Do you have the right real estate investing start-up strategy? How many deals should you be biting off from the beginning?
One of the most pressing questions individuals have when getting into real estate investing, and more should perhaps ask, is how many properties they should take on initially. The amount of properties you acquire should be a direct result of your real estate investing strategy. Everyone will have a different approach and it is important to follow the path you designate.
Is starting out with a single real estate investing deal the way to go, or are you better off going all out with a dozen or more?
The right answer depends on your real estate investing strategy, resources and real estate education. Those just getting started with flipping or rehabbing homes for the first time may want to test the waters and hone their craft on their first couple of deals. Real estate wholesalers, and those focused on flipping real estate contracts, can afford to embrace a big volume of deals as soon as they get started. Real estate investors acquiring rental properties or mortgage notes may well be advised to keep diversified from day one. Typically, one out of every three investments will outperform expectations while one often under-performs and the other comes in on target.
A real estate investing startup strategy is smart and can help you avoid the pitfalls of many mistakes.
However, it is essential to have a good system in place from day one. Certainly there has never been a time like now to invest in real estate, just make sure you have invested in your real estate education first.