There Is No Right Way To Invest
By Paul Esajian on October 30, 2013
Listening to everyone, and their personal opinion on how to succeed in the real estate business, may confuse the average individual. There is a myriad of possibilities, each of which have their benefits and pitfalls. For every investor who believes that single-family rentals are the only way to go, there is someone telling you to stick exclusively with multifamily properties. For every investor looking for quick flips and rehabs, there will be someone telling you that they offer too much risk and the market is over-saturated. The truth is somewhere in between the lines. There is not one correct way to invest in the real estate industry. Accordingly, choose the exit strategy that fits your needs and aspirations.
What works for one investor may not work for someone else, as markets can influence particular strategies. Every investor’s opinion about the business will be based on their individual experiences. That experience may sometimes consist of one bad deal. From that, they will deem the particular niche a waste of time. They are essentially providing you with a biased opinion resulting from a bad experience. There is nothing wrong with listening to as many opinions as possible, but at the end of the day, you need to mold your business based on your own beliefs.
One of the best things about investing in real estate is that there are so many different ways to do it. Investing in everything from mobile homes to 20 unit buildings can be successful for the right person in the right place. If you just want to do a few flip deals every year, you have that option. If you want to focus on single-family rentals you can make money on that as well. Like anything else, your personality and long term thinking will shape your investing strategies.
When you have an idea that is different from the norm, there will inherently be those who relegate it to the side. Their mindset is most likely already made up. If you go to investment club meetings, you will deal with a lot of investors with varying degrees of success. If they have not been as successful in one area, they will bash any new idea that strays from theirs. If you have done your homework on an area or on a property and feel that your strategy is the best, then there is no reason to let doubt from outsiders creep in
If everyone invested in the same properties or in the same way, eventually the supply would diminish and the business would get stale. You can be successful with any strategy if you are passionate, knowledgeable and creative in whatever your niche may be. There will always be people along the way that want to put you down and tell you how bad your idea is. However, if you stick to your guns, you could be successful in any niche or strategy you desire.