More on strategies

General Real Estate Investing
1

I saw the previous thread on strategies and wanted to piggyback a followup question. Is it wise to spend time learning about multiple strategies, or should I just focus on what I know I’m good at? I used to be a financial advisor, and we talked about “never leaving money on the table” meaning you should always have the knowledge or have a tool to solve a particular problem to take advantage of all your oppotunties. That philsophy leans toward being a well rounded professional individual. On the other hand, there is something to be said for being the best of the best in a particular niche, ie recognizing your weaknesses and focusing on your strengths. I believe our current educational system has put too much emphasis on being “well rounded” and has created a nation of average people.

I’m pretty good at buying and rehabbing properties, but I’ll admit that I don’t know much about sub2 or buying using LO. How do you find the balance between being so well-rounded that you’re average, and being so specialized that you “leave money on the table”?

2

I’ve talked to leaders before who say they don’t have to be an expert at everything; they just have to know where to get answers for what they don’t know and know where to get help. You don’t have to be an expert at every aspect of REI. Let others help you. Maybe one of your local Realtors is experienced in more creative ways to acquire properties.

3

The most successful real estate professionals I know have a diverse and broad set of skills they apply as the markets change. If you were only skilled at flipping pre-construction condos in Miami using neg-am loans to investors, I would not be surprised if your profits are down a bit this year. How many brokers do you know who were dieing on the vine financing SFH’s, and are now offering loan mitigation services? How easily could you fix and flip REO’s in 2005, compared to now. Do you think hard money lenders are doing better now that credit has dried up or 4 years ago when the banks were practically giving away free money?

I’m not suggesting you have to be a jack of every trade, but broad abilities enable you to maximize opportunities in varied markets, not just those that favor your skill set. This is not about “focusing on your strengths” or being the “best of the best.” That’s about ego.

The market doesn’t care what you’re good at.

4

When I started investing in real estate in 1980 I had no idea about various strategies let alone the mechanics of specific investment types.

My folks were big on real estate investing, one was a broker and one a developer, so I had a huge support group from the get go and my parents were my mentors and already had 20 years of investing experience.

As time went on my dad was big on getting education in real estate, we would catch every seminar or convention we could go to, just to learn that one or two things, I at least did not know.

My first property deal was on a 7 unit property in California, I took over the property sub2 and held and serviced it for almost 3 years, putting time into fixing and repairing things and increasing equity.

By the time I sold it, it was not my only property, but I had learned a lot and I made almost $100k on the deal, it was enough to know real estate was very lucrative, and I have continued to learn new things every day, from that point forward, knowledge is a key to success.

That does not mean I at least made money on every deal, I did not as I have lost a little money from time to time, but for the most part have done real well in real estate investing.

In 29 years I have bought and sold over 400 properties and have been involved as a percentage partner in probable another couple hundred properties. I have invested in over half of US states following growth curves and economic factors.

I have a professional background in Construction Management so rehabs and fix & flips are right up my alley, we produce some of the most pristine properties from garbage properties, we know the proper materials and finishes for the price point, and pay attention to market trends.

You don’t have to be an expert, but you need some understanding as to whats possible in the specific circumstances and with the needs of the situation, so you can make money in any potential property.

This does not mean all properties are a deal, quite the contrary, but knowledge affords discernment and ability to know how the numbers work and what’s possible in that situation.

You have to know a little to know whether your expert is leading you the right direction and giving you the right advice, and how or whether or not to use the information and of course when to use it.

These area’s of real estate investing are benificial to long term success!

  1. Property Management & Positive Cash Flow

2.Rehabing & Remodeling (Fix & Flips)

  1. Creative Finance

  2. Tax Strategies & Asset Protection

  3. Wholesale Buying & Selling

  4. Mortgages & Discounted Notes

  5. Foreclosures & Short Sales

  6. Recreational Vehicles & Manufactured Homes

  7. Leases & Options and Subject 2’s

  8. Tax Liens, Deeds & Tax Sales Auctions

  9. Multi-Residential Commercial Properties

  10. Retail & Office Commercial Properties

  11. Industrial & Manufacturing

  12. Hotel & Motel Properties

  13. Passive Investing & Self Directed IRA’s

  14. Land Development

  15. Real Estate Development

  16. Patio Homes, Condo’s & Townhomes

  17. Marketing & Advertising

  18. Due Diligence

These are good examples of area’s of expertise that are specific to the type or method of investment and are all beneficial to you.

Just learn what you can each year and you will one day look back and realize you have come a long way. Keep using what works for you and keep learning all you can as you go along.

Just keep learning and moving forward!

                                 GR