Your Investment Personality
In most cases, investing in real estate is a bit more than simply buying property, finding a tenant, and letting the cash flow in. Some people are very comfortable with the kinds of activities that investors face almost daily. Others find them challenging, or worse, find ways not to deal with them. If that is the case, your business will almost surely suffer.
Spend a few seconds and take a glance inward to see if you have some or all of the traits that you will find in many real estate investors.
- Do you deal well with people on a regular basis?
- Are you good at keeping records?
- Does a degree of risk not concern you?
- Do you have a good amount of free time to devote to your investment activity?
- Are you willing to do a portion (or most) of the repairs and maintenance yourself, or are you willing and able to pay someone to have them done?
- Are you willing to take an active management role?
- Can you juggle several tasks at the same time?
- Would you have the guts to evict a family of five if they didn’t pay the rent?
If you cannot answer yes to at least five of the above questions, you may not have the personality needed to be an effective investor. No matter what the late-night infomercials tell you, being a real estate investor can be a very time (and emotion) consuming activity.
If you are looking to go from a net worth of $0 to a net worth of $750,000 in a short amount of time, it is probably better that you invest your money in lottery tickets. Although there are instances where investors have made the “big hit,” and have mountains of money to show for it, the odds are stacked against this. It is far more likely that you will devote a good amount of time and effort, spread over a number of years, before you begin to see the fruits of your labor.
Real estate investing, over the long haul, can be a very rewarding activity, but it takes work and time.