How to decide on a real estate investing strategy as a beginner? (My Journey)

As a beginner, every real estate investing niche looks promising! Avoid going deep on all niches-you will get bored and give up Its unsexy work - optimize for time to mailbox money Go broad and shallow, pick a niche and then go narrow + deep

Who should read this? You know the promise of REI to get FI and not sure where to start In life, if you are indecisive like me and feel emotionally clogged up w/ big decisions

This framework was the defining reason I avoided analysis paralysis Btw, a related thread on why optimize for time to mailbox money

Steve Jobs said this well,
“People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas”

Let's blow it out! 1) First, list out all the choices/options/strategies you have come across. Ex - Buy and hold Single families 2-4 units Larger multi-families or mobile home parks BRRRR House Hacking Flips Student Housing Storage Units Mobile Homes Commercial

Think about your mission and vision The mission is intangible. The why behind what you are trying to achieve - the thing that will pick you up when you are feeling low. It’s the fuel! eg - Get my time back with enough passive income and give back to the world

Think about the vision? It's the what? What will help you achieve this mission? It’s the engine! eg - Get $20k/month in after-tax passive income in 3 years

Think about the values - your likes and dislikes Some questions you can ask yourself Do you want a lot of money or just enough? Do you want power? Do you want fame? Do you want the freedom to do whatever you feel like and whenever?

Do you want to work for yourself but still work? Do you want to pursue your interests and hobbies but don’t have enough time? Do you like working with other people or do you like being on your own?

Think about your strengths and constraints Some questions to ask here Do you have a lot of capital? Do you live close to the market? Do you have handyperson skills or know someone who does? Do you have time?

Do you have business and tech skills? Do you have a strong network? Do you have a great work ethic? Do you have the RE knowledge? Leverage your strengths and work around the constraints

Step 1 induces unbounded thinking so you can consider all options on the table. Then step 2, 3, and 4 will help you narrow down the options suitable to your persona and risk profile

Put simply, here is the formula Your strategy = All choices filtered through your mission, vision, values, and strengths/constraints

Summary: If you are focusing on everything you are not focusing on anything. To make radical progress, "Sharpen the axe first"

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source https://www.reddit.com/r/RealEstate/comments/qi6a3c/how_to_decide_on_a_real_estate_investing_strategy/