Beware of Absolutes While Investing in Real Estate
By JD Esajian on January 3, 2014
As the year’s end approaches, it is time to review all of the ups and downs your business has gone through over the last twelve months. For some, it may have been a profitable year full of many new opportunities. Others may have seen it as a time of transition. Whatever your year was like, it is wise to take time and look at what went right and what you need to improve on. You may notice that the more opportunities you are exposed to the more profit you can make. If you have it predetermined in your mind that you will stay away from one particular area or type of deal, you may be missing on a big opportunity.
It is human nature to stay away from something if you have had a bad experience with it in the past. Just because you or a fellow investor had a rough time with one deal doesn’t mean it will happen again. If you say you will never invest in a multifamily house or condo, you are cutting yourself off before you give it a chance. You can have your niche, but you should also look at every new deal free of any biased or preconceived thoughts.
The reason that most investors stay away from something is because they have either heard second hand about all its warts or they are not fully educated on the topic. Before you cross any type of investment off your list, you need to know everything about it. Do your own homework and due diligence without listening to what others have to say. What works for one investor may not work for another. There is nothing wrong with admitting you are wrong and getting a late start in investing in a certain area. If you close all of your doors, soon enough you will start to see deals coming your way dry up.
Instead of the business becoming monotonous and a little boring at times, you will energize yourself by learning new things and finding different areas to invest in. It is not out of the question to find something you truly enjoy. You can have your opinions and principles, but always leave yourself open to new opportunities.
Each new marketing strategy, social media campaign, investing opportunity and any change in your business should be evaluated individually. Never is a long time in business. If you say to yourself you will never work with a private money investor or never buy at a tax lien auction, you are closing doors before you can open them. As the year ends, take a look back at your past successes and failures, but know that you can write a whole new story for your business next year.