What is your favorite niche investment strategy?

What is your favorite niche investment strategy?

Real Estate Broker · Kansas City · Member since 2019 · 86 posts · 43 votes

The real estate investing model is broad, but boundless. Ample investing resources and advice has created an environment of repetitious, vanilla investment strategies. There is a ton of value for operators that can hyper-focus on specific investment opportunities outside the "norm". Some I find interesting:

  • asset roll up model
  • rezoning opportunities for highest and best use

What are some niche strategies you find interesting?

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        Rental Property Investor · USA · Member since 2018 · 325 posts · 222 votes
        6y

        Certainly value add to force appreciation!

        See this reply in the discussion

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        • Rental Property Investor · USA · Member since 2018 · 325 posts · 222 votes
          6y

          Certainly value add to force appreciation!

        • Real Estate Broker · Kansas City · Member since 2019 · 86 posts · 43 votes
          6y

          @Erik Hatch if it ain't broke, don't fix it

        • Rental Property Investor · USA · Member since 2018 · 325 posts · 222 votes
          6y

          Agreed @Austin Sine, but I like the value add plays.

        • Investor · Alpharetta, GA · Member since 2019 · 78 posts · 74 votes
          6y

          This isn't multifamily related but I'm personally a big fan of multi-tenant datacenters. Same model as multifamily (no single-tenant risk, no 100->0 occupancy). There are some big players in that space (i.e. QTS)  as it requires very skilled management (not a simple property manager) and a lot of money, but there is a lot of money to be made in the future by providing your tenants with better service and better amenities. 

        • Real Estate Broker · Kansas City · Member since 2019 · 86 posts · 43 votes
          6y

          @Jordan Burnett Data centers are very interesting. The operators with knowledge behind power and sustainability are winning. I believe some of these folks are signing contracts with wind farms, etc. Seems like a high barrier for entry. 

        • Investor · Alpharetta, GA · Member since 2019 · 78 posts · 74 votes
          6y
          Originally posted by @Austin Sine:

          @Jordan Burnett Data centers are very interesting. The operators with knowledge behind power and sustainability are winning. I believe some of these folks are signing contracts with wind farms, etc. Seems like a high barrier for entry. 

          Yep, very interesting. Just like every other investment, you can niche down fairly well within the datacenter space. Most bigger operations operate with large cages and sell to single tenants (i.e. Amazon/Microsoft/FB). But, if you can build to serve lower-middle market you can service multiple tenants and operate it very similar to a multifamily building (in a sense). 

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