Is it wise to try out different strategies as a new investor?

Question

I am a new investor. I have my first STR bought 5 months ago and it's doing pretty well. I self manage. I know it's important to choose your strategy before investing and stick to it since after your first buy you get experience that will help you in the future.

But I am thinking why not to try different strategies to "feel the water" and have a diversified experience. Right now I am looking at buying a foreclosure with the help of an experienced agent at the beginning of 2021 and making a flip.

Does it make sense for the new investor to try different types of investment or would you stick to the strategy you already know a little bit for your second real estate investment?

Thank you)

Elena A Matvienko · Answer

@Joe Villeneuve

Thank you! Was exactly my thought. But I know some people say - you need to master at least one strategy to feel confident in real estate investing and later move on to another.

Thanks again for your input!

Joe Splitrock · Answer

Nothing wrong with trying different things, but there is also power in specializing in one thing. Most of the best businesses in the world started in one business and ended up in a different business, because they followed opportunity.

Theresa Harris · Answer

I don't think there is anything wrong with trying something different as long as you know what you are doing and don't overextend yourself.

Elena A Matvienko · Answer

@Fernan Nava

Thank you! Totally makes sense!

Fernan Nava · Answer

Hello Elena, since you are just starting what you are doing is fine and dandy. Exploring different strategies will indeed widen your knowledge of the business. I think that as you progress you will find that you like one strategy better the the others. When that time comes, focusing on an strategy will significantly elevate your game, not that you have to stay in one strategy forever. However, I think is better to work on a strategy at a time until you master it than move on to something else if you wish. Good luck to you.

Joe Villeneuve · Answer

Don't fall into the trap of being a "one trick pony".  There are no advantages of learning one strategy and sticking to it.  That makes no sense, worse it makes less dollars.  Why would you restrict yourself to only one type of opportunity?

The more strategies you can learn the better.  The faster you learn them, much better.