Hey everyone, we hope you are out enjoying the summer and warmer weather. We make it a point to spend more time with our families when the kids are out of school (and trying not to have our smart phones nearby). Things have been quite busy at Venture since we launched last fall purchasing 39 new doors to our portfolio and helping dozens of new investors get started on their path to Building Wealth and Living Life through real estate investment.
In talking to new investors, one of the single largest hurdles that many face is what’s called “Shiny Object Syndrome“ (SOS). This affects many of us, especially when we find something new that we are excited about. We try to add the new exciting thing to all the other exciting things we are already thinking about. In Real Estate, once an investor understands the power and options available, it’s not uncommon for them get their mind wondering in many different directions. They may spend countless hours on the MLS hunting for deals they may not move forward on, thinking about funds they do not have yet, and searching out any and every deal that financially makes sense.
In our experience, we have found the most successful investors are those that understand their strengths & weaknesses, then prioritize and focus on the things that will deliver their goals, without spreading themselves too thin. We are no strangers to SOS, even in our own business today. We evaluate complimentary businesses, have expanded to new markets, and even purchased different asset classes. For new investors however, this could be traumatic as it leads to analysis/paralysis or having so many different options that they cannot decide which way to go, or worse — do not to move forward at all.
Let’s take an example that we see on a daily basis. New investors who are excited about investing, get educated and in the process learn about many different strategies, different areas to invest, and different asset classes. Let’s assume that a new investor has gone through the financials, understands how real estate can build long term wealth and is convinced it is a strong decision to move forward with. In their learning of different strategies, they spend a lot of time on the MLS, look at single family, multi family, commercial properties, fix & flips, and analyze countless opportunities. The largest hurdle we see in these situations is that they may uncover many different options that are great investments, however don’t know which way to go, so they let each opportunity pass by and either prolong, or don’t take action. The other thing to consider is that the options the investor may have uncovered may not even be attainable for them at the current time, ie: they do not have the finances, they are unfamiliar with the asset class, or have no experience in the strategy or market area.
All in all, exploring new ideas, and expanding your knowledge are great things and, in most cases, necessary. However, we must not lose sight of being focused to gain the right understanding in one area, and not spread ourselves to thin which may lead to Analysis/Paralysis or not even starting out in the first place.
In moving forward with new investors, we usually give the following advice:
- Look to focus on one asset type or strategy initially, to build a comfort and experience level prior to expanding
- Don’t focus on opportunities you know you cannot take action on (ie: we see investors analyzing 25 unit buildings, when they do not have the finances, partners, or experience to move forward)
- Know your strengths and weaknesses. If you don’t have the experience, partner with someone who does. You may have to give up ownership equity, or funds, but usually the payback in the experience that you gain is worth much more than the price paid.
- By being too broad, it is more difficult to truly be an expert on one strategy or area.
- Make a decision and TAKE ACTION: We see far too many people walk away from great opportunities, or don’t even take action at all simply because they couldn’t decide or waited too long.
- Don’t spend a lot to save a little. We see many investors walk away from great investments because they “may” find something slightly better. No property is “perfect”, try not to waste time to save dime, you may end up spending a dollar in the process.
Visit us at www.VenturePropertyInvestments.com and our pages on facebook or LinkedIn to learn more about how we invest in real estate to profit in both an increasing or decreasing housing market. Or contact us if you would like to learn how we are providing double digit returns for our partner’s and clients year over year.
Until Next Time,
Build Wealth. Live Life
If you haven’t come out to one of our events, feel free to visit our events page on our site at https://venturepropertyinvestments.com/events/. If you are just starting out, or a seasoned pro, come out to Learn and Network with others like you.
Martin Kuev & Chris Shebib are full time Real Estate Investors, Realtors and Wealth Coaches who have over 20 years experience in Real Estate. With multi-million-dollar real estate portfolios and a team built over the past decade, they left the corporate world to have the flexibility to spend time with family, continue their own real estate investments and help others build long-term wealth.
Both Chris & Martin are first and foremost Husbands, and Fathers. Both are actively involved with their families and each have 3 daughters keeping home life full of surprises.