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Don Konipol
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#5 All Forums Contributor
  • Lender
  • The Woodlands, TX
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What it Takes to be a “FULL TIME” Real Estate Investor

Don Konipol
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#5 All Forums Contributor
  • Lender
  • The Woodlands, TX
Posted Jan 21 2024, 06:40

What are the attributes necessary for becoming a “full time” real estate investor?  We’re not talking about being a flipper, wholesaler, broker, or having a real estate “job”.  We’re talking about someone who makes their money INVESTING in real estate and real estate related assets.

So, after 45 years in the real estate “game”, here is what I believe is necessary

1. Sufficient education

2. Sufficient experience

3. Sufficient Capital

4. Sufficient Knowledge

That’s it!  LOL.

There’s a WORSE WAY and a BEST WAY to try to obtain items 1-4 above

BEST WAY: College or Professional Association courses in real estate (real estate license course as a base) and work experience for a REIT or other professional real estate organization and capital saved or equity raised from private parties with a MODERATE amount of debt leverage and or utilizing creative financing with low interest rate debt (may be highly leverage)

WORSE WAY; Any guru courses or mentorship’s combine with high interest debt. 

What do YOU think? 

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Jay Hinrichs#1 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
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Jay Hinrichs#1 All Forums Contributor
  • Real Estate Broker
  • Lake Oswego OR Summerlin, NV
Replied Jan 21 2024, 07:07
Some of my most successful clients have done exactly as you described they had a JOB with a REIT or developer and learned their craft before launching out.

Trying to get this type of education paying  companies that just sell short term training is very hit and miss.  I also have clients that have done well with Guru type training but its 1 out of 10 at best that takes that training/education to the next level etc.. But the ones that did had very good W 2 so they had the cash and income to qualify for loans.

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Alvin Slate
  • Real Estate Agent
  • Atlanta, GA
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Alvin Slate
  • Real Estate Agent
  • Atlanta, GA
Replied Jan 28 2024, 22:36

That makes perfect sense. Real estate is a long game and there can be a lot of curve balls so if you have those four things you're best equipped to navigate the journey. 

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Adam M.
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  • Texas (DFW & West Texas)
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Adam M.
  • Investor
  • Texas (DFW & West Texas)
Replied Feb 6 2024, 07:47

Great post @Don Konipol

I agree with your four points: i would also add 5. Sufficient Integrity! In this industry, people know people very quickly and reputation is everything-- when working alongside others on their financial futures/supporting local economies, truth is the hallmark of success.

That being said, regarding best and worst ways: some of the people I look up to the most in our industry traditionally have quite diverse backgrounds. From working on Wall Street to just diving in when working a 9-5 job and educating themselves tirelessly at every given opportunity... I don't think there is a set prerequisite? However I do think that a college or professional association course paired with working professionally in CRE can align individuals with technical skills and expertise faster than if not.

One thing I do agree with are the "gurus" we tend to see... beware!

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James Hamling#3 Real Estate News & Current Events Contributor
  • Real Estate Broker
  • Minneapolis, MN
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James Hamling#3 Real Estate News & Current Events Contributor
  • Real Estate Broker
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Replied Feb 19 2024, 15:00

Honestly @Don Konipol, "What it Takes" in my opinion is GRIT like diamonds! Obsessive tenacity to point of clinically insane obsession. And a ready willingness to suffer, SUFFER for it! 

Truth is everything else is just details "how". 

Base-line, it's about a ferocity of self determination more powerful than the obstacles that will come. 

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Stephen Seals
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Stephen Seals
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Replied Apr 27 2024, 07:42

I agree with you for the most part @Don Konipol.  I do think that one important factor is the right attitude and the cajones to take on some risk and see it through.  I say that because I have spent over a decade managing risk for a large multifamily lender, and as a result, I have found myself quite risk averse - to the point that I am just now getting into investing in real estate for myself.  

I regularly deal with investor clients who have millions in cash from their real estate investments, as well as large portfolios of real estate owned.  Obviously, at this point, they now have everything on your list.  However, a common theme I hear when I ask them how they got into this business - they didn't know enough to be really risk averse.  In fact, many of theme just sort of fell backwards into it.  And not just a few - a lot.

Having said that, the willingness to take the leap can sometimes be the biggest barrier to entry.  Fortunately, I am pushing past that one.  Better late than never...