Discover Your Real Estate Investor Profile 2/1/2013

Seasoned real estate investors will usually have a clear understanding of the investment criteria they want. They know what their goals are, they understand the types of properties they need to focus on, and they know their financial limitations. For newer investors, however, these questions might be harder to answer if only because they don’t know where to start.

There are 5 basic types of investors. Understanding which group you fall into is the key to determining which direction your real estate investment strategy should head. The following is a list of the 5 investor types and the criteria they’ll best respond to when it comes to real estate investment.

1. The First-Time Investor

The First-Time Investor is often surprised to find how simple real estate investing is and is sometimes hesitant to jump in. To alleviate these concerns, First-Time Investors should concentrate on properties that need less work and are in more desirable areas in order to eliminate some of the variables.

2. The Move-Up Investor

An increasingly common investor type, Move-Up Investors are those who upgrade their primary residence. Instead of selling their current home, however, they keep it, rent it out and generate cash flow. Move-Up Investors have the benefit of intimate knowledge of their investment property.

3. Portfolio Investor

Portfolio Investors own one or more investment properties and are interested in expanding their investment reach. For the Portfolio Investor, many of the mechanics of real estate investing are no longer foreign, making it easier to find other opportunities. The Portfolio Investor will begin to consider properties beyond the single-family home.

4. Performance Investor

Chances are, Performance Investors have a high level of comfort with the investment process and may also have a higher net worth. They are able to use their net worth to buy a wider variety of properties including those in the luxury, resort and commercial portions of the market. Performance Investors are also in a good position to leverage their assets and grow their wealth quickly.

5. The Rehab & Resell Investor

Sometimes called flippers, Rehab & Resell Investors like getting their hands dirty and making quick but substantial improvements to properties that may have fallen into disrepair. The risk can sometimes be a little higher in this type of investing as the properties are not always in good shape, but the reward can be high as well.

As someone with the Certified Investor Agent Specialist designation, I can help you determine your investor type, explore opportunities for investment in the market, and equip you with the knowledge and resources you need to build wealth. Please contact me today to get the process started!

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