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You Be The Judge
As a real estate entrepreneur, educator, and author I am frequently asked, *What's the best way to get rich in real estate?*
Well, let's see...the possibilities seem endless...there are books and courses on just about every aspect of real estate...lease options, mortgage lending, rental property, mobile homes, lender foreclosures, tax lien foreclosures, discounted mortgages and of course my favorite, fixer-upper properties. Not to mention the stuff offered by the late-night infomercial guru's.
Confused? I know you are. In fact, here's an excerpt from an e-mail I just received: *I hear one expert saying there is nothing that beats lease purchasing and another says L/O is the best way. Another says you can make money rapidly doing wholesaling, assumptions, fixer-uppers. I do not know who to believe.*
All right...let me remove all of the confusion from your mind...once and for all! The truth is, you can become a real estate millionaire using ANY of the techniques mentioned above. All of them offer the potential for virtually anyone to become very wealthy. Surprised?
One of the biggest mistakes a novice investor can make is to bounce around...trying to put together a L/O deal, while trying to flip a wholesale deal, while trying to buy and manage a duplex, and all the while thinking about doing a rehab project. I call it the *Bumble Bee Complex.* Just buzzing around, sucking up a little nectar here and there and maybe pollinating this or that but not really accomplishing very much. Sound familiar?
Think about this for a moment....how do you suppose the various experts in any field became experts? I can guarantee you it wasn't by being a "bumble bee!"
Here's a little pearl of wisdom that if you let sink in and become a part of you, has the potential to change your real estate or business career forever....
*If you are the best at what you do, you'll eventually make a lot of money.*
The message is clear...you have to specialize in a particular niche and become the best you can be at it. In fact, your goal should be to become THE BEST at it, at least in your local market.
An easy task? Nobody said it was going to be easy. It will take a lot of hard work and may take years of experience to reach the top of your game...much like a professional athlete. All the while though, you will be learning every nook and cranny of your niche, every obstacle and the best way to overcome them. Importantly, you will be making money. And eventually, you will make a lot of money.
When you specialize in a particular niche, you develop a system of doing business that is tailored to your needs and your market. Over time, as you refine the methods that work best for you, something magical happens! At some point, your brain kicks into overdrive and allows you to visualize a technique or way of doing business that gives you a competitive advantage.
When you perfect a technique that allows you to beat out all or most of your competitors, you are home free...and the money will start rolling in...big-time.
So, what's it going to be....mobile homes, tax foreclosures, mortgage notes, wholesale flips, fixer-uppers? Let me give you some suggestions on choosing an area in which to specialize.
(1) Choose a specialty that you are very interested in. It appeals to you. In fact, you want to pick something that you are or can become very passionate about. You love it and it consumes you!
(2) Evaluate the viability of your chosen specialty within the context of your local market. For example, if you live in an area with very few older, run down houses, fixer-uppers may not be a good match. Likewise, if lease options are little used or little known in your market due to local economic conditions, you might want to consider a different strategy.
The first rule of business is to sell something people want to buy. If you are offering a service or product that people don't want...it's going to be tough. Remember, even if they need it, unless they want it, it won't sell.
(3) Consider the time you have available to pursue a particular specialty. Some can be more time intensive than others and some require that you be active during *normal business hours.* On the other hand, some specialties like fixer-uppers and tax lien investments are easier to fit in on a part-time basis.
(4) Consider the capital requirements for the specialty. Most, if not all of the real estate specialties can be started with little or none of your own money. But typically, some money changes hands in any business transaction, and it needs to come from somewhere i.e. partners, lenders, investors, etc. How much up front money is needed in your specialty and where is it going to come from?
(5) Think about your desire for future geographical flexibility. Would you like to relocate to another area of the country? If so, when? Our family likes to move around periodically and doing fixer-uppers and foreclosures is compatible with that lifestyle. Owning and managing rental property is not.
Now you have it...the secret to becoming a real estate millionaire...specialize! Think about it long and hard, talk to people, read about the various specialties, evaluate your local market, and then make a decision. And never look back!
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