There are four basic types of real estate investors. Let’s see which one fits you best.
Safe/secure investors own their homes. Little by little, month by month, they made that first-of-the-month mortgage payment and now they sit atop a very nice nest egg. They don’t rule out altogether the idea of investing in properties, but they are extremely uncomfortable about using their house to collateralize another mortgage. To them, the risks will usually outweigh the benefits, and they won’t get into the game unless an opportunity is a virtual slam-dunk. Besides, they’ve got their retirements to think about.
Moderate investors often own one or two additional properties as well as their homes. They like to take small, educated steps. To them, their investments seem lackluster. The grass is always greener in other people’s deals. But then again, they hold very safe properties in very mature, stable areas. Not much growth in value year after year and rents are pretty staid too. But if they decide to sell, they know they’ll at least get back what they put into the property.
Risk takers put possibilities ahead of potential drawbacks. For them, money is the means to something better, rather than the goal itself. On balance, they make more deals, and more profitable ones, than moderate investors do. They look at every deal from every angle and can discern the hidden value in some properties, and the hidden dangers in others.
Full-time real estate investment freaks eat, sleep and drink real estate. When they are not structuring deals for themselves, they are doing so for friends. Unlike some people, who never see opportunities, freaks see so many that they have to avoid tripping over them www.ibettor188.com. Investment freaks tend to have a solid foundation in real estate and take action quickly. Their outlook is that they have nothing to lose and everything to gain.
It is easy to see that these four niches are occupied by different personality types: cautious, content, bold, fearless. Instead of four different type of people, however, you can view them as four levels of real estate investment through which people can pass, from one to four, as they develop their skills.
I’m not saying that everyone passes through these four levels, but as you develop as a Bubble Proof real estate investor, these are the levels through which you are likely to pass.