Today we are sharing a special article with you from fellow Canadian real estate investors and investing experts Nick & Tom Karadza. We’ve often shared stories about the $20,000 we spent on real estate programs early on in our investing days … and we thought that the advice Nick and Tom are offering here is exceptional.
We had the pleasure of speaking with Tom Karadza recently about lease option investing. You can get a copy of the transcript and the call replay here – if you’re interesting in learning how you can make a single family home generate more rental income AND give you money in your pocket from day 1, then you MUST listen to the call.
So… now… here’s today’s post from Nick and Tom Karadza of Rock Star Real Estate.
You Only Need to Get Good at Two Things in Real Estate
Recently we’ve been running into more and more old friends – not really sure why, maybe it’s fate or maybe it’s Facebook. Either way it’s really cool.
And as luck would have it several of them are spending time learning about real estate investing. A few have recently been spending big money on various real estate investing boot camps. We’re talking $20,000 to $30,000 dollars.
We’ve spent tens of thousands of dollars on various real estate seminars and continue to spend on business and marketing seminars. We must be approaching the $100,000 mark.
Sheesh, I would have called you a flat out liar if you would have told me back in University that we’d be spending “six figures” to sit in banquet halls to get more education.
But here we are.
Anyway, once our old friends learn we’re into real estate investing in a pretty big way they’ll call us after they attend a seminar and share a whole whack of stuff.
By the end of their seminar they’ve heard all about assignments, sandwich lease options, vendor take backs, commercial properties, land development, sub-dividing, “highest and best use”, net operating income, mortgage products, hard money and a whole load of stuff about buying properties for pennies on the dollar.
And they’ve also been offered at least six other advanced courses in each subject by five different instructors.
At that point it’s obvious they’re in total overwhelm. Frozen like a deer staring into headlights.
We feel for them. They initially took the seminars to “break free” from the rat race and now they’re faced with creating income from the rat race to buy the next “must have” course.
It’s all a little upside down and backwards.
We could sit and chat with them for days about the finer points of each area but with their heads just about ready to explode … they don’t need to hear any more.
But this situation has become so common that we’ve been trying to figure out a way to make things clear for our friends in this situation.
And we’ve boiled it down to offering two pieces of advice.
First, before you dive into any real estate deals research it thoroughly. Research the people who are already doing what you’re thinking of doing. How are they doing it? What markets are they in? Make sure there is money to be made before jumping in head first.
You only need to get really good at two things:
1. ONE type of property.
2. ONE marketing system that generates customers (tenants) for the property.
Why? Because there are literally dozens of ways to make money in real estate. If you know a little bit about foreclosures in Florida and a bit about condos in Vancouver and a little about oil towns in Alberata and a bit about student rentals in Waterloo you’re a master of none.
You don’t want to be a generalist, you want to be a specialist. That’s where the money is.
And there are tons of ways to get people into properties. There’s classified ads, online ads, YouTube videos, Twitter alerts, voice mail blasts, postcards, flyers, direct mail, email lists, bag signs, directional signs and so on. Spending too much time on all of these virtually guarantees you’ll get no where.
We see it all the time.
The person who “kind of knows” a lot of stuff but is an expert in nothing.
We tell everyone who asks, we are good at two things: Finding good single family homes and making them cash flow.
Our money says this -> if you’re just getting started or have been trying to get started for many years, you’re likely paying attention to too many things.
You believe that the “magic money making silver bullet” is around the next corner and you don’t want to miss it.
Stop it now.
Get good at two things. One type of property and one type of way of profiting from it.
Everything else will fall into place.
So let’s say apartment buildings are your thing. You were born to manage large properties. You’re a natural at it.
Then focus all your time of finding buildings and making them produce profit.
That’s it, end of story.
Or, let’s say you are a handy man and you’re born to swing a hammer. You can’t stand talk of “capitalization rates” and endless number crunching spreadsheets.
Then, maybe, you’re a builder. You find a property, turn it into a masterpiece and sell or rent it for top dollar. Maybe that’s your cup of tea.
Avoid distractions at all costs.
Seriously, stop running around in a circle.
For example, if reading our emails and website helps you get you closer to achieving your “two things” then stick around. Keep reading, we’ve got lots to share.
But if we’re distracting you form your goals then don’t return to our website and unsubscribe from our emails.
Yes, we’re serious.
Here’s a challenge for you. Look through your inbox and examine all those email lists you’re on. Pick the vital few and get rid of the rest.
Next, look through all the MLS numbers you’ve been collecting. Dump all the ones that are outside “your one property type”.
Seriously, start to F-O-C-U-S.
Remember, you’re looking for two things.
One type of property. One way to get customers for it. It’s a very profitable strategy.
Don’t complicate things. There’s big bucks in simple, efficient business processes.
One type of property.
One type of marketing system.
It’s a very simple and extremely profitable business model.
Time to go off and create yours.
Until next time … be a Renegade!