Chances are you know someone who talks a lot about becoming a real estate investor, but never actually follows through. Or maybe you’ve had the desire to begin investing, but you’re just not sure you’re cut out for it. You may think you don’t know enough or you may be afraid of failing.
Just what does a real estate investor look like? What kind of characteristics do they have? While there are those that are unique, many real estate investors have common characteristics.
Here’s a snapshot of a picture of the average real estate investor:
- The average age of a real estate investor is 45
- Their average annual income is around $85,000
- About half of investors have two income households
- Almost half of them have more than one investment property
- 58% focus on the single-family properties niche
- Almost 50% purchase their properties through a realtor
In addition, there are some common characteristics and traits of real estate investors that I’ve noticed over the years.
Investing is their passion
Successful real estate investors are passionate about investing. Regardless of the type of investments they’re doing (my Unlimited Funding Program, flipping, BRRR method, wholesaling, etc.,) they have a love for investing! The truth is that to experience a higher level of success, passion is a necessary ingredient. Investing in any niche requires learning, creating a strategy, and executing that strategy. Sometimes, along the way, mistakes may occur. However, if you’re passionate about investing, you’ll learn from those mistakes and you’ll get right back up and get back at it.
Successful real estate investors are disciplined. Most of them create a schedule and stick to it as best as they can. They’re methodical. They plan for their future and do today what needs to be done to secure the kind of future they want. They take action even when they don’t feel like it. They make the calls even if they’re not phone people. They set up the appointments even if they’re not a people person. They understand the power of living a disciplined life.
They’ve taken the time to learn core principles
Successful real estate investors take the time to learn the core principles of real estate and business. They take serious the business of educating themselves and some even hire a mentor to help them learn the ins-and-outs of real estate investing and give guidance as they step out. They understand that firm foundations are necessary to uphold a strong, successful future.
They have a great relationship with money
Successful real estate investors care about their money. They value money. They care about acquiring assets over liabilities. They manage their money well. They budget, forecast, work the numbers, and are continually learning about financial principles. They may not try to do it all, such as be their own accountant or bookkeeper, but they learn enough to be “in the know”.
Investors come in all shapes and sizes
Granted, investors come in all shapes and sizes. I’ve met investors who were barely wet behind the ears who became millionaires in no time. I’ve also met investors who were well into their golden years doing the same. Some were highly organized and knowledgeable and some were not so organized and were just beginning to learn. Some made a significant amount of money with ONE investment!
What does a real estate investor look like? If you’re interested in securing a successful financial future, and you’re willing to step out and begin investing, simply look in the mirror and you’ll see!