What type of investor are you?

I want to share a few observations on the types of investors I have encountered, and from those observations, I hope that you can add to my list, or see where you fit in.

1. The spreadsheet investor - I feel this is the type of investor we all aspire to become in the beginning. We want to be able to analyze every detail of a deal and put it all into some spreadsheets, and bam we can see the future in the numbers. An investing god with all the answers.

Becoming this type of investor is inevitable if you have the time to get a large number of deals closed, but let's be real, the vast majority of BP members are not going to accomplish the number of transactions it takes to become a master of real estate.

2. I want to make some extra cash investor - This investor is the regular guy or girl that wants to do something smart with their money. They work hard 9-5 and want a little extra cash in the bank so they can enjoy life a little bit more.

I feel this is where a lot of individuals make the mistake of thinking they have to become the spreadsheet investor, quit the 9-5, and jump in head first into real estate. You don't!

This mistake can (and has) lead to disaster for a lot of people.

Telling your boss to shove it is very tempting, but your job is an asset that can be used to build wealth over a stretch of time if you are patient.

A regular home buyer that buys a home today will accumulate an average of 40-50k in appreciation over the next five years between mortgage paydown and market prices rising. This buyer is a person who usually knows little of real estate. They depend solely on a REALTOR to guide them through the real estate process. So this leads me to a question for you:

Why do we feel the need to complicate things for ourselves?

The investor who wants to make a little extra cash each month has the advantage over the average homeowner. How?, Because you know the power of real estate. In the time a typical homeowner has purchased 1 property, you can buy multiple properties.

So guess what, that 40-50k the regular homeowner accumulated has turned into 200-250k or more for you, plus any positive cash flow that is going into your pocket.

So again I ask If you don't have the time to learn how to be a spreadsheet investor if you want to keep your life simple if you don't want to expose your family to the risk of you crashing and burning in real estate.

Why are you complicating things for yourself?

Work with a professional REALTOR who has the real estate knowledge you need, buy some pretty houses that will attract ideal tenants, work with reputable property management, be stress-free and happy about the extra cash in your bank on the 1st of the month, and be comfortable with your family. Investing will only sink you if you let it.

No matter which investor you choose to be, I wish you luck in your endeavors. Also, keep in mind this is my personal opinion, not everyone will agree with it. I am a believer in taking risk, but not too much risk and keeping my stress levels as low as possible while enjoying my life in the present.

Others believe they should jump off a cliff, and build the plane on the way down. While "sacrificing" pretty much everything that will make you happy right now. In my opinion, this leads to a crap life, and an endless chase of a "better future." but I think that is a topic best left for another blog post.

Share your thoughts with me in the comments :)