Ultra-Niche Passive Real Estate Investments That Pay Ultra-Returns

Hokey rhymes aside, it’s true. Here are a few examples of deep niche investments we’ve made in the Co-Investing Club, which come with high potential returns.

Property Tax Abatements

In exchange for setting aside some or all of the units in an apartment building for affordable housing, the operator gets a 50-100% break on property taxes.

When done right, this creates an instant jump in net operating income (NOI) and property value.

In other words, they add value to the property without having to do any renovations at all. Read: no construction risk or delays. Pretty sweet, right?

Setting aside units for affordable housing often doesn’t even restrict rents. In many cases, the units are already renting to moderate-income residents.  

We’ve invested in several of these together in the Co-Investing Club, and already seeing strong returns on them.

Mid-Range Land Flips

Sure, there are high margins on cheap land flips. But it can be a lot of work to earn a few thousand bucks, and there’s growing competition.

On the opposite end of the spectrum, high-dollar land parcels face competition from institutional investors, and lower margins to boot.

The sweet spot lies in the middle, for parcels priced $25K-$250K.

Last year, the Co-Investing Club invested with a land flipper who targets this zone. And we’ve been collecting 16% distributions like clockwork ever since.

We hope to invest with him again over the next month or two.  

Prefab Home Placements

Another land investor we partnered with earlier this year has his own spin: he installs manufactured or modular homes on land parcels and sells them to first-time homebuyers.

In the market where he operates, the median home sells for $460,000. But he manages to price his homes at $230,000.

Even in a recession, homebuyers will still line up for homes selling for half the local median. We love it.