I’ve heard both the “fishing” analogy used above and I’ve heard the “firearms” story when discussing the answer with other successful investors. The question being: “Should an investor pursue only one type of deal, (niche) or should she take on multiple… or many?”.
Obviously, the “hook” or “rifle” approach would have you only doing ONE type of deal.. The “net” or “shotgun” method is when we take whatever type of deal the lead dictates as long as the numbers work.
So which is best? Should you be signing contracts on anything the numbers “work” on, and do multiple types of deals, or should you concentrate on just one? It’s not an easy choice to make…
One Niche,Two Niche, Red Niche, Blue Niche!
Obviously, there are plenty of factors that determine the answer. In almost every case it’s going to depend more on your edumacation, experience and expertise. Even if you “know how” to flip a lease-option property, it doesn’t always mean that you should, if your main focus is wholesaling!
You should start with the method you have the most training with, but even if you’re familiar with more than one, should you pursue them? In addition to you having the ability and know-how, do you have the time to take on multiple types of deals? How much more could you focus on your short sale business if you weren’t doing subject-to deals?
Watch the video to know whether you need to use a hook or a net?