The Number One Best Way to Make Money Investing in Real Estate
I was moved to write this post after seeing a number of posts talking about best ways to invest. I totally disagreed with the philosophy of the articles. Headings like, "The top 5 best ways to invest" or "Top 7 or top 10 best ways". To me these articles are counterproductive. I mean seriously, The top 10 best ways to invest?? They will point out ways such as invest for cash flow, or invest in buy and hold, or invest in notes, or do wholesaling, etc etc.
Investing takes focus
If I have learned anything over the past 18 years of investing, the number one challenge investors face is lack of focus. They spend too much time chasing the next best investment or strategy. When you are exposed to all these top 10 ways to invest how you are supposed to know which way to invest. They cannot all be best and so the confusion begins.
Chasing the latest investing idea
I have seen investors spend 2 and 3 years of chasing the latest investing idea and as a result 3 years would pass and no investments were made. The best time in our lives for investing opportunity was during the past 5 years and all these distractions have stalled many investors and caused them to totally miss the best investments.
The Number one best investment
The investment strategy that you are most passionate about will without question be your number one best investment strategy. I have seen so many people worrying about squeezing out every nickel they can get from an investment that they find themselves frustrated and confused. If you are getting frustrated and confused because you feel you may have missed a better opportunity elsewhere, I have a bit of advice. Only look at investment styles and strategies that excite you.
What type of investor are you?
If you are trying to decide what investments are best for you start by looking at what type of investor you are. This will instantly narrow the field.
As Passive investors you tend to favor those investments that require very little ongoing effort. Your interest is obtaining investments where you can sit back and watch your cash flow roll in and your investments capital grow. Typically they tend to favor buy and hold rental property or perhaps notes as there is little day to day activity involved in the investment.
As active investors you like to be involved in every step of the process. You want to squeeze every possible nickel from the investment and are willing to get your hands dirty and get involved. You tend to favor investments such as wholesaling or fix and flips.
What makes one better than the other is your interest level or your passion to learn as much as possible about that particular investment. Study it, learn it, master it and profit from it. When you have high interest in it or have a passion for it you will make the investment perform best for you.
There cannot by 5 or 7 or 10 best investments for you as each person has their own interest and objectives, so stop being distracted by these headlines that draw you in only to have you second guess what you are doing is best. If it interests you it is your best investment.