We have all heard that “ninety percent of all millionaires become so through owning real estate. “More money has been made in real estate than in all industrial investments combined.”
If you have recently thought about investing in real estate to either round out your retirement portfolio or simply earn some extra cash, you have chosen a potentially great way to make extra money. Your monthly rental income can produce a healthy personal cash flow, and your property could appreciate in value over time. However, no investing strategy is as easy as it sounds, and if you are just getting into the real estate investors game, there may be a bit of a learning curve.
So before you tap in to this world of real estate investing, you should know that this physical asset class offers more than one source of income as well as more challenges than other virtual asset classes out there, but it depends on what you take in.
There are generally 3 levers to monetize an investment or business. These levers are Time, Money, Efforts or Expertise. Depending on what and how much you bring on to the table, you make the returns on your investment.
Thankfully, as a Real Estate Investor you can choose to be either an Active Investor or a Passive Investor as on market practices.
As a Passive Investor simply invest your money in a real estate deal, but you’re not involved in any way in the management or day-to-day operation of the property. You bring Money to the table.
If you are a busy professional or a business owner, this is by far the best option for you to generate wealth. Fortunately, market practises dictate that you receive a fair amount of share and quantity in a real estate investment deal, as opposed to other business deals or angel investing, where you only receive a small amount of equity and must still put in the work.
Take Advantage of Active Real Estate Investors! They bring a lot to the table and can run the show for you.
1.Sourcing, Analysing & Negotiating Best Deals:
One of the most difficult parts of any real estate or business deal is finding a good one. Can you tell whether a deal is a good deal or not confidentally? That is a skill and practice. Good deals don’t just fall in your lap, they are sourced, analysed, negotiated, and created. If you are a real estate investor, you should know where to shop for high ROI deals. You can not just rely on realtors or market listings because money is made in buying.
PS- As Active Investor ourselves, we have created a marketing machine to source discounted off market deals that will never come on the market. You can join our Investors Club to get private access.
2. Have The Best Power Team:
Real estate is a team sport,You don’t necessarily need employees, but you will need independent contractors and advisors who can help in their areas of expertise. Your power team is the main ingredient of success. Building and Managing this team and keeping them motivated to run the show is the key. An Acitive Investor brings network and contacts with highly skilled professionals to the table. These involve:
A) Fiduciary or critical relationships with people who assist you with important, ongoing tasks.
1. Attorney specializing in real estate and/or business
2. Certified Public Accountant (CPA)
3.Lender(s)
4. Mortgage lender – for long-term financing
B) Service Circle – functional relationships for tasks you’ll need for your investments
1.Closing agent/title company
2.Home inspector
3.Electrician
4.Plumber
5.HVAC technician
6.Handyman
7.Painter
8.Yard service
9.Pest & Moisture Control
10.General contractor (for bigger remodels and pulling permits)
3. Construction & Project Management:
There are numerous real estate investing strategies out there, but if your strategy involves some kind of updating or renovations to the property, this will require construction knowledge and project management skills. From hiring the best skilled labour at the best price and selecting the most cost-effective materials to handling and managing the project on a daily basis, this is high-skilled work with a high ROI.It requires time, expertise, and of course, sweat.
4. Profits, Responsibilities & Better ROI:
An active investor is just like a founder or a businessman who has one responsibility in their core is that their investors should make money. Because if the money is raised from investors for any, it comes with a price tag and responsibilities. An active investor has to make sure that there is enough meat on the bone for the passive investor(s) before locking up any deal and raising capital.
Active real estate investors need to plan for ongoing, upcoming, and unforeseen expenses that could or might occur at each rental property.
Think of it like an airplane ride.
The active investor is the pilot. The passive investors are passengers.
- If you are looking for highest ROI on your capital without trading time and sweat, Join our Investors Club. Fill out the form with your numbers $$$.We are known for Qualitative over Quantitative deals. It means Super Lucrative Deals.