I was at a presentation from the late Dan Kennedy and he said there were 27 different niches in real estate investing. He went on to only list about half of them! I super was curious as to what the full list was and it’s bugged me for years that I never got his full 27 niche list. I was determined to figure out exactly what were the magic 27 so I started making my own lists.
I quickly discovered that there were hundreds of different niches and the classifying any niche was really hard b/c many of them overlapped. So I finally came up with a better list and classification to help beginners understand just how many opportunities there are in real estate investing. And, the fact is that all real estate investing is commercial real estate since the goal is to make money.
Here’s my list so far which I’ve broken down into
three, four major categies:
- People Housing
- Business Housing
My list so far, but please let me know if you have others to add!
Land – Raw, undeveloped land, that only requires occasional mowing or fence repair.
- Land banking – buying and holding until you can make a profit
- Land Development – buying large tracts and selling in smaller parcels or even developing subdivisions and then selling to Builders or individuals who want builder-ready lots.
- Recreation – if you’re lucky enough to own land with incredible natural resources like a lake, mountain or hunting, this is about as easy as it gets
- Agricultural – this can livestock or bees or even leasing to someone who will do the work.
People Housing – anything where people live from single family to multi-family and everything in between
- Single Family Fix-n-Flip – the most popular niche of all!
- SFH – Wholesaling or bird dogging, where you just assign the contract to another investor
- SFH Long-term Rentals – Classic landlording with annual leases
- SFH – Short-term Rentals – AirBNB, VRBO, Homeway, etc. Not just vacation rentals but fully furnished, hotel-like rentals usually for less than 30 days to avoid having to do leases
- Group Homes – multi-people homes are becoming more and more popular for different audiences. In this niche, there are sub niches like:
- Sober Homes
- Supported Living for Older folks
- Millenials who just want an inexpensive living solution
- Other disenfranchised or hard to house populations like released prisoners, sex offenders, etc.
- Small Multifamily – up tp 4 units, duplexes, towhhomes, etc.
- Multifamily – Apartment investing
- Mobile Homes – they are now called Manufactured Homes but this name has stuck
- Mobile Home Parks – Parks can be just ‘renting the dirt’ or where you rent the homes as well
- RV Parks
Business Housing – This category is what most folks think of when they hear Commercial Real Estate but when I thought about it, everything here was really just housing different types of businesses.
- Office Buildings
- Medical Offices & Hospitals
- Strip Centers
- Restaurants & Bars
- Cell Phone Towers
- Hotels /Motels for people
- Pet Hotels
- Gas Stations
- Industrial & Manufacturing
- Mineral Rights
- Parking Lots & Garages
- Airports & now Spaceports!
- Farms & Ranches
- Sport & Entertainment
- Oil & Gas
What is that now? about 40 including the sub-sub-niches! And I couldn’t leave the following off ther list.
Auxillary/Ancillary Services – keep in mind that more money was made off the Gold Miners than what was made in actual gold mining! I believe real estate investing can very much be the same.
- Property Management
- Private Lender
- Hard Money Lender
- Conventional Lending
- Home Inspectors
- Title Companies
- CPA & Accounting Services
- Interior Designers
- Software Developers & Providers
- Insurance providers
- Escrow Services
- and tons more!
The point is that real estate is a huge industry with tons of niches for everyone. You can try to do everything and burn out fast or you can take a niche, learn it well as specialize. Just like medical professionals, those who specialize usually make much more than generalists.
At RICH, we want to help your journey into whatever niche you ultimately end up in. The value in the Community is that you will find someone in everyone of these niches. So while you may not be interested in mineral rights, someday you are going to come across a deal with them and you need to know someone who can help. We try to rotate topics throughout the year so that no matter when you join, you’re going to be exposed to different niches and you’ll get the basics quickly.
We look forward to helping you find your niche at RICH!