When discussing real estate investment training and education it can be said that “investing” is usually not what is being talked about. At least not in the traditional sense of putting aside money that will invest in a business or venture and make returns.
What is taught as investing is actually starting a new job with different skills sets and activities that pays in different ways.
Of the 5 ways to make money in real estate the first 2 apply in most of these cases: inherent value and add value. The strategies are designed (and intended) to generate money in the present, not over time, and they require a great deal of skill and can be time consuming. Basically, a different way you spend your time to make money, a.k.a. a job.
While you might be the owner, have control over your time and the direction of your efforts, this is not the strategy of the Professional Real Estate Investor.
A Professional Investor will occupy the right side of the cash flow quadrant (see Robert Kiyosaki’s great book) and see that others are doing the work.
They buy strategically and tactically for quality returns over time, and either hold their own properties (business owners) or invest in the deals of others (investors).
They look around for quality investments, and when they find them they invest their money into them.
Here are some qualities that accompany good Professional Investors:
- They leveraging their team, not just themselves;
- They invest for the long term;
- They use leverage;
- The investments are designed to work well through the hold period, (not break down and avoid operating problems);
- They buy sustainable investments which don’t require lots of time and/or money to continue running.
See how your mindset and/or portfolio fits!
