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Posted about 10 years ago

The Definitive Guide to Becoming a Real Estate Investor

Do you have what it takes? Try answering this simple yet straightforward questionnaire to determine if you have what it takes to be an investor.


Do you understand the real estate market?

Are you willing to learn about it?

You should be willing to spare time, effort and resources to research about the topic at hand. This not only pertains to real estate jargon and terms frequently thrown around. Know each premise by mind and heart. Once you educate yourself about real estate, you will get a clearer view of your vision for the investment.

How well do you handle the presence of high risks?

Real estate is risky, and you have no direct control over the market's behavior. You need to prepare yourself for the leap that you are going to take. Familiarize yourself with both the private and public markets because they have different pros and cons. Private real estate allows you to manage your own rental investment while its public counterpart is not as direct because you only own your shares of the dividends through investment trusts.

Have you decided what type of investment you would like to pursue?

After all the reading and researching, surely you are already aware of the types of investments that you can pursue. If you like to focus on debt, you provide financial assistance to borrowers and get a return of profit through the interests on top of the payments. Meanwhile, investing on equity entails putting your money on a property and managing it to earn profits.

Have you analyzed your finances?

What does your portfolio look like?

When you deal with investment properties, you have added advantage. It enhances your portfolio granting that your transactions reflect good points. With hard work, this can be a good way of augmenting your income.

Can you afford the investment?

For every investment, you need a capital to fund your initial purchase. Once you buy a property, your financial spending does not end there. You need to do an overhaul, do repairs where needed and maintain the property while it sits in the market. Make sure you are financially prepared to handle all these and other unexpected twists to your journey into real estate.

Can you readily form a team for your investment?

What is your gameplan?

Make a plan that details everything that you envisioned. Once you have it, you need to discuss it with an expert or someone knowledgeable about real estate investments. Review it and see if it is feasible. It is essential that you do not skip this part because when you write down goals and aspirations, you can better pace yourself.

Do you know how to motivate and entrust work to people?

Know that you cannot work alone. Even if you are wary of trusting others, do understand that you need people who will fill in for what you lack. Try your best to form a team of people who understand your goals and are reliable. There are certain roles that you need to secure, like one for the accountant and the broker, among others. It is best that these people are also flexible and are willing to stretch their patience for you.


Comments (3)


  1. Nice post. Very good points.


  2. I agree that a team is key. Very difficult to try to go at it totally alone.