Epic Real Estate Investing - Go Deep Before Going Wide | 1074

Episode Date: July 9, 2020

It's tough for real estate investors to pass up opportunities - it's in our nature to look for new ways to be successful, and sometimes, we just want to try everything! However, in today’s episode, Matt shares the benefits of resisting new opportunities in favor of going deep before wide. Tune in and learn 4 specific things you can do to set yourself up for success in future properties, markets, and asset classes. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-A's.com.

Here's Matt. So this last week, I just got an email from Mike. He's a podcast listener. And he asked me a really good question, really simple, basic question, but it's really good because if you get this wrong, you know, your entire real estate investing can just go right down the toilet. And we don't want that. So I wanted to address this with everybody because you might have the same question as

well. Mike had asked me, listening to the last podcast, I have a question. What do you mean by going deep before going wide? Because Mike, he says, I recently bought my first investment property. Are you saying learning the business? ends and outs with this property before I go buy another. Focus on this property. Don't go buy another property too soon.

Well, yeah, kind of. And that's a great question, Mike, because, you know, as entrepreneurs, real estate investors and entrepreneurs, we have this desire inside of us. Like, it's just part of our DNA that we just want to go further, faster than anybody else. We just want more, more and more. Like, if this is good, this must be better. And how fast can I get to the topic? And so I can have it all.

And that can be really dangerous if you're not careful with that. It can be a blessing as well, but it can be dangerous. The other part about us as entrepreneurs is we look at everything kind of as an opportunity. And when these different opportunities come along, like we have this fear of missing out. Like, well, what if that's going to be good or what that's going to be the winner or what this is going to be more profitable. So we end up saying yes to all these little opportunities and all these deals that come our way. And what happens is our attention, it starts to get dispersed over all these different

opportunities and that our attention gets wider and wider and wider. And that's a really scary place to be if you didn't do it right up front. So when I say go deep, I'm talking about basically doing it right the first time before you go take a second stab at it. So for example, with your property, Mike, I'd make sure that the property is in good condition. Everything is functional. Everything is working, everything is safe, everything is up to code. Just make sure it's a really good solid property. Then you want to go out and find a really good solid tenant. I mean, do almost as much due diligence within reason, of course, but do as much due diligence on the tenant as you did the property itself, right? Because you want that to be a good, stable, good paying tenant that's

going to cause that property to perform for you. And then you want whether you're managing the property yourself or you're hiring having somebody else manage it for you, you want to make sure that you get all of those systems in place or your property manager has those systems and place so that it's running as passively as it possibly can. Like no, no piece of property is ever a hundred percent passive. It's, it involves people. It involves houses and, and things happen, and you're going to have to get involved here and there every once in a while. But you want to make sure that all the systems are in place. So the property is running in the way that you had expected it to when you purchased it right up front. Right? Because if you don't have good systems

in place with one property, with one deal, by adding a second, it's not going to make it any better. It's actually going to go the other direction. And then, the more and the more you add without the good solid systems in place, without the good people in place, without the good tenant in place, without the good property in place, you know, real estate investing can actually get rather unfun. It can become a miserable experience if you don't do that right and if you go wide too fast. So definitely with that first property, just get it performing the way you want it to before you get the second one. Second is look at your teams. Like you've got contractors and you've got realtors and you've got property managers, you know, really go deep

with those relationships and get a good relationship of trust. You want competency. You want a good history. You want good experience. You want their expertise. And you want that one person, whoever it's going to be, find that one person, the good one first. Because, for example, if you're out there and you're fixing and flipping properties

and you've got two mediocre contractors working on the two different properties, you know, that's not necessarily better than finding that one contractor to work on the one property. Okay? So if you go wide too fast that way with your teams, that can become a lot of problems as well. Third thing would be to go deep on your actual market. So, Mike, if your property's in a specific market, well, obviously it is. Just make sure that you understand that market and the nuances of that market.

Because real estate, it's all about location, right? You've heard that before. Location, location, location. It's all about location. And that doesn't have to do with the value. It has to do with the performance of the property as well. So little nuances, local knowledge, get to know the area, you know, get to know where the dangerous places are, what to do, what not to do, where the school systems are good, and just where the streets are safe and where the tenants are employed and all that, all that. Just get to know the market really quickly before you go out into another market.

Fourth thing would be asset class. So now you've got a single family residence and now you're going to go jump into multifamily. And then you heard somebody else was having a really good time flipping land. So you would go over to flip the land. And then you heard about the storage facilities. And then you heard about the mobile home parks. And you started going all over the place and have all these different asset classes. And that's okay.

It's okay to diversify in that fashion. But make sure that you really understand how your single family house works first before trying an additional asset class. And if you go into something like mobile home parks, I mean, that's like a business within a business. That is almost going to be like a business within a business. So there's a lot of nuances there. So I want you to, if that were your second choice, I'd want you to go deep there. Get that running functionally and to your expectations just in the same way your single family is running for you because you went deep there. Do the same thing with that next asset class before adding that third and the fourth and the fifth.

All right. So that's let me by going deep. Just make sure that you get everything working in the way it's supposed to the first time. So when you add a second one, it's better, not more complicated and more of a headache. Make sense? Thanks for the question, Mike. Take care. flow. Yeah, yeah, we got the cash flow.

Yeah, yeah, we got the cash flow. You didn't know, home for us, we got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.