We see many real estate investors who have lost everything over the past few years. Why would so many investors lose everything if indeed they did their diligence to insure they have great investments? Simply put, they get wrapped up in the tactics. Some are experts in rehabs, while others are experts in single family home investing, some are experts in multifamily investing, and so on and so on.
But hey, “It’s the Market Silly”!
When focusing on your tactics or your niche, are you focusing on the most important aspect of your investment (The Market) whatever your niche? If you perfect your niche you can make it big, you can also lose it big as many have recently found out. All the diligence in the world will not stand up to the benefit of diligence on the market itself.
Market conditions are paramount to any investment making it or breaking it.
Look at commodities as an example. When frost hits, produce freezes and farmers lose. The best quality, highest profitable farmer loses. The lowest quality, lowest profitable farmer loses. When the crops are damaged by conditions, both the highest quality producing farmers and the low quality producing farmers are all losing. Why? Because it is the market conditions that dictate the return of the outcome. It did not matter that one farmer did a better diligence to insure the best crop, he still lost.
Whether you are a single family home investor, multi family home investor or a rehabber. Whether you did a stellar job picking the best investment property, job one is to make sure the market has sustainability.
See it big: Know your niche and identify the best investment
Keep it simple: Know Your Market and pick the best market