The term “unicorn” has become ubiquitous of late. It’s used to describe an unattainable ideal in everything from dates to dot-com stocks.
And yet we chase these unicorns. Because, hey, why not?
Which got us thinking: What would a “unicorn” look like in the real estate world? Well, first off it would be a high-upside property that is selling for cheap. It would be low-maintenance, but enough work to keep the price down and lots of other buyers out of the bidding process. It might even be a pocket listing or something that hasn’t even made it to market that our network brings to our lap.
The best post we found on this phenomenon was from a young, first-time investor who does a great job chronicling his thought process on the blog at www.biggerpockets.com.They key here is that he was willing to not only purchase a property, but move in to it and manage it for a period of time, a commitment that is probably more risky for some (read those with families) than others. There are financial as well as practical reasons to think about doing this, the author explains:
Then there are REITS, which are something like a mutual fund for real estate investors. According to The Motley Fool, most of these programs are required to pay out 90 percent of income to shareholders, and they’re typically organized by category to manage risk – apartment complexes, data centers, commercial properties can all be had.
Why have just one unicorn when you can have a collection of them?