In this episode, I want to address a tendency that I see in new real estate investors. It’s the tendency to try to overcomplicate things. Some beginners try to learn everything about real estate (which is impossible to do, by the way), before they get out there and get going. This is a HUGE mistake, and one that you better avoid if you want to have any level of success in this business!
I recently had a conversation with someone who will be part of the second round of coaching students next month. He was asking me about various types of advanced real estate investing techniques. I told him that the biggest mistake he can make as a new investor is to try and get too fancy with this business.
In my next investor interview coming out this Monday, I interviewed a really smart and successful buy-and-hold investor named Dennis Fassett. We discussed a lot of different topics. One of the points we definitely agreed on was that we believe that new investors should focus on one aspect of the business and work hard to become an expert at that. You should keep your focus narrow until you achieve success in that one facet of real estate, then gradually, over time increase your circle to include other real estate investing techniques.
For example, if you choose to start out as a wholesaler (which might be the hardest one to start with), and you start getting some traction, you really should focus on growing that business until it is almost automatic, then maybe start working on your flipping business. By doing things this way, you can always fall back on your wholesaling business if you struggle early on in your flipping endeavors.
I have seen too many investors try to do everything all at once and fail at everything. There are way too many aspects of real estate to try and be an expert at them all. Besides, most of the really successful real estate investors that I have met over the years are highly skilled in only one small part of the business, but they do it better then everyone else!
Find your thing in real estate and do it better than everyone else!