Having met thousands of real estate investors over the years and seen so many come and go. I have found that there are three levels of investors.
Level 1 – Wanna Be Real Estate Investor
These investors have many ideas but they rarely take any action on getting everything off the ground. They keep looking at new shiny objects and get interested in different strategies have difficulty following through on anything.
Level 2 – Solo Investor / Hobbiest
These investors focus on gaining enough education to get their business started but they are focused on completing every task within the real estate strategy they focus on. They are able to generate money and do well over the long term, but then they realize that they are losing a lot of time doing it.
Level 3 – The Professional Investor
These investors focus on part of the business that you’re a most passionate about., Whenever they are unsure they hire an outside specialists or other companies that fous on the skills or tasks that the professional investor is not interested in doing.
In order to make the move from solo to professional investor, you need to focus on developing a business that will continue to run when you are not there. The professional investor works to ensure that there are policies, guidines, rules, and processes.
The professional investor hires people smarter than they are in areas that they are weakest. They have the experts they hire document the process, and create procedures to do the right things the right way. They fovus on having a business that runs efficiently and cost effectivly. The professional investor leverages tools and technology in their business to easily find what are the key proformance insicators of those who are working in their business.
Those who succeed and are not stuck in the day to day grind of property management, maintenance, asset acquistion or asset repositioning. They have created a team around their real estate investing business that helps the professional investor thrive.
Quentin D’Souza is the Chief Education Officer of the Durham Real Estate Investor Club. Author of The Property Management Toolbox: A How-To Guide for Ontario Real Estate Investors and Landlords and The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate.