Should You Diversify Or Specialize Your Real Estate Portfolio?

Should You Diversify Or Specialize Your Real Estate Portfolio?

Investment Specialist, Team Denver Homes - RE/MAX Professionals. 

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There are two main schools of thought when it comes to real estate investment: diversification and specialization. 

Investors who diversify don't want to put all their eggs in one basket. They try to balance risk and reward by spreading out their investments across multiple property types or locations. Investors who specialize, on the other hand, focus on buying the same property type repeatedly. They attempt to replicate what is successful, without spreading themselves too thin.

Which is the best approach for you? Should you diversify or specialize your real estate portfolio? There isn't a simple, one-size-fits-all answer. As you build your real estate portfolio, you have to weigh the advantages and disadvantages to determine which plan is the best fit for your