"There's A Lot Of Capital Out There, There's a Lot of Capital....

[William Coet]

This phrase has been repeated more than ever in the past couple of years, and sales are confirming it.  From single-family, to retail, to industrial it seems all segments are seeing peak prices with very few days on market (if any). New construction is expensive with labor and materials costs at a peak.

Where are the opportunities these days? 

[Paul Moore]

Hi @William Coet. I’ve started my third decade as a real estate investor and I’m sure of this: the best opportunity in an overheated market like this is finding assets owned by mom and pop owners. I’m specifically thinking about commercial deals, but I’m sure it’s true and residential as well. Mom and pop owners often don’t have the desire, the resources, or the knowledge to upgrade their facilities to increase income maximize value. This means there’s a lot of upside left if you buy right and know what you are doing.

If you are not in that position right now, consider investing with someone who knows how to do that, and hopefully you can learn the business from them. 

A perfect example is mobile home parks. There are about 43,000 mobile home parks in the US. And almost 90% are owned by small operators. They’ve already seen incredible gains in value from cap rate compression. Many of them are mediocre and can be acquired, upgraded, and become a fabulous investment for you and your investors.

Self storage is often similar. Biggerpockets is publishing a new book on self storage on November 18 and a lot of those concepts are covered there.

Happy investing!