[b]As far as being a Real Estate Investor . .
Is it better to specialize in one niche or is it better to know a little of many different types of investing?
Why do you think so.[/b]
Good question. If you know and are successful with one type of investing, why not play to your strength? If you are knowledgable in many areas you can recognize a deal and make money in different types of investing. I don’t think either is beter or worse, just depends on what you want.
I’m kind of a hybrid guy. I have found my best success when I have specialized - rehabbing and landlording for the most part. When you specialize you become “known” - get a lot of contacts as a “doer” not a “talker” and deals end up popping out at you. However, a lot of deals can come your way that aren’t what you normally do. So it is wise to have enough knowledge - and contacts - so that you can take advantage of the profitable deals as they come - or else wholesale them out to other investors who specialize in that type of deal.
Depends where you are in your investing experience.
If you are just starting out, specialize in a niche. Become an expert in that niche. As you become more experienced, you may wish to broaden your investing to another niche at which you can then become an expert.
I say start with a single niche, evolve to incorporate other investing techniques or market segments as you gain experience and comfort.
Great question to ponder.
I find it difficult to get excited about other types of deals even though I know how to do them… And the presentation is so different so for me I like staying with one type of investment strategy and forget the others. Sure maybe I am leaving deals on the proverbial table but you can’t buy everything…
Michael Quarles
My opinion: if you specialize, you can get really good at what you do.
However, I’m hanging out here, learning what others are doing, just in case a really good deal comes along that suits a different style of real estate investing. There is no good reason to refuse large amounts of money that someone is trying to thrust into your hands.
But you have to know enough to reccognize the deal that is being offered ro you.
One thing about doing different styles of investing is that they require different grapevines. It’s a big project to maintain more than one network.
I come from the school of thought that you have to have 1 thing that you are the best at. No doubt about it though that you have to have an understanding of different types of investing or whatever it is that you’re doing.
Let me use #23 as an analogy. When he came into the NBA he was the best dunker in the league. As his career grew he began to focus on other aspects of his game such as defense, his jump shot, etc, all the while still being able to jump out of the building. Eventually he perfected these other aspects of the sport and was able to not have to rely on his ability to out jump everyone. I think the 6 NBA titles speak for themselves.
I suppose what I’m trying to relate is that it is my belief that if you’re going to do something you have to be the absolute best at it. Once you’ve done that, move on to the next thing. If will certainly provide you with a new challenge and simultaneously keep one from becoming bored with what they’re doing.
I think that people tend to remember the realtor that specializes in a particular type real estate.
So I say specialize in your niche and make everyone aware of what it is.
Specialize is the way to go.
In this area in Georgia certain people are associated with certain areas coastal communities, certain people are associated with luxury homes and some with commercial properties. That is great for them because when people are ready to sell or move they call them first.
I ask myself a similar question often. I am a wheat farmer. About ten years ago I started a registered Angus cattle business. I am now starting a home building business while my brothers( partners ) run most of the other businesses. I am also looking for assets to invest the profits from the businesses into to generate more income ( passive ), so I am also an investor which is a basically a whole other business. Sometimes it spreads me thin and I wonder if I should just take something and focus on it. But I like the challenge of taking a business from not knowing anything to being profitable to being able to get things systemized and stabilized so I can move on. Maybe I need to specialize in business building?
Bill Gates didn’t get to where he is by focusing on being the best programmer there is, he moved up the chain and learned different sets of abilities as he went.
my 2 cents,
DB
I used to play football. The first play of the game is to hand the ball to the fullback while he runs right up the middle. If nobody stops him then you run that play again. You run the same play until they make you do something else. If every time you run the same play you get 5 or 10 yards or more you would never run another play again. But reality is that if you are going to move at a snail’s pace you can do the same thing over and over. If you move faster you may have to adapt to the deal you are presented with.
Does ‘Jack of all trades, master of none’ ring a bell to anyone?
I’ve found that, especially when starting off, it has been best for me to specialize in one area. When I start looking at other investment strategies it would just confuse me further and I would come down with ‘analysis paralysis syndrome’ and not do ANY of the strategies. Now I focus on one and if a deal comes through that I don’t ‘specialize’ in I refer it to another investor.
Works for me but to each his own. :beer
You do need to have a basic understanding about most everything, but you need to specialize in something. If you don’t define your goals, it is harder to realize them.
I just read each post and as “Richard Dawson” on the Old Family Fued use to say:
Survey Says:
Specialize
Some great insight into investors minds here, I love it. :beer
I’ve thought some more about this and I think it is somewhat personality driven. Many people like to learn something real well and then they relish doing it the rest of their life. Some of us (maybe its the euntrepeneur in us) just can’t sit still once we have figured something out, and are off to the next thing. I am not arguing that it is better, just the way we are wired. In my case, each change has been a step into a business with more potential and. I started out as a farm hand, I loved it and still enjoy the things that I learned to do with my hands, but the upside potential capped out in such a low margin industry.
I think for me it comes down to “specializing” in mastering new things, because otherwise I would always be wondering, “what if”.
DB
If you can learn one thing well. You can move into another area. On the other hand you may be forced to learn another area sooner than you may want because the opprtunities are drying up in the one you’re in. I hope that was “middle of the road” for ya’! :rolleyes :beer