Epic Real Estate Investing - Go Deep Before Going Wide | 373

Episode Date: April 13, 2018

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! But today on Financial Freedom Friday, Matt shares the benefits of resisting new opportunities in favor of going deep before wide. 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

Hey Matt here at Epic Real Estate and welcome to Financial Freedom Friday. It's time for Financial Freedom Friday with Matt Terrio. 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. 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 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, fast, fast, and we just want to go further,

than anybody else we just want more more and more like this is good this must be better and how fast can I get to the top and so I can have it all and that's 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 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 these deals that

come our way and 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 gonna cause that property perform for you. And then you want to whether you're managing the property yourself or you're 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 in place so that it's running as passively as it possibly can. Like no piece of property is ever 100% passive. It's, it involves people, it involves houses 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 is not going to make it any better, it's actually going to go the other direction. And 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, you know, you're

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 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 a good realm you want competency you want a good history you want you want good experience you want their expertise and you want that one person whoever it's gonna 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 you got a 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 market 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 it's all about location right you've heard that before location location location location it's all about location and that doesn't have to do with the

value 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 what the where the dangerous places are what to do what not to do where the school systems are good and and just where the streets are safe and 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 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 within a business. So there's a lot of nuances there. So I want you to, if that were your second choice, I want you to go deep there. Get that running and 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 what I mean 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. I will see you next week on another episode of Financial Freedom Friday. Take care. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.