Are you an Are you an investor or a wannabe?

[Toyin Dawodu]

I ask this question because some would be investors have it completely twisted. Based on my observations, there are two kinds of investors.

Those who buy for profit and those who buy for ???

The people who buy for profit know why they are buying. There's no emotion involved.

It's similar to Walmart sourcing for inventory. They don't go to Kmart to stock their shelves. They go direct to manufactures in China or wherever they can find the cheapest.

As an investor, where or who you buy your inventory from determines your profit.

I once hired an Assitant, and she told me she was an investor. I asked her how many properties she owned and she said, "I own three properties, the house I lived in, one rental, and a vacant house in the boonies somewhere in Ohio.

How long have you owned the rental? I asked, She said, "fifteen years" how much money have you made so far? She explained that she had not made any money and the property costs her money monthly. She bought in the wrong are, and for too much money. 

Then I asked, how much are you putting out extra per month? $200 extra she said. So I said to her, you have an an alligator in your hands. First she was puzzled, until I explained to her what an alligator of a property is. When you have to come out of pocket to support a property monthly, then you have an alligator.

NO EQUITY NO PROFIT.

On top of feeding her alligator, she has very little equity in the property.

Then I asked, why don't you sell it. She stated that the renter makes it difficult to show the house, and she may have to come up with money to sell it because of sales costs and comission.

Her other property is in Ohio, she had purchased it in a tax auction, but never had enough money to fix it, so she has been accumulating property taxes on an empty property for six years.

So I gave her a plan to sell both properties immediately and she was able to even make some money within sixty days of putting the plan in effect.

KNOWING WHAT TO DO MATTERS

When you are upside down on a property or close to break even, it is sometimes costs more money from your pocket to sell through an agent. The quickest way to sell is direct to another end user of the property or owner occupant, with some money down and carrying the paper for as much equity as you can get in the back end.

This leads me to my original question. What kind of

Investor are you? Are you in it because your neighbor is an investor, or are you in it because you really want to make some money?

Is real estate a career for you, a business, a passtime, or a hobby?

Your answer to these questions will determine your success in this industry. Secondly, the amount of paid training and or coaching is what really separates you from the wannabes.

Some would be investors refused to take the necessary training, thinking that absorbing all the free information from other investors and the Internet is enough to make them a successful investor.  So the question is, does anyone really need a paid training or a coach to succeed in this business? If so, what kind of training is really necessary and for how long. Let's hear your views.