By Meghan Belnap
It's no secret that savvy investors can become millionaires in real estate. With the right strategy, a good investor will always find a way to turn a profit on a property deal. Sometimes it's a matter of how to monetize a property to make it worth more on the flip.
Related: How to Choose an Investment Property
At other times, it's about making the property rake in money for the owner while holding it for the long term. Eventually, investors want to kick their game up to the next level with higher value investment properties. Here are some things real estate investors should know about finding these lucrative deals:
Buy Near Top-Rated Schools
What parent would not spend extra money to purchase a home near a top-rated school? Properties in these kinds of neighborhoods are even more value driven if there's low crime and the local economy supports higher than average wage earnings. For investment purposes, homes in these kinds of neighborhoods tend to fetch both higher rates of rental income, as well as higher resale values during uptrends in the real estate market.
Looking Into Waterfront Property
One area where real estate gets more interesting and the price goes up has to do with waterfront homes. Homes situated on land bordering lakes, bays and rivers tend to command more value compared to homes that have no access to a waterway. Plus, these properties appeal to a certain type of buyer—especially those who like fishing, boating and other water activities.
Clever Probate Deals
In a state like Florida, where there's a large elderly population, it's common for expensive homes to find their way on the probate market. Sometimes the only person you need to deal with is the executor of the estate to turn a fantastic profit on a probate investment. It's important to keep an eye on the latest obituary listings to find these kinds of high value opportunities that most investors overlook. At other times, the property of a deceased individual is willed to someone who lives out of state and simply does not want the hassle. These individuals are often highly motivated to sell a valuable property for pennies on the dollar to just get it out of their name and into someone else's portfolio.
When it comes to high value real estate, it often doesn't get more high value than dealing in commercial properties. From massive warehouses to acres of apartment buildings, the sky is pretty much the limit. A savvy investor can really clean up in commercial real estate because it's often possible to talk a seller down by considerable amounts to get the right deal. It's important to remember that class-B real estate deals tend to have the most room to work with when it comes to making changes that increase the overall market value of a commercial property.
When it comes to investing in high value real estate, it's generally best to specialize in a particular niche. The reason is because more expensive properties tend to require more specialized knowledge to smoothly work deals. Knowing the ins and outs of a given niche is what makes the truly successful investors able to work deals from a perspective of mastery, instead of losing money because of mistakes being made out of a lack of familiarity with how a certain type of property should be approached and transacted.
Meghan Belnap is a freelance writer who enjoys spending time with her family. She finds happiness in researching new topics that help expand her horizons. Looking to purchase a waterfront home? Belnap recommends working with Real Estate One.