What’s the Best Background for a Real Estate Investor?
We love real estate investing. We also think that anyone, from any walk of life, can find financial stability and a sustained income by becoming a real estate investor. Nothing guarantees success, but with the right approach and skills, investing in property can be a fruitful experience for anyone.
But some backgrounds, quite frankly, can better prepare you for the rigors of being a property investor. A variety of different careers provide the basic foundation to help you successfully work as a real estate investor. Anyone can do it (and even people with these backgrounds can fail), but these career are great entry points into the exciting world of real estate investments.
Best Backgrounds for Real Estate Investors
Real Estate Agent
It’s perhaps the most obvious of all backgrounds, and one that can easily transition into a career as a real estate investor. If you work as a real estate agent, you have a lot of skills and knowledge that directly transition into property investments; none more so than the ability to gauge a good real estate purchase.
Real estate agents have seen hundreds, possibly thousands of properties. They are less likely to make an emotional purchase and have the experience to see potential gems, even if the homes don’t “look” great. They’re not impressed by fancy fixtures, but they’re also not scared away by easy-to-fix issues, such as ugly wall paper, dirty carpet, or dated countertops.
Real estate agents understand the purchase process, know where to look for good buys, can negotiate contracts, and have countless other skills that make for a fantastic investor.
Construction and Remodeling Professional
Like real estate agents, construction professionals, especially ones that focus on remodeling, have seen a lot of different properties. Like real estate agents, they are not impressed by gorgeous features, but can see the potential for excellence (or at least livability) in any home.
Most of all, remodeling professionals know how to repair, update, and upgrade a home, and can do so on a tight budget, lowering their overall costs and creating better chances for profit. Remodeling professionals also have lots of contacts, and can likely turn a fixer-upper into a profit-maker, all in less time and with less money.
To purchase an investment property, most people will need a mortgage loan, and the overall cost of the loan can make a big difference to your returns. Anyone who has worked in the mortgage industry should have a basic understanding of these loans, allowing them to find quality financing for their purchase.
Mortgage professionals know which loans are available for borrowers, and can decide, on their own, which loan will create a profit for their investments.
Investment professionals may not be housing experts. In many cases, the only property purchase they have ever been a part of was their own, and they likely don’t have the repair skills that construction professionals hold.
But they understand the crucial factors that create financial success. Return-on-investment, financing, percentages, performance, market volatility, risk, and many other concepts need to be internalized by real estate investors. Fortunately, people who have worked with the stock market, bonds, and other investments already have a grip on these concepts.
Successful business managers, in all sorts of industries, need a variety of skills to create a quality working environment. They need to juggle dozens, even hundreds of moving parts, including employees, customers, clients, bosses, new products, inventory, scheduling, and more. The ability to make all these moving parts work in unison is essential, and this can easily translate into a real estate investment career.
Firm decision making is also important. The ability to look at a group of options and make a firm, direct decision, then execute on this decision, can help you find properties, select the right one, and choose whether or not to update the home. Communication skills can also be useful for both profession.
Accountant (Including Tax Professionals)
There are a lot of numbers involved in real estate investing, and there can also be a lot of tax implications, including write-offs, capital gains taxes, and more. Having a good understanding of taxes, and how to reduce your tax burden, can be the difference in thousands of dollars of profit. Understanding how the tax code plays out can help you decide on repairs. For example, there are different tax laws for repairs vs routine maintenance, and knowing how they shake out can impact your choices.
Accountants can also assess the profitability (or lack thereof) for certain homes, and can make a numbers-backed decision on whether or not to keep a property.
Customer Service of Any Kind
As a landlord and property owner, you need to have contact with many different people, including tenants, contractors, mortgage agents, and real estate professionals. Learning to work with people through a customer-service-based career can help you reach the best possible outcomes.
While people who have never owned their own home could be successful, to really understand the costs and energy of ownership, it helps to have owned your own home in the future. It’s not a requirement, but previous ownership will help with the mortgage application, purchase process, and long-term maintenance of the home.
Proud to Be a Part of Your Success!
Have you noticed a trend? The best backgrounds for real estate investors can come in all varieties. Blue collar work like remodeling houses is certainly a great background for future property owners, but office professionals who organize mortgage lending also have a strong background.
So while some jobs prepare you for investing, the truth is that no matter what you’ve done in he past, you can become a successful investor. Let use help on your journey by providing affordable, high-quality investment loans. From large multi-unit properties to small starter rentals, we’ll make sure you get the right loan to build a successful property portfolio!