Shiny Object Syndrome

[Sanford Myers]

I am a new investor looking to get started. I live in the Upstate of South Carolina between Greenville and Clemson. I am minutes away from three Universities (Clemson, Furman, and Anderson) with opportunities for student housing. I am minutes away from the Appalachian mountains and three large freshwater lakes (Hartwell, Keowee, and Jocassee) with many more small lakes and recreational areas nearby, giving me opportunities for short-term rentals. This area is experiencing huge growth with industry and population, giving good opportunities for single family rentals or small multi-family rentals. There are also a lot of small mobile home parks in the area that are either for sale or have homes that could be repaired and flipped or rented. My son-in-law and daughter also want to get involved in real estate investing, but don’t have a lot of investment capital yet, so they would like to do some flips with me to get some traction. As you can tell, I have shiny object syndrome and can’t seem to focus on one thing to get my laser focus and begin making traction in one direction. My ultimate goal is to build a portfolio that will provide income to my wife and myself for the rest of our lives while providing the same for our two daughters and their families even after we are gone. So...what suggestions do you have for narrowing my focus to one area and quit being distracted by everything else out there?

[Corbin Loveless]

Sanford- First of all, we've all been there. Every time I listen to a podcast and hear about another investor's success, I'm tempted to jump in feet first to a new strategy. 

My recommendation is to begin with the end in mind. Your words on your ultimate goal- "My ultimate goal is to build a portfolio that will provide income to my wife and myself for the rest of our lives while providing the same for our two daughters and their families even after we are gone."

If it were me, I would use short-term rentals to supercharge my cash flow with my first several investments (I personally would buy STR cabins in the Smokies). Then I would balance my portfolio with another type of real estate investing like multi-family or single-family homes as long-term rentals. If you want to involve your son-in-law and daughter, I recommend helping them purchase a single-family home to live in that can be rented as a long-term rental once they move out. If your son-in-law and daughter purchase a new home each year at 5% down (minimal cash needed), your family will have a portfolio of 10 long-term rentals and several of your short-term rental investments. You'll have a balanced portfolio to leave behind for your daughters and their families.

The good news is, that real estate is forgiving. Everyone who has started investing in the past 3-5 years has benefited from massive appreciation and rental income growth. The most important step is getting started- take action! The best time to buy real estate was yesterday!

All of this is just my opinion. I'm a real estate agent in TN, not a lender or financial advisor. Feel free to direct message me if you want to talk strategy, I never get tired of talking real estate!