Practicing Opportunity Identification

Isaiah Miller

UFID: 80191457

Identifying Local Opportunities

5/26/2020

1. The first opportunity I found was the opportunity to lease-option your home instead of selling it.  Although residential real estate demand remains steady, supply has tightened because people have decided it is a bad time to sell their home (uncertainty in market, don't want people in their home, etc.).  Although there are still buyers out there, many lenders have drastically tightened their lending guidelines, and so it is much harder to get a desirable mortgage.  I learned this information from local realtors, and also from reading about banks lending guidelines.  For this reason, the market seems ripe to lease-option or 'rent-to-own' your home.  Because demand is still there, but loans are harder to get, a seller can set up a desirable option for buyers, while also making money through a down-payment, cash flow for the time being, without shouldering the responsibility of renting the home in a traditional fashion.  Rent-to-owners usually take on repairs and maintenance themselves since they are now an 'owner-to-be.'  The prototypical customer of this opportunity is those that want to sell their home, but are worried that potential buyers won't be able to find lending.  The opportunity is relatively easy, as connecting the customer with a knowledgeable realtor that knows how to execute a lease-option could easily do it.  

I saw this opportunity because I have interest in real estate, and have considered lease-optioning my home.  I think that instead of renting it out, I will opt for a rent-to-own when I decide to move out. The tenants are generally more responsible and it usually yields more return. Most of the time, the tenants don't even executing their option to buy.  I think that I saw this opportunity because I already had an understanding of this strategy.

2.  The second opportunity I found is building a portfolio of hospitality businesses, like restaurants, bars, and hotels.  With these types of businesses bleeding cash, the owners are facing serious pressure not only to survive for themselves, but also for their staff.  This presents the opportunity to owner-finance businesses to a new buyer, especially if the buyer can work out an agreement with the seller that they will foot certain costs for the coming months, and retain staff.  This would allow a potential buyer without enough money to outright buy the business to finance it with preferred terms as long as they have enough cash to survive the coming year.  The prototypical customer is an entrepreneur, or someone trying to own their own business and that has money to spend.  This opportunity is somewhat difficult, because it would require sales, accounting, and legal skills.  

I saw this opportunity because I have also looked at creative ways to purchase existing companies.  Usually the seller needs to be motivated to get a good deal in any transaction, and the motivation in this instance is to escape the pain the coronavirus has created.  With business owners scared right now, if you could offer them an exit where they could feel good about the business' future, I believe there are very good deals to be had.

3.  The third opportunity is telehealth.  I have seen a variety of advertisements on social media for virtual therapy meetings, including psychiatry.  I explored these further, and found that due to the coronavirus, mental health providers can temporarily offer virtual services, including prescribing over the computer.  This opportunity exists for any healthcare provider trying to expand their clientele. The most likely customer for this opportunity is healthcare providers that are struggling. They can sign up on these platforms and schedule virtual calls, and some of the platforms take insurance, too.  

I saw this opportunity because I had interest in the ad I saw because I never knew healthcare providers could do virtual calls and write prescriptions online.  I researched it more and found that recent regulations allow it, so those looking to grow their business could capitalize on it.

4.  The last opportunity is fun.  It is a 'drink' truck instead of a food truck.  In Jacksonville, restaurants are temporarily allowed to serve alcoholic beverages as takeout, as long as there is a little piece of tape over the straw hole.  If I saw a 'drink' truck, I might even stop just to check it out.  Apparently, drink sales have been a popular takeout item, which is why I think there would be some demand for this. Because it is a temporary regulation, I believe it would be savvy only for those with a regular food truck.  Buying a truck for this sole purpose would be shortsighted, but if you already have a food truck, why not add drinks? There are the highest margin item in a restaurant.  That is why existing food trucks would be the prototypical customer.  The opportunity would be relatively difficult unless the restaurant already has a liquor license.  I am not sure if this is still in effect, as I know some tours in Savannah serve alcohol, but if it wouldn't be too expensive or difficult, a temporary permit might be worth it. 

I believe I saw this opportunity because I got takeout during this pandemic and was offered a drink. I was shocked.  Food trucks have also been coming to my neighborhood, and have been packed with customers!