Profile of a Professional Real Estate Investor
Profile of a Professional Real Estate Investor
Chrs Parks
A Professional Real Estate Investor is one who invests in real estate full-time, and earns their primary income from buying and selling property. They typically have a home-office, although some have set up an office outside of the home. The outside office is usually a property that the investor has bought.
Many Real Estate Investors are experts and specialize in a particular type of property and/or location. For instance some investors prefer to deal with single-family homes in good condition, located only on specific streets. Specialties give investors the advantage of knowing the market values of homes and what type of repair work is probably needed. This makes them able to quickly determine whether or not the deal would be profitable.
Other Real Estate Investors prefer “ugly” houses, the uglier the better. Ugly houses are sometimes abandoned and some are in what many consider to be undesirable areas of town. Some ugly properties have fire damage, vandalism, natural deterioration or a combination of all of these factors. The advantage of these properties is that they can be purchased at a very good price. And then they are rehabbed and sold for a substantial profit.
Other Investors prefer to only buy property in one particular area of a county or town. Often these purchasers are not overly concerned with the appearance of the property, rather they are only focused on buying, as an example a property for less than 60% of the fair market value (after repairs), without paying more than 5,000. These purchasers need to know the property values like the back of their and not mind the types of rehab needed, if the profit potential is attractive enough.
The point is that most Real Estate Investors have carved out a niche and are very adept at working these niches. Some prefer single-family homes, some prefer multi-family homes, some prefer mobile homes, some prefer condos, some prefer apartment buildings, some prefer commercial properties, and some will work with any type of property if the numbers make sense to them.
There are so many Real Estate Investment opportunities that no one person can have them all. Since most investors have their own niches and buying criteria, they are usually not chasing the exact same property as other Investors.
Professional Real Estate Investors often enjoy a very comfortable life style and actually chose real estate investing because of the flexibility it offers. They also enjoy the freedom of operating their own business and the tax advantages that go along with it. The bottom line is that many are able to spend more time with their family and enjoy the wealth that they create.
In contrast, many doctors and lawyers also earn considerable sums of money, but they often do not have the time, much less the flexibility, to enjoy the fruits of their labor.
Most people investing in Real Estate started out in another profession and stumbled upon real estate investing through a book, a TV commercial or word of mouth. They were amazed at the money-making opportunities that were available, and how easy it was to get started.
Many were able to work the business part-time and make considerable money in the process. It’s not unheard of for a Real Estate Investor to earn as much on one transaction as they did in an entire year at their day job. And once you reach this point it is not difficult to decide when to quit your job and concentrate on Real Estate Investing full-time.
Chris Parks is a Real Estate Investor & Entrepreneur who created REI for Newbies http://www.REIforNewbies.com in order to teach & assist new Real Estate Investors in a step-by-step, easy-to-understand manner. Get a Free Report Here: http://www.REIforNewbies.com
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