Versatile Tool Belt vs. Nail it and Scale it

[Justin Patterson]

In the quick turn real estate business, I'd like to hear some feedback from those that have successful real estate businesses.

There are conflicting viewpoints of advice, and I see both sides of it. Being the end of the year, I've been preparing for next year's projections and plans, and I'm a little torn. Here is what we are told that differ from one another:

1) know how to do multiple types of transactions, this way, you can take advantage of all leads and not miss out on any deals. Equity or terms, and work the strategy from there. Know how to do all types of investing, such as wholesaling, creative financing, rehabbing, and options.

2) choose one particular niche strategy that is easily scaleable, simplify it, create systems, automate it, and outsource it. Nail it, then scale it. Go virtual into different markets..... blow the thing up.

For me, I think I am active in both. I concentrate on #2 as my business, however, take advantage of other things that come my way. However, the more I utilize #1, the more systems, processes, management, and energy involvement there is, which ultimately takes the focus off of #2; examples are: managing private lenders, managing rehab projects, managing tenants and seller financing buyers, short sale processes, etc... I can take my wholesaling operation into other markets and not have to change a whole lot, and not have to mess with other areas of the business.

What are your thoughts?

Let me clarify that I am talking about owning a business with multiple team members, that is flipping properties and creating excess cash flow. I am not talking about investing in passive assets here. The goal here is to produce as much cash flow as possible in the shortest time period as possible in order to buy those passive assets.

I'd love to hear your feedback! Thanks a lot.

-Justin