If you have decided to get into real estate investing in the last couple of years I'm sure you have been sold some very, extremely, rarely seen, strategy to make you a fortune in real estate. You will also have realized that you can achieve this by using their unique, proprietary, one of kind "proven system". This is the ONLY way to make money in real estate. All while sitting at home!
Then when you go through the sales funnel and spend the money and you realize they're just selling you how to do Owner Finance or some other strategy that simply isn't that special. (Based on true events)
We're going to explain how to really determine if what you're hearing is true or complete BS.
The reason I say mostly is that they're partially right. We just don't believe it's the ONLY strategy to make money in real estate.
The only way to be a successful real estate investor or an investor, in general, is to be able to adapt to the market. You must be able to adapt to the changes going on in the market.
In our experience working in San Antonio for 6 years investing, flipping, and networking we've heard many investors swear to many different strategies.
Years ago we heard investors tell us the only and best strategy to make money in real estate was subject to's. Years later those investors are now struggling.
Same thing with investors who swore up and down to owner financing saying that it was god’s gift to investors. Right now a lot of those investors and even gurus that taught only owner financing have had to get into flips and/or rentals in order to make money in real estate because that market has changed.
In the meantime, a lot of people fall for these “very unique, guaranteed to make you a fortune strategies”.
The truth is that every strategy has its time. You, as an investor, need to be well rounded. Know how and when to use wholesales, flips, owner financing, rentals in order to ALWAYS make money in real estate.
You need to be open to using different strategies. We've heard so many times people say, “I only want to flip houses, I hate rentals they’re stupid.”
Or people who only do owner finance will say, “oh screw flipping, it’s too risky and rentals are a headache because you have to fix toilets and blah blah blah!”
The renters will say, "I rather have cash flow and appreciation".
They're all right to a certain extent but there are situations in which certain strategies make more sense depending on the deal. When you close yourself off to other strategies you are also closing yourself off to other opportunities.
The reason why 6 years later we are still in business and growing is that we adapt to the market, we see how the market is changing and we look to see where it's heading next.
Do we think is it going to a rental market? Do we see that there's faster appreciation and flips make more sense? Or do we need to go back to the basics and stick with wholesaling again?
Notice how we're not saying, "How can we ONLY do flips?"
Right now we actually have multiple deals using multiple strategies. We have rentals, we have flips, we have a few new builds and we also still wholesale. Each deal requires a different strategy to make it more profitable and efficient. There’s a market for everything and you need to be able to adapt.
Instead of following one guru’s advice on his strategy or following the hottest trend right now to try and understand the market.
Not necessarily. Well... maybe just a little.
What seems to be a natural progression of a real estate guru is the following:
Understand that when a guru teaches a certain strategy of how to make money in real estate, it's because it has been working for them for the past couple of years. This doesn't mean it will continue to work today.
That's what we realized when were learning subject tos. We were getting in on the tail end of things and it was a strategy that wasn’t working as well as it had. It had worked in the past because the economy was just starting to recover and there were still a lot of people going through foreclosures, so subject tos were high in demand. But things were starting to change and by the time we got into real estate, they weren't as available.
That's when we also realized when these gurus stop making money in real estate, they start teaching these unique strategies because it no longer works for them but it's all they know.
But I'm sure you've heard it from regular people also. Usually why these people have most likely fallen for a guru's training. Now, they try to convince everyone around them why they made the "right" decision. Which in reality they're just trying to convince themselves.
It's fine to use gurus for education and training just don't get sucked into the mentality that there's only one way to make money in real estate.
You should try to be a well-rounded investor.
Learn as many strategies as possible and keep them in your toolbox. The more strategies you know the more deals you can take advantage of. Just like a contractor doesn't only build a house using just a hammer, you can't build a business using just one strategy.
Don’t let your emotions get the best of you, look at the deal and determine which strategy makes the most sense and will make the most money.
That's the great thing about real estate there are so many ways to make money. It can actually become overwhelming on all the options you have. The key is to know the current market and also understand how it varies in different pockets.
In San Antonio, we areas where you don't want to flip, you rather should be doing Owner Finance. We also have pockets where you can't get decent rentals but it's great for flipping.
What strategy you use will also depend on which neighborhoods you're investing in. Rentals might work on the north side while flips are better on the south side.
So get out there! Learn your market, determine the right strategy and make money!