If you have decided to become a Real Estate Investor you have made a good choice. In order to be successful in this decision there are a few questions you need to ask yourself:
1) Do I want to be a fulltime or part-time Investor? – The fulltime Investor makes the majority of his income by his activities in real estate. They don’t have another job and focus on doing real estate. The part time Investor has another fulltime job and does this on the side. You can benefit in either direction, you just have to decide which way you want to move.
2) What kind of Investor do you want to be?- There are various types of real estate (single family homes, multi family homes of 2-4 units, apartment buildings, office buildings, land, etc). Not every investment is ideal for every investor. You have to decide what is your personal comfort level and then pursue that focus.
When I was taking my real estate classes our teacher was a woman who owned 40 single family homes. She told us she chose homes because the tenants handled most of the maintenance and the turnover rate was low. She had developed a system for managing her homes and it worked for her.
I met another lady who was a fulltime schoolteacher and part-time investor. Her and her partner both had full time jobs and decided to buy a house, fix it up and sell it. She only sold 2 houses a year but consistently made over $30,000 a year. For her this was great.
I personally have owned single family homes, multi units and apartment buildings. I prefer apartment buildings because you have your tenants localized, you can generate impressive rents and fix apartments without having to travel to different properties. I know investors who hate apartment buildings. You have to decide what type of investor you want to be.
3) How much money do you want to make from your Real Estate Investing?- The answer to this question will help you to determine what you should invest in. Single family homes can be good rentals but if you are looking for a large cash flow you will need to rent a lot of them out. $125 per month net income from a single family home would be great. If you want more income then you may have to look at moving up to multi family properties or apartment buildings. Office complexes can offer great income but require professional management to optimize the return on your investment.
Being a Real Estate Investor is a great career. Just decide on what type of Investor you plan on becoming. Then just do it.
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