Real Estate Consultant · Philadelphia · Member since 2020 · 6 posts · 1 vote
I work with many investors, some of which are stringent in their buying criteria (area, exit strategy, etc.). I am inquiring if there's a specific event, amount of experience or capital that made investors expand their criteria or become less specific in their boundaries. I understand starting with distinct criteria to start your investment journey, but wondering what it took for that to change (if it ever did). Since it is about returns at the end of the day, I'm interested to pick the brain of the Bigger Pocket community to see the evolution of this aspect of investing. Thank you in advance for any insight.
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
6y
Criteria are usually formed around a person's goals. They should be flexible as the market changes and economic conditions evolve, what works one year in one market may not in the next. That said, the investor can thrive and be very successful, consistently, for the long-term by staying in their lane and doing a specific type of investing very well. Niching down to what the investor is good at, helps focus and drive clarity for their team and their money partners.
Real Estate Consultant · Philadelphia · Member since 2020 · 6 posts · 1 vote
6y
Hey Joseph, thank you for your response. I hear your point that staying specific can be beneficial and finding your niche is better than venturing outside of it and increasing risk. I also agree that having a direct plan is more manageable if the investor has an entire team or operation, will think more in this lens going forward.
I work with many investors, some of which are stringent in their buying criteria (area, exit strategy, etc.). I am inquiring if there's a specific event, amount of experience or capital that made investors expand their criteria or become less specific in their boundaries. I understand starting with distinct criteria to start your investment journey, but wondering what it took for that to change (if it ever did). Since it is about returns at the end of the day, I'm interested to pick the brain of the Bigger Pocket community to see the evolution of this aspect of investing. Thank you in advance for any insight.
Hola Julia, I think investors redefine their purchasing criteria as they gather experience, and also adjust the risk of their real estate portfolios, or diversify investing in different locations.