You might be one of the thousands of investors living in a high-end real estate market witnessing the success of fellow investors all around you, but you are frustrated that the barrier to entry is preventing you from jumping on the investment bandwagon. Investment opportunities are well beyond your financial means and you are growing frustrated.
There is hope! There are several ways in which you could creatively and successfully invest: raise private funds, form a partnership, consider wholesaling options or go after properties that do not require large start-up costs. While some properties are not worth the effort, you have to pinpoint that which “works” in your zip code before you blacklist your entire city. Has your town experienced success with condo conversions, multifamily properties, or low-income housing subsidization? Strive to build a profitable investment strategy around the endeavors which excel in your pricey town and connect with fellow investors in order to learn the secrets to their success.
Almost every city contains “pockets” of lower-priced neighborhoods within a 20-40 mile radius outside of the city. Consult with an experienced investment realtor about exploring options in surrounding, more suburban areas in which you would like to invest. Middle-class neighborhoods often offer many sound investment opportunities at a fraction of the price for inner-city investments.
In the event that there are no good opportunities to be had, ask your realtor to help you locate some long-distance investment opportunities. Experienced realtors will be in it for the long haul in order to help you succeed with your business plan.