Misconceptions about a Real Estate Investor

Property Management Blog

There are lots of articles in magazines and realty websites saying incorrect things about the role of a real estate investor. Builders, developers, and landlords are often ridiculed for their focus upon profits. One also sees demands from certain sections of the society for regulation of activities of these individuals. There is a misplaced perception about real estate investors that they are money minded and their actions are harmful for the society. However, this is an extreme view that is misplaced and devoid of facts. In fact, these critics often overlook the important contribution of real estate investors in the functioning of the economy of the country. Misunderstanding about the role of investors is such that people fail to recognize their valuable functions for the economy and the society in general.

It is not entirely the fault of these critics as it is easy to misinterpret various roles played by real estate investors and their impact on the economy of the nation. This is partly because people get to see only the buildings and structures that are built and maintained by these investors. They are not privy to many other functions and responsibilities of real estate investors. In fact, most people have no idea of what real estate investors do other than to buy and sell real estate. Real estate investors are not seen searching titles or mowing the grass in the lawns. This is perhaps why outsiders think that investors just stand around while other work and make money for them. The hard work and the efforts made by investors to turn around the fortunes of a property never come to the fore. But it doesn’t mean or imply that the work and the contribution of real estate investors is any less significant or less important than other professionals working in the economy. In fact, if real estate investors do not play their role, many of the jobs carried out by other people like carpenters, electricians, plumbers, gardeners, and fitters would not come into play at all.

The most important role played by real estate investors is through their risk-taking ability. It is because these individuals can take risk that scope for work for others is created. Investors put at stake their own as well as other’s money to come up with huge real estate deals. These deals open opportunity of work for other professionals. But the initial risk is taken by real estate investors. Let us see how the brokering of a deal opens new avenues of work for other professionals.

First opportunities are created for title search companies and attorneys to complete the legal formalities. Lenders and brokers come into picture because of the need for financing. Floodgates are finally opened for all sorts of professionals like carpenters, roofing specialists, electricians, plumbers etc once a project gets a green signal form the lenders and the authorities.

The work of real estate investors often entails repairs and replacement. This necessitates tradesmen from various industries. It is the vision and endeavors of real estate investors that living space of all types from residential to commercial come into existence.  This is how these individuals play their role into making the country a better place to live, work, and play.

It can be seen how invaluable services are provided by real estate investors through their ability to take risks. If these individuals do not take calculated risks, it is hard to imagine how beautiful and affordable housing projects would come into existence. It would be a very boring and uninspiring world to live and work without the services of real estate investors. Risk taking abilities of real estate investors need to be realized and better appreciated by the people.

If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty. 

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