Whether you are just starting to dip your toes into the ocean that is real estate, or are free diving in the great blue yonder, you need to be aware of the rules that govern your ability to maximize your success. You have most likely heard that there are countless ways to become profitable within the huge genre that is real estate; if so, then You’re right!
Some people like myself stumble into a niche they love, and are great at from the start of their career, while others may fail in real estate before ever truly finding what inspires them to kick butt and take no prisoners.
Here are some tips to help you narrow down the search to find what is right for you.
- Keep the end in mind: Sit down and make a list. A list of your short and long term “financial” goals, your skills, your abilities and your limitations. Do you desire steady residual cash-flow? Do you need to make cash right now? Do you have starting capital? Are you handy with a hammer? Are you a good leader? Manager? Negotiator? Like I described in my last post, “What will you do for success in Real Estate”, know what you are willing to do and not do to reach your goals.
- Explore your options: Mobile homes, wholesale, retail, lease options, REOs, fast turning, rehabbing, commercial investing, short sales, loan modifications, Realtor, buy and hold, multifamily, foreclosure, land development, pre-foreclosure, note buying/selling, etc. Spend a short time going through this list, learning about each and deciding if the vehicle in question will get you to your real estate goals AND make you happy in the process.
- Have lunch with an expert: One of the best recommendations I can make is for anyone in real estate that is currently unhappy or not as productive as they would like to be, to take a “mentor” out to lunch. In my first week investing, I took five knowledgeable investors who were not trying to sell me some course, out for lunch to pick their brains. These meetings gave me insight to the game, that has carried me through to this day.
- Don’t spread yourself too thin: I know that I am not the only one that has ever piled too much on to his/her plate. Over committing to too many deals at one time (on more than one occasion) has almost cost me my entire bank roll. Unless you have completed more than 15-20 transactions, it will be wise to complete one deal, get it cash-flowing, then move onto the next.
Choose just a few areas of real estate that interest you, and run with them. Market for your targeted properties and keep to your game plan. Do not stop marketing after you are committed to a propertyl; if and when you find a great deal, but are too busy to act on it simply wholesale the deal for fast cash. It is far better to make a smaller wholesaling fee and continue investing profitably, than to bite off more than you can chew and go far over budget.
- Become an expert: Becoming an expert is really a never ending process, but when you find a niche or specialty in real estate, dominate it! Become the best investor in your town within your desired field. Be the expert that people are asking for advice and the name that everyone thinks of when they think of your niche.
Always remember that your end goals and desires may continuously change. Be open to new ideas, what may sound like a terrible investment strategy may just turn out to be a great money maker. Keep in mind you are your own person, what works for someone else may not be your cup of tea. Find what you want (money goals), what suites you (i.e. mobile homes) and kill it!
– J. Fed