What is the difference between an investor and a landlord? A Landlord owns rental property and has a tenant live in the property and pay rent. Many landlords are accidental – inherited the property, not able to sell, lazy, etc.
Whereas, an Investor is someone who has a plan, is building on it and is a sophisticated business person. An investor has the foremost goal of building wealth through real estate and having systems that support and grow passive income consistently. This takes keeping an eye on their properties and the numbers behind them – expenses, rents, management costs, etc. AND handling maintenance and tenants. Most importantly, keeping up on trends so that the property is maximized to its highest potential.
You may have heard of the book by Michael Gerber, The E Myth. It’s all about working ON YOUR BUSINESS versus IN YOUR BUSINESS. This applies to real estate investing all the way. Many investors have full time jobs and real estate is the part time hustle. It doesn’t have to be a “hustle”. It can be smooth and easy with the right team in place made up of consultants, Realtors, property managers, etc. That’s the systems I’m talking about. I once traveled all summer in an RV – still owning 100 units of rentals; with the right people a phone call away money was being generated while I was having FUN!
Operating with ease is in the formula you use for obtaining and managing your rental property. Underneath it all the real driver of success is your WHY…your personal, heartfelt reason for building a portfolio, or wanting to make money in real estate. You see, investors are in this for something.
Have you identified your WHY? Clarity and purpose are huge motivators, AND you need a structure around it all to get to where you want to go. It may be to buy one property per year, or to get that first 4- plex. If you need help figuring out your WHY…that’s where a coach or some training may help you define what lights you up. It’s those people who have a passion for real estate that are unstoppable. Many of the successful investors I work with have the “fire in the belly” for finding and creating great properties and income streams. They love seeing the passive income and some are even willing to put in the sweat equity to accelerate the process. Are you one of these “Passionate Investors”? If so….what’s your WHY?
PS. I love how young millennials have no fear. They see the potential of real estate investing and “go for it”. We could all learn from that great spirit of adventure to invent a new pathway to wealth through real estate. Contact me for a private strategy session if you are ready yet need guidance to hit the road running on real estate investing.