Seldom Asked Question #7
Can anyone be a Real Estate Investor? From the 30,000-foot view the answer is “Yes”, anyone is capable, but when you get into the nuts and bolts of the business it becomes apparent very quickly that the skill sets needed to be a real estate investor requires a mind and soul of an entrepreneur. We are not all self-starters, or contain the skills necessary to both emotionally and mentally steer the ship alone. According to a recent INC.com article, it is believed that only 14% of the U.S. have the necessary characteristics of a true entrepreneur. This is far from a deal breaker however, as there are many opportunities in the business to joint venture and partner up with others who contain the skill sets you may lack which has the added benefit of bringing more skin and minds into the game.
As Gary V says, we all must conduct a self-audit to identify our strengths and weaknesses and then move forward by outsourcing and networking with those who do. If your mind works well with analytics and mathematics then you may want to pursue a residence in acquisitions and deal analysis and leave the rehab process to someone more in tune with the construction world, or vice-versa.
Taking a minute to self-analyze your strong and week points and becoming completely self-aware of what they will help you determine whether you should go at this alone, or partner with others already doing it. What you see on TV is usually a huge team of people behind the scenes, which can trick the viewer into believing that flipping a property from Acquisitions to “Sold” is much easier than it is in reality. I’ve met investors who didn’t end up having the stomach for the rehab process and discovered they were much better off wholesaling. The wholesaling has its own challenges and skill sets that investors need to be educated on.
You may realize that your strengths lie in face to face connections and may discover that becoming a broker or an agent is best the best fit for you. Quality of life is always more important than the size of your pocketbook so forcing yourself to wear a hat that doesn’t fit is never a good idea. If you are ready to
P.S. If you realize you are not an entrepreneur, find others to fill in what you lack by hitching your wagon to theirs and get moving!
Robert Orfino, 2016