Hey, everybody. So today I'm going to talk to you about six real estate
opportunities that you're
probably missing, and these are things that I'm doing right now.
They're not single family. They're not multifamily.
They're kind of a little bit different.
So a lot of times we spend time focusing on real estate
as it pertains to just housing.
Well, that's certainly a huge part of the real estate market.
You may not know that there are lots of ways to invest in real estate,
have nothing to do with houses or apartments.
These six types of real estate investments
are what I call sleeper real estate.
There is absolutely money to be made in these areas
that a lot of people wouldn't even ever consider before we get into it.
Just a reminder to be sure to like subscribe and sign up
for our notifications so you won't ever miss our future videos
or our live streams.
Let's look at the first type of secret real estate where the demand
is very, very much alive. In fact,
you're actually using this real estate right now by watching this video.
I'm talking about data centers in order for you to watch this video.
There needs to be huge servers, and those are housed in data centers.
Now, data centers are generally big, boxy and nondescript, but there are attractive
real estate because they're essential on how we live these days. And guess what?
Very few tenants data centers are primed
to set to grow records this year, according to the new report
from the commercial real estate giant and company CBRE.
As this chart shows, they've been building them
in leaps and bounds throughout the United States.
Getting your own data center up and running could cost you millions. However,
they cost about a thousand dollars per square foot to get up and running.
And that doesn't include the cost of
installing the fiber optic cable or energy expenses.
Even if you don't have the startup capital, there are a handful
of data center real estate investment trusts.
And they were the highest performing REIT sector in all of 2020.
With a 21% increase in the value.
So keep your eye on data centers in the future.
The second one are billboards.
Now, I've talked a lot about billboards.
As you guys know, I just sold one to Clear Channel that I bought for really cheap.
I made a million bucks.
So here's another real estate option that you'll never see every day,
but probably have never thought of as real estate.
I'm talking again about billboards.
So when you own a billboard, your tenants are the advertisers who pay
you to put up their ads in their space.
And if they're digital.
Guess what? You never even have to visit.
It's like throwing a digital graphic or digital video up to a flat screen
TV somewhere else, even though it's not the most cutting edge form of advertising.
Billboards are tremendously attractive to its advertisers.
That's because it's the least expensive way to reach people per impression.
As this graph shows, there are a couple different ways to go about this.
A real estate investor could buy the entire plot where a billboard sits
or just buy an easement on a larger property with grants
you the license or the right to access that particular billboard.
Another option is purchasing a long term lease for the land and the billboard.
I've owned many billboards over the years, but one in downtown Phenix
and another one in a rural hour outside that city have very different cash flows.
So I bought the first billboard with my partner Ross
for about two hundred seventy five thousand dollars.
And it's across from Bank one
Ballpark Stadium, which is where the Diamondbacks play.
This was located in a densely populated area.
So we only bought the billboard itself.
It's two sided or they call static.
So we put ads on each side and we charge a couple thousand per side.
So we're making about four thousand a month. Gross.
The other billboard I own is in a more rural area.
So I bought the plot of land, the whole land where the billboard is.
And then I decided to sell the land, except for the easement
where the billboard sits. So I bought the land,
put an easement around the billboard, and then sold the land.
So now I'm in the billboard for free.
So I'm still hanging on the billboard.
But I sold the land, which I bought for about 290, and I'll continue
to earn about thirty thousand a year net a year from just that one billboard.
There's a wide price range for buying a billboard,
and it's almost entirely influenced by its location.
So think about a freeway or a rural area are going
to be very differently priced marinas.
One thing they can't build more of is coastline.
People who own boats always need a place to dock their boat.
And you can cash in on that by buying marina space.
The location of your slip, as well as the type of amenities
in the dock area, are all going to factor in to what
you'll have to pay for at purchase and what you'll be able to charge.
I personally owned a boat slip where I keep my boat and my jet skis,
and there's all kinds of different prices and ranges based on location.
When you're buying a dock slip, you will be charged by the foot.
Now, home advisor reports
the average pier is about one hundred dollars per linear foot,
which works out to be about fifteen to forty dollars per square foot.
Permit docks with higher end materials and construction
can cost between 50 and seventy five thousand dollars.
A boat slip is effectively property.
You'll have to pay real estate taxes and closing fees.
The marina will have monthly dues
for services similar to a homeowner's association.
