New BiggerPockets Article: Switching Niches Gone Wrong: Why Changing Investing Strategies Can Be Costly

My newest article for BiggerPockets is up. This one looks into the dangers of switching niches. Way too many entrepreneurs (and real estate investors in particular) are overly optimistic and get stuck with the "shiny object syndrome." As I note,

The big lesson here is that there are substantial costs in switching niches. You shouldn’t assume much, but one thing you should assume is that if you switch niches there will be a cost to it. Your first few deals are unlikely to be home runs and no matter how well you’ve studied the niche, you are going to make some costly mistakes in the process of learning it and should expect up front to pay for those.
​
"This should reinforce to you that the “shiny object syndrome” is something to avoid. Of course, sometimes there are opportunities in a new niche that are so compelling you should jump at or it makes sense to add one or switch entirely. In such cases, though, you should make sure to spend extra time learning it and understand going in you will likely incur the costs of making 'beginner mistakes.'

Of course, it's not that you shouldn't ever switch niches. You just need to do so carefully and make sure you're getting a really good deal. (Most of the time, that "really good" deal won't be nearly as good as you think when switching to a new niche.)

Check it out!