Real Estate Investing, A Business Or Just A Hobby?

Depending on how you look at it, real estate investing can be considered both depending on how serious you are about the business and what your goals are. However I would caution on the latter and look at it as something you are just doing on the side. This can be a dangerous way to approach investing and in the long run could cost you a lot of money. Whether you are in this business as a full time or part time venture you must understand that it should always be treated as a business in every aspect.

With real estate investing you can approach deals in various different and creative ways and each should be analyzed like any other business transaction. What is your exit strategies? How will this effect how you make your offer? Or offers? How will you make money with each strategy? Where are the potential risks and pitfalls? And the list goes on... These are common questions any business faces on different levels but certainly similar. So real estate investing is no different.

Every aspect of real estate investing is what all businesses do to drive in leads and transact on them. How else will your business grow? A common problem with a lot of investors is they are all looking for that slam dunk, home run deal that everyone wants. I hate to break it to you but even with very effective marketing these deals may come along only once or twice a year. Sure the money you make on these deals can supplement an entire years worth of income but what is the likelihood you will land it? If you are not marketing your business properly and effectively like an successful business does, then what are the chances you will ever have a shot at landing that deal? My point is that by treating it like an actual business and not a hobby or a get rich quick scheme, you can do very well in this business. A business is all about creating systems and automation. Once you have achieved this, then you will have a VERY successful business on your hands. Who wouldn't want that? Real estate investing is no different.

Be committed to your success,

Derek Wilson

Real estate investor and educator