And you'll also be responsible for assessments like capital expenses.
Now, according to the website Home Advisor, it can cost anywhere from one
hundred and fifty to a thousand dollars a month to dock a boat with this in mind.
Most experts agree that the best return on an investment
will come if you plan on owning your slip for seven to 20 years.
Now, I personally have on my slip for not quite 10 years, and my annual fee
to have that one boat slip is less than a thousand dollars a year.
But the best part about that is on the years that I haven't used it,
I've been charging two to four thousand dollars a year in rent. Cell towers.
So we've talked about this before.
But if you're interested in a cell tower, first, you need to check
if the zoning for your property will allow a cell tower on the premises.
Now, we've been looking at this for both our multifamily
and our self-storage is now while cell towers are certainly in demand.
There are particular requirements that cell companies look for.
In other words, even if you feel that your land would be perfect
for a cell tower, you can't persuade a wireless carrier
to build a tower on your land unless it fits into their network
infrastructure plans.
If you don't have the only parcel
within a half mile or more that is suitable for a tower,
you may wish to use your property for something else.
In situations like that, a wireless carrier will simply lease
space from your neighbor or negotiate a lower lease rate with you.
So unlike with residential real estate,
you need to make sure that you're the only option in the area.
While this is a pretty niche investment, the payoff can make it worth it
in the long run.
Here is what the average rent is for a cell tower
and the 10 most populous states, RV parks.
Now, a lot of people just fly right by these as investments,
but Covid and the pandemic totally change this industry.
So if you had one before, you're very happy,
because now there are waiting lists to get in these things.
So even if you don't own an RV park,
investing in an RV park can be a lucrative financial decision.
As more Americans more than ever buy RVs, RV parks will only continue
to see increased reservations and rents and profits in the coming years.
RV sales hit sales records in 2020
and projections show that number is going to increase in twenty twenty one.
This chart shows how much higher demand was in twenty
twenty versus twenty nineteen.
Some of these RV owners will continue to make their family vacations in their RVs.
Some even say that they're considering moving into their RV full time
because of the financial reasons or to experience more of the world.
RV parks historically have had excellent returns on investment rates.
Now, generally, RV parks offer a higher ROI or return on investment
than most other types of commercial real estate properties.
According to most sources, you can expect anywhere from 10 percent to 20 percent
return on your initial RV park investing, assuming it's well managed.
As a result, investors who are hoping to maximize their investment dollars
should definitely consider RV park investments a lucrative option.
The sixth one is industrial real estate.
Now, the cat is obviously out of the bag here while the housing market
has been grabbing all the headlines.
This market is obviously another real estate market
that's been taking off like crazy.
So industrial real estate has been experiencing unprecedented demand.
There's still continue to grow.
The need for e commerce fulfillment centers was
well in motion way before twenty twenty.
Amazon had already introduced the next day
and even same day delivery for its prime members.
Meanwhile, major retailers such as Wal-Mart and Best Buy,
you remember those
were buying as much fulfillment space as possible to meet their demand.
So once the pandemic hit, retailers
entered a level of even greater demand for that space,
with newer types of retailers entering the fray, such as grocery stores.
This is going to be an incredible, incredible real estate play in the future.
As this graph shows, e-commerce sales drop dramatically in twenty twenty
and are only expected to be slightly lower in twenty twenty one
while demand was escalating.
The pandemic also exposed the fragility of the global supply chains.
Facilities in China and elsewhere had to close down,
which created shortages of consumer goods stateside.
So realtors responded by securing more and more storage
space to help stave off future shortages.
The real estate firm CBRE said that almost 100 million square
feet of industrial space was absorbed in the first quarter of twenty
twenty one alone, and that a record three hundred seventy
six million square feet is under construction right now.
Rents for industrial space rose about seven percent from the same period
a year over year to an all time
high of eight dollars and forty four cents per square foot in some cases.
I'm seeing well over ten dollars a foot.
So the experts anticipate that there will be a need
for an additional one hundred and thirty five to one hundred and fifty million
square feet every year in order to meet a growing e-commerce demand.
So those folks are some of the less conventional types
of real estate where you can still make some very good passive income.
If you have any experience with any of the off beaten path
investments, please tell us about it in the comments below.
As always, guys, thank you again for listening.
I love your support. I appreciate you all. And we'll see you next time.