In this episode, I talk about the importance of keeping your focus narrow when starting out in real estate. The bright shiny object syndrome (letting every new technique for making money grab your attention) will stall you and make it difficult, if not impossible, to succeed!
Real estate can be a very sexy business to be in. If you look, you can find dozens of ways to make money and dozens of gurus trying to convince you that their way is the best. The problem is that if you don’t choose a technique or method of investing in real estate, you are doomed to chase bright shiny objects forever.
When I first decided that I was interested in real estate, I spent a lot of time on the internet reading different people’s websites about how to invest in real estate. I looked into wholesaling, flipping, buy-and-hold’s, lease options, notes, etc. All of these techniques seemed interesting and a great way to make a lot of money in real estate. The problem is that, with all of the information and all of the gurus telling me that their method of investing in real estate would make me rich without any experience, knowledge or money, I found it impossible to make a decision. Each method seemed to be the path to success. Looking back on it, each method probably had its merits and could have made me money had I decided to focus on it.
The style of investing that made the most sense to me was flipping. That was just a personal preference and quite honestly a decision I made because I knew that if I didn’t make a decision and focus, I would continue to spin my wheels. I could have just as easily pursued wholesaling or buy-and-hold properties. Wholesaling didn’t give me the payday that I was looking for, and buy-and-hold properties didn’t offer me the opportunity to make money quickly. That is certainly not to say that any other investing method is wrong, it was just wrong for me at the time. I have since done wholesale deals and. in focusing some energy this year, I buy-and-hold rentals. I can do that because I have been flipping properties for several years and know that I completely understand that aspect of my business. Once you feel that you have a very firm hold on a style of investing, it makes sense and is probably good to start expanding your business into other areas. That’s not to say that you cannot be incredibly successful with one style of investing; you certainly can, and I have interviewed many investors who have done just that.
The bottom line is that when you are new and you have not yet established your business and found success, it is imperative that you narrow your focus and choose one method of investing. Then pour yourself into that method 100% and don’t allow yourself to chase every shiny object that you see.
I have never met a successful real estate investor who tried to do all methods of real estate investing simultaneously from the beginning. That person just doesn’t exist as far as I know. Choose a method, become educated on that style of investing, and then take massive action. That is truly the formula for being a successful real estate investor. There are a few more details, but that is the outline.
If you haven’t done so already, tomorrow I want you to make a decision on the style of investing that most suits you. If you don’t know how to decide, go back and listen to episode #38 on choosing an investment model. Once you’ve made the decision, put your head down and get to work. Don’t let anything or anyone distract you. Take action and make it happen!