By Fuquan Bilal
It’s always smart to keep expanding your horizons and investment portfolio. What are some of the new real estate investing niches and sectors you may want to explore this year?
Whether you’ve been flipping houses or investing in residential mortgage notes, this could be a good year to get ahead of the curve and find more opportunities in new fields. Competition is likely to be heavy this year as more investors hunt for deals, and many desperately look to move into real estate as their cryptocurrency and stock market holdings take a beating. Here are some ideas you might want to look into…
Multifamily Property & Notes
Many real estate investors have been moving up from single family homes to multifamily apartments over the last year. There can still be competition in this space as big funds look for yields, but there can be exceptional opportunities to acquire distressed deals, non-performing notes, and unlock a lot of value with improvements and superior asset management.
Owner-Occupied Commercial Mortgage Notes
This is likely the most underutilized niche within the note investing space. Some banks are wary of making these loans versus those that are made for pure investment, and many investors don’t know how to work them out effectively. Yet, this also means the opportunity for greater discounts with less competition. These are loans on commercial property, in which the borrower is using all or a part of the premises for their own business. This could include multifamily apartments, boutique hotels, retail, and mixed use properties.
Business debt is a growing space which has seen more originations in the last few years. It can offer high yields, affluent borrowers, and may be collateralized by real estate, equipment, income streams, and other assets.
Seller Financed Notes
Those who really know the market and are more tuned in to what is going on behind the scenes know that a free ride and slew of easy home loan programs may not be on their way as soon as many hoped. In fact, it could continue to be harder for many hopeful homebuyers to get loans. Offering seller financing is a great way to serve the marketplace and fill a void, while creating more liquid note assets, and moving real property at premium prices.
For busy professionals who just want the safety of real estate and mortgage debt, as well as the yields it can provide, without having to learn how to do it all themselves, there are progressive funds like the NNG Capital Fund which provides access to a variety of real estate investment strategies in one passive income producing investment.
Find out more about investing in secured debt and real estate, go to NNG Capital Fund