Today’s REI Classroom Lesson
Coach Collard explains why it’s important to be knowledgeable and experienced in multiple areas on real estate investing before fine-tuning and sticking with just one niche.
REI Classroom Summary
By expanding your knowledge and expertise to different types of real estate investing, you’re better able to prepare for shifting markets.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the
FlipNerd.com REI Classroom where experts from across the real estate investing
industry teach you quick lessons to take your business to the next level. And now,
let’s meet today’s expert host.
Coach: Hey everybody, this
is Coach Collard. I’m out in Las Vegas,
and I’m the host today for FlipNerd’s REI Classroom. I’m really excited to be
with you. I hope you guys are going to get a lot and so let’s just jump in.
Today I want to talk and share a message with you about learning wide in order
to go deep.
Mike: This REI Classroom
real estate lesson is sponsored by UglyOpportunities.com.
Coach: What I’ve seen over
the years as a coach, because I coach a lot of investors, thousands of
investors, in fact, including realtors that want to invest, is that they never
spend enough time going wide with real estate, kind of like an ocean.
So I want to compare the
real estate market to an ocean. It’s wide and deep. And before you just jump in
and go as deep as you can, because it might be dark and murky down there, I
want you to learn wide so you might consider other options.
The reason I bring that up
is because most people when they get into real estate, they get in for one
thing, and they just want to flip properties. Totally get that. I acknowledge
that. That’s great. It’s super sexy and it makes a lot of money, I realize
that. And you know what, they make a lot of TV shows about it, too, right? Flip
this, flip that and flip the other thing.
But I just want to consider
having you go wide so that you can find multiple lanes to play in for when
markets shift. It’s really important not to get pigeonholed into just one area.
Now, let me give you a quick example of a few students and just different
things they ran into. In 2007 and ’08, when the market shifted, it was the
[inaudible 00:01:34] meltdown of 2007. It changed everything. Lending became
restricted, all sorts of adjustments had to be made. And people that were
buying just for the sake of fixing and flipping were buying properties that
they paid too much for and the market softened. Suddenly they got stuck.
Now, in a lot of cases,
these people financed with the crazy products that were available. I applaud
that because I’m a big person in leverage. But the problem was when the market
shifted and they couldn’t rent the properties anymore, they got stuck. They
didn’t have any solutions.
So my encouragement is, if
you consider going wide, you would know more about real estate and you would
have options like short sales, discounted debt, maybe selling the note. There
are a lot of ways to adjust to a decision that looks great today, but in six
months from now, when the market shifts, it looks like you’re a bad guy, or you
made a bad decision.
I want to encourage you.
You didn’t make a bad decision. You just need more information and better
information. So, guys, I could overwhelm you with material and examples, but I’ll
probably leave it right there for you today. So I appreciate you being here.
And that’s it. That’s a wrap for today’s FlipNerd REI Classroom. Thanks for
Mike: HomeVestors, the “We
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a pro looking to take your business to the next level, or whether you have no
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Please note, the views and
opinions expressed by the individuals in this program do not necessarily reflect
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partners, advertisers or affiliates. Please consult professionals before making
any investment or tax decisions, as real estate investing can be risky.
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