Business people have different ways of making money. It can be a traditional business, investments, or speculation. One is not necessarily better than the other. Depending on how it is handled, any of them can make a person some serious money or be an epic failure. There are certain risks involved in any money-making venture, especially when it comes to real estate investment.
Fact: real estate is a lucrative industry.
The supporting statement to this fact: as long as it is handled well. The risks involved can be kept to a minimum if a person has a good understanding of the market, the different strategies, and the different factors that affect the market.
Fact: getting involved in the real estate industry is not for the faint of heart.
For the same reason that makes it a lucrative industry, the risks involved can either rake in a fortune for you or send you in a financial downward spiral.
The risks can put a lot of pressure on a person and discourage a potential player from proceeding. But to the determined ones, there are a couple of ways that you can be involved in the industry.
Entrepreneur or Investor?
We’re all pretty familiar with what an investor does. This is the person that puts their money into a plan or business with the expectation that they will get a good return for their investment. Given this definition, a real estate investor invests in a property to gain profit in the long run.
A real estate entrepreneur, on the other hand, works differently. While the entrepreneur and investor are, essentially, one and the same, there are certain caveats that we should take note of.
Entrepreneurs are, by definition, innovators and movers. They are ambitious and highly-motivated investors that are more risk-tolerant compared to an ordinary investor. They possess the innate ability to see an opportunity where most folks only see negativity and turn it into something profitable by creating value for it.
The real estate entrepreneur takes being an investor to the next level. Where the investor keeps his focus on the day-to-day tasks of operations, the entrepreneur often sees the bigger picture and aggressively takes action to make that a reality.
The Real Estate Entrepreneur’s Characteristics
Becoming an entrepreneur involves making certain adjustments in the way you think and live. Here are a few things that make entrepreneurs stand out and successful.
They have an entrepreneurial mindset.
Entrepreneurs are not just fixated on making money. To them, profit is not the end-all and be-all of their existence. They recognize that they are meant to create opportunities to change lives and make things better. This is the reason why they continue to dream and innovate.
They have a great desire to be educated in real estate.
Entrepreneurs maintain a learner’s mindset. They are not fully satisfied with the status quo They are always in search of a greater understanding of things and how they work, of people and why they behave like that. This drives them to learn more about the real estate industry and consumer behavior and how each and everything and person involved fall into place.
They see the benefits of building strong and significant partnerships and teams.
Entrepreneurs understand that big dreams require teams. They are not afraid to seek help from those who they believe will run with their vision.
Honestly evaluate oneself
They are honest enough to acknowledge their weaknesses and limitations.
Identify the business’ needs
They have the ability and foresight to know what works and what doesn’t and what a business needs in both the long and short-term.
Add key people to the team
Since they know what they lack as individuals and as business people, they are not afraid nor insecure to get others on board who have strengths in those areas.
They live consistently disciplined lifestyles.
One of the things that really set them apart from the pack is their discipline. Their dedication to their goals fuels them to live consistently in all aspects of their lives. This discipline and the habits that they built around them help ensure their success in the things they do.
Those who are interested in getting involved and making money off of real estate can be an investor as long as they have enough resources. If you’re one of those people, study your options and be familiar with the market. Remember that you are investing your hard-earned money so you should not take it lightly. However, once you’ve already put your foot in the door, don’t stop there. Grow as an investor and do your best to evolve into an entrepreneur. The risk may be great but the rewards are more fulfilling.