Melvin Feller MA Discussed the Divide and Conquer Aspect of Real Estate Investing
Melvin Feller MA Discussed the Divide and Conquer Aspect of Real Estate Investing
Melvin Feller is known as “The Entrepreneur’s Mentor” because Melvin walks his talk. Melvin Feller has been there and done that and more importantly, Melvin Feller knows how to transfer the skill set for success. This is main reason that he has been the sought after coach to hundreds of small business owners, entrepreneurs, Realtors, Real estate investors and service professional internationally. Melvin Feller’s main talent is to show you how the step by step process to build and enjoy a successful 6-figure plus business while having a balanced life. Melvin Feller maintains an office in Texas. Melvin Feller is currently pursuing another graduate degree as an MBA.
Are you in different to the different sectors within your real estate market? New real estate investors often start without a plan or system. They are simply looking to buy real estate from a motivated seller. You should be concerned about the market demand for that particular type property (sector). Each sector has its own unique qualities and the demand varies for each one. While your overall real estate market could be hot, a particular sector of your market could suffer from a diminishing demand for several reasons. Get to know each sector within your market.
The better understanding you have of each sector will better prepare you for seizing the right opportunity. Even experienced investors will often lump their market into two categories — residential and commercial. In order to understand each sector you should break it down further. Individual sectors can often soften because of government regulations, new construction, economic downturn and job loss in the area, and even rumors while others remain strong.
Let me show you how to break down a market into several different sectors. Remember, each market may have sectors that do not exist in other areas. For example, a coastal city will have resort or tourist properties and even those can be broken down further.
- Condominiums
- Fee-simple multifamily
- Townhomes
- Single-family
- Mobile homes with land
- Mobile Homes in campgrounds
- Modular Homes
- Waterfront
- Water view
- Timeshare
Do not evaluate and determine the status of the resort market as a whole. Evaluate each sector separately from the other in order to determine the current and future demand. See the following example
EXAMPLE: Imagine a condominium market becomes saturated and the demand drops. Does this result in the other sectors softening in the same market. Not necessarily. The other sectors of that market could maintain momentum even though the condo market has stalled.
Let us continue with the same city. Now you want to determine the demand of the long-term rental market for locals. Is that alone one sector? It would seem that the rental market is just one sector of the residential sector… right.
Wrong!
Your residential rental market could be composed of
- Single-Family Homes
- Townhomes/Garden Homes
- Large Middle-class Multifamily
- Large Lower-income Multifamily
- Mobile Home Parks
- Mobile Homes with Land
- Small Apartments 2 to 8 units
- Condominiums
Plenty of mistakes can be made when investors or developers ignore the above and evaluate a sector along with the whole market. One market that I am in has a soft town home market and another is saturated with apartments, which drives the rents down. Some apartment buildings were foreclosed on in that market as a result. Is it time to buy you ask? I might agree except new apartment buildings are still being built! That is why they only get $1250 a month for a three-bedroom apartment! With that said, the single-family home rental market is strong, low-income and middle-class. So trying to judge this rental market by the apartment sector alone would be a mistake.
Therefore, the lesson is, do not judge an entire market or sector by comparing it to another sector. Study each sector and evaluate each one on its own merit.
Melvin Feller MA is in Texas and in Oklahoma. Melvin Feller founded Melvin Feller Business Group and Melvin Feller Ministries in the 1970s to help individuals and organizations achieve their specific Victory. Victory as defined by the individual or organization are achieving strategic objectives, exceeding goals, getting results or desired outcomes and a positive outreach with grace and as a ministries. He has extensive experience assisting businesses achieve top and bottom line results. He has broad practical experience creating WINNERS in many organizations and industries. He has hands-on experience in executive leadership, operations, logistics, sales, program management, organizational development, training, and customer service. He has coached teams to achieve results in strategic planning, business development, organizational design, sales, and customer response and business process improvement. He has prepared and presented many workshops nationally and internationally.
