So the housing market is finding its legs and a new real estate investing surge is sweeping the country. Great news for investors but a time when both the new and experienced must guard against distractions and the temptation to let confidence and curiosity kill their current high flying finances…
This is when all types of ‘experts’, advisers and real estate investing ‘gurus’ crawl out of of the woodwork and the ex-stock brokers, car salesmen and mortgage brokers jump into pushing properties for a quick buck. “You’ve been in real estate for 10 years?”, “really, where were you during the last 6 years?” slinging timeshares, Avon or a now defunct MLM maybe?
There are dozens of exciting ways to profit from real estate investing, many work but many can also be more of a distraction than a profit center. Noticed a rise in note investing, commercial real estate and construction hype?
There is nothing wrong with these types of real estate investing strategies and being diverse can be wise. However, is adding new strategies and heading off in new directions right now really going to take you closer to your ultimate goals or slow you down?
Recognize that while all indicators are looking good and we seem to be on a sweet upward swing we are still on much shakier ground than during the last real estate boom. This means any major catastrophes could make a large negative impact on certain regions and niches. This could be poorly conceived new policies, new wars, natural disasters and terrorist attacks.
Build up your real estate education, know your business cycles and the signs to watch out for and especially when to be wary of overbuilding or speculation.
If branching out is something you crave and is beneficial to the pursuit of your goals then make sure your current real estate investing business is set with sound systems and fully automated so that it continues to produce income and wealth even if your new ventures fail to perform as well as expected.