighting for a cause bigger than yourself" a phrase used over and over again to assure you that you are fighting the nation's battles to protect our way of life. While I didn't appreciate this saying at the time, I found it to be extremely beneficial when I arrived at my first duty station. What I saw was the same lack of resources that plagued everyone not born into the top, what I saw was an opportunity to benefit two groups at the same time, while serving a purpose greater than myself.

3. Build what they need:
I was at the front gate, scanning IDs, and I asked a sergeant how his weekend was. He looked at me and said how bad it was and how he hates his landlord, after about 5 minutes of him holding up traffic he told me something that caught my attention " I get paid to live here, but there's nothing worth spending my money on". The next day I saw him again and asked him what he was looking for, he very clearly stated that he wanted a room and bathroom to himself with all the service taken care of. Where I was from, this was incredibly common in rentals, but here there was no one else to rent from but bad landlords. I thought to myself, "if other people have this problem, then we may be in business." I bought my first home and renovated it to accommodate three bedrooms with their own bathrooms, a cleaning that came once a week to clean common areas, two sinks, two dishwasher, and two stackable laundry machines. I listed each room for $950 per month and filled them within 15 days. This later turned into our portfolio of over 250 units of single family housing.