Welcome back,
Let me first start off answering this reader question by disagreeing with it. The question, “What type of real estate investor should I be?” insinuates that you can and will be investing in only 1 type of property forever.
There are hundreds of ways to make money with real estate. Some of these methods involve a good deal of time while some real estate investing strategies require capital to get started. Likewise, some methods require both time and capital. All of the methods I can think of require education and training.
If you are over 30 years old than it is safe to say you may have changed your career a few times since leaving high school. You may have wanted to be a doctor, then changed to a law degree, then changed to a business education. If you too, are a serial career hopper than please realize that you only had enough insights and experience to change careers once you were exposed to one in detail.
Personal example: I was pursuing my medical degree when I had the overwhelming urge that I did not want to deal with sick people or a boss every day for the rest of my life.
Real estate investing in no different. Only after having a clear picture and path to take in real estate can you decide that this “is” or “is not” the right choice for you.
Personal example: When I got started I was competing against countless other investors in my market looking for traditional house behind on payments or in foreclosure. The high degree of needed capital and the stiff competition drove me to pursue other niches. That is when I fell into mobile home investing; the passive cash-flow, low competition, low barrier of entry, and high ROI fit my goals perfectly.
How to proceed forward when you are unsure how or what properties to invest in for profit?
Step 1. Make a list of all the types of real estate investing niches that you have heard of. Here is a small list you may use; single family homes, raw land, duplexes, triplexes, small apartments, large apartments, REITs, commercial properties, mobile homes tax liens, wholesaling, retailing, lease options, property management, hard money lending, being a Realtor, foreclosures, mortgage assignments, rentals, and many more strategies and niches not listed here.
Step 2. Know your goals. Fast cash, Big pay-days, and/or long-term passive cash flow.
Step 3. Learn more about the methods that interest you the most. Understand a clear path moving forward. Talk to a seasoned investor specializing in your desired niche and gain clarity from them. Ask these knowledgeable and experienced investors to outline a typical path they could describe leading you from your current position [in life] to your first deal in this niche. Gain clarity on the skills needed and steps-of-the-path on each niche that interests you. Tip: If a mentor or local investor cannot tell you the steps needed to get to your next deal look for someone more experienced.
Step 4. Take action with one or two niches at a time. Eliminate the ones you don’t like or that are not producing results in your area. Understand why some methods work for you and why some niches do not work for you. Remember that if anyone else has had success in this field then there is no reason why you cannot either.
Step 5. Continually be looking for motivated sellers or all types of properties. When you find a seller and property you are unfamiliar with I encourage you to partner with someone local and experienced to help the seller and complete the deal.
Step 6. Be aware of the happiness and success you are having. If something is not working don’t take this as fact. Keep trying new things and asking for help until you are happy in a real estate investing niche (or two) you love and are successful with.
To gain an understanding of the steps needed as a mobile home investor seeking cash-flow click here.
Love what you do daily,
