Here are four ways you can start thinking about which type of real estate investing you want to get into:
- Reverse-engineer your life. Think abut the lifestyle you want to live. The quickest way to burn out is to blindly jump into a commitment. You really have to be deliberate, and envision the lifestyle you want. It's the same principle as our Freedom Cheat Sheet. First envision where you want to be, then decide how to get there. Do you picture yourself rehabbing houses in your spare time? Do you like to get your hands dirty? Or are you looking to acquire passive income so you can spend more time with your family? Picture the end goal. If you don’t envision the future, you’ll never get there.
- Follow your gut! If you trust your instincts, you’ll never be led astray. Subconsciously, we know the right thing to do; it’s our brains that talk us out of it! Identify your visceral reaction, and follow it.
- Fail fast. It’s okay to make mistakes when you’re starting out. Maybe it will take a few wrong turns before you find your niche. I certainly did. The important thing is to learn from those mistakes quickly, and then redirect. Maybe you’ll purchase in the wrong market, or hire the wrong contractor. Don’t let those missteps discourage you, let them inspire you to do it right the next time.
- Don’t let money be your motivating factor. Think about it like this: if you had one billion dollars, would you want to rehab houses? If so, it sounds like that’s a passion of yours, and you should go for it! If you had one billion dollars, would you be interested in creating legacy wealth through buy and hold real estate? If so, dive in!
And there you have it, four ways to determine your niche in real estate! Now that you’ve thought about what you really want to do, the most important part is next: take action!