1. Do your research
Doing your research as an investor means understanding both the market as a whole, the specific area you want to invest in and the type of real estate you are investing in. It means thoroughly vetting any partners you might be thinking of investing with as well as any attractive offers you come across. In fact, the more attractive an offer appears to be, the more carefully you want to research it. Nowhere is the old adage “if it’s too good to be true, it probably is” more true than in the world of investment. That doesn’t mean there are no “golden” opportunities out there, it just means most wealthy real estate investors generally got that way by being hugely skeptical and extremely pessimistic.
2. Develop a niche and stick with it
While Bo Jackson may have been outstanding at both baseball and Football, there is a reason most professional athletes stick with one sport. To be the best at one thing, you generally have to focus on that one thing - no matter how great you might be at a number of things. That doesn’t mean that any number of professional athletes don’t dabble a bit in a number of sports such as golf or skiing, it just means they reserve their primary energies, efforts and focus for one specific thing.
3. Don’t go it alone
Not only will you want to develop a network of educated experts to help you make the best decisions, but cultivating fellow investors can also help you minimize your risk. This doesn’t mean you need to partner with someone on every investment, but you can also tackle bigger fish with a team. If you want to do more than just dabble in real estate investment, you will want to build a strong, solid, stable network of support.