The New Year has begun, and many new people must have made their entry into real estate investing by now. These are the people who have been dreaming about all the profits they can earn from this profession. Of course, it is a very profitable profession but not all individuals are cut out for real estate investing. Who are these people? Let us find out in this article.
It is not for those who want to become rich overnight
One can earn decent amount of money through real estate investing. However, it is not a quick process and building wealth from real estate takes a long time, especially when one takes the route of ‘buy to hold’. If you are in a hurry, you can try your hands at flipping where you buy at lower than market value, renovate, and sell off to book your profits. However, building long term wealth from real estate requires buying and waiting for a long time.
It is not for those who do not want to become involved
Real estate investing requires the investor to be fully involved with the process. In fact, most investors have a humble beginning where they are expected to do many jobs themselves to keep costs down. You do not qualify as a real estate investor just because you have bought a property. Yes, you can hire services of a property management company but even then, you must manage this company to get high returns on investment. There is no way you can succeed with hands off approach in real estate investing.
It is not for those who want to invest and sleep peacefully
Real estate investing in not a method of investing like a bank where you can park your money and forget about it. If you do not want to work at all, why taken pains of becoming a real estate investor? Just buy annuities from a bank and get a fixed return after a specified time period. If you want to become a real estate investor, you must work to earn high returns on investment.
It is not for those who cannot work as a team
Real estate investing requires working with other people. You must develop a team including contractors, brokers, real estate agents, property managers and lenders as you will require the services of each f these professional from time to time. You will find yourself working with appraisers, tenants, other investors, and even attorneys to keep legal troubles at bay. Real estate investing is teamwork where the investor is one of the cogs of the wheel.
It is not for those who are not ready to learn
Real estate investing is a profession that has many variables at work all the time. It also has a learning curve that requires making mistakes and learning from them. If you cannot accept your mistakes, learn from them, and move ahead, you cannot become a successful real estate investor.
Now that you know about people who will struggle in the world of real estate investing, you must be wondering who the people are best suited for this profession. The short answer to this question is that it is a field for people who are willing to learn and work hard to make their dreams come true. You should be able to take decisions and work hard to turn them into profitable ones. You should have the ability to spot profitable properties and people who can work as a team for you. If you can do all this, real estate investing is a field where you can make lots of money over a period.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
