There is no such thing as a typical real estate investor. Every real estate investor has their own goals, their own game plan and their own area of expertise. The one thing all real estate investors have in common is a belief that in real property ownership is wealth. Perhaps, Will Rogers got it right when he said about real estate, “they aren’t making it anymore.”
Real Estate investors develop land, purchase one family residences, multi-family buildings, office buildings, industrial property and office buildings. While most real estate investors specialize on one area of expertise, others wear different hats depending on market conditions.
Experienced and successful real estate investors begin with a plan. Just as one would develop an investment strategy for equities, the real estate investor should do their homework, set their budgets, arrange their financing and define their real estate investing personality.
A typical error of novice investors is to put the cart before the horse. Investors who buy a property and then try to shape it into their plan or build a plan around that property have it backwards. Savvy investors define the plan and find the properties that fit into the plan.
Real estate has allure, personality and sex appeal. Yet, investors are not swayed by the thrill of a transaction or by a property’s possibilities. Executing the plan eliminates the emotional factors that can arise in property offerings.
David Crowe, a Chicago real estate investor sums it up; “People fall in love with a property. Who cares about the property? I fall in love with a motivated seller.”
Crowe has it right. There is nothing like a motivated seller to ignite the flame under your real estate investment strategy. Develop your investment strategy, stay within its confines and stay true to your numbers. The really good news is that these days, they are building those opportunities and there are plenty of motivated sellers.