There are two kinds of real estate investing, each of which has its own merits. Today I’ll give you the basics of each so that you can better understand how to become an investor yourself.
In an effort to help you continue to love where you live, today we’ll be diving into what it takes to become a real estate investor.
There are two genres of investing you can pursue: active investing and passive investing.
As you might assume, active investing involves taking a hands-on approach. Active investors are categorized as either wholesalers or rehabbers (those who fix and flip homes), and they’re out working part- or full-time, finding deals, meeting with sellers, locking in contracts, and possibly doing some physical work (as with rehabbers).
Passive investors, on the other hand, use real estate as a vehicle to grow their portfolio and generate passive income. This might include buying a multifamily property and hiring a property manager to run it, or possibly buying residential homes and renting them out.
If you’re thinking about becoming an investor, the first question I always ask is, “How much time and capital do you have access to?”
Investing itself is not inherently risky—it’s the investor who is risky.
The ‘capital’ part shouldn’t scare you—if you follow me on social media, you’ve probably seen ads for becoming an investor with zero money down, and that’s actually possible. I started learning about investing way before I ever became a Realtor, so if you’re curious about starting the process, I’d love to discuss in greater detail the various routes you can take.
We’ve actually been working with a very successful passive investor who identified a niche in our market: he has invested in tiny, modular homes and mobile home parks, and his ROI has been killer.
If you’re someone who doesn’t want to do any hands-on investing, take a look at this video of my interview with a passive investor to learn about some of the real estate benefits of working with our group.
For those more interested in active investing, I highly recommend that you start with educating yourself about real estate. Investing itself is not inherently risky—it’s the investor who is risky. Ignorance is the most expensive currency, so don’t trade in it. You have to know what you’re doing, and we can help guide you into some of the good training and mentoring programs available. Lone wolves don’t make it very long in real estate investing.
No matter which kind of investing you’re most interested in, reach out to us. We can set up a phone consultation and figure out where you are now and what can be done to help you reach your goals of becoming an investor.