Investing in real estate can feel overwhelming with all the options out there—multifamily, self-storage, hotels, office space, development, and more. It’s tempting to try a little bit of everything, hoping to maximize profits.
But I think that spreading yourself too thin can lead to underperformance. The most successful investors learn to focus on what they do best. In today’s article, I’ll break down why specialization matters and how you can apply this principle to your own investing strategy.
The Problem with Doing Too Much at Once
Many investors struggle with deciding whether to diversify or specialize. A mistake I’ve seen in investors is trying to be involved in multiple asset classes at once—buying a few hotels, dipping into multifamily, maybe trying self-storage, and even considering office space.
It may sound like a good way to spread risk, but it can lead to mediocre results because it’s difficult to master multiple strategies at the same time, while you’re doing them at the same time.
I’ve been there myself. In the early years of my career, I explored different investment opportunities, but over time, I realized that multifamily was where I excelled.
I saw the most consistent results, built strong industry relationships, and developed deep expertise in that space. Now, multifamily is my core business, and I’ve seen firsthand how focusing on one asset class can drive long-term success.
Identify Your Strengths and Leverage Them to Specialize
If you’re an active investor—someone managing deals, sourcing opportunities, and overseeing properties—you need to recognize where your strengths lie.
Some investors thrive in the people side of multifamily, others are more analytical. Some people are great at finding deals while others specialize in raising money. Either way, the key is to figure out what you’re best at and lean into it.
Here’s why specialization leads to better results:
- Mastery over time
By focusing on one asset class, you gain deeper expertise. You start to recognize patterns, understand the nuances of deals, and develop relationships that give you an edge over competitors.
- Easier scaling
Managing multiple types of properties requires different systems, knowledge, and teams. Sticking to one investment type makes it easier to scale and improve efficiency.
- Stronger investor confidence
If you’re raising money from investors, they want to know you’re the best at what you do. Specialization builds credibility and makes it easier to attract capital.
- Faster decision-making
When you’re an expert in one space, you can evaluate deals quicker and with more confidence, reducing hesitation and missed opportunities.
Investing is all about playing to your strengths.
Whether you’re active or passive, knowing when to specialize and when to diversify is key to long-term success. Want to dive deeper into this topic? Watch the full video by clicking the link below!
To your success,
Michael Blank