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The phrases “landlord” and “real estate investor” are frequently interchanged. These two titles represent two very distinct asset management techniques. You don’t become one or the other just because you own property; it’s how you handle it that determines whether you acquire one or both titles.
However, before we dive in, if you want to learn how you can approach financing your properties as an investor instead of a landlord, click the link below for a free strategy call today.
They are two sides to the same coin
Landlords are in charge of overseeing a property’s management, leasing, and basic maintenance, as well as maintaining tenant relationships. Being a landlord isn’t easy, and ‘being a landlord’ is sometimes a full-time job. From fixing toilets to depositing rent checks at the bank, landlords handle it all.
Investors in real estate are mostly concerned with the numbers. Real estate investors systematically increase their investment portfolios rather than spreading themselves thin by doing the day-to-day activities connected with property management. They emphasize the financial advantages of owning a home.
Which of the following titles do you hold?
Real estate investing is never simple. When compared to persons who try to run their properties as landlords, real estate investors are more likely to enjoy the process of making money through real estate.
It’s easy to get caught up in the mindset of being a landlord. After all, thinking about the assets you own and the value of your property gives you a sense of success and ownership, which is part of the appeal of real estate investing.
Learning to step back from your specific properties allows you to look more broadly about your investing career, giving you the time, resources, and freedom that real estate investing provides. As an investor, your priority should always be expanding your portfolio and achieving your financial goals, rather than tending to individual tenant demands and dealing with the day-to-day issues that arise at your investment property.
The advantages of having an investor mindset
There are numerous advantages to redefining your role as a real estate investor rather than a landlord. Here are some strategies to boost your investment prospects by thinking of yourself as an investor rather than a property manager:
Time is saved by investors
Many people get into real estate investing for one simple reason: to make money while they sleep. This is what enables them to enjoy a life free of work commitments. However, as a landlord, you are practically always available. • Investors may focus on growth: If you’re rushing from building to building or unit to unit trying to collect a late rent payment or letting a handyman into the basement, you won’t be thinking about where you should buy your next investment. You’re undoubtedly already overworked, so the prospect of more property to handle sends shivers down your spine. Real estate investors are growth-oriented because they have the freedom to concentrate on the business’s favourable financial features.
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Assets appreciate more quickly
Professional property managers are able to improve the way they manage real estate assets year after year, resulting in higher profits. This makes the asset far more appealing to prospective investors interested in buying it. They’re considerably more willing to pay a higher price if you can show that the house generates significant income. Allowing professionals to look after your property while you focus on expanding your business can help you boost your current capital.
Changing From a Landlord to An Investor
You might be asking how to get away from the landlord mentality while still investing in real estate. After all, real estate investments are huge and significant, and you won’t want to give over management of your asset to someone else.
Finding the appropriate spouse is crucial, and someone you can put your trust in to manage your money. Rather than attempting to manage a real estate asset on your own, look for a reputable business to assist you with property management. This allows you to concentrate on what’s important while taking care of your assets’ day-to-day administration.
Property managers, for example, use their knowledge of the sector to maximise the value of your asset. Property managers frequently have existing relationships with maintenance specialists and handymen, allowing them to offer you substantial discounts.
Property managers are also better at screening renters, which means you’re less likely to find up with a tenant who is behind on their rent payments. You’ll have more time to start brainstorming your next investment if you’re not arguing with renters over late rental payments.
Intangible Investments Can Help You Change Your Landlord Perspective
It’s also worth thinking about various ways to invest in real estate without purchasing a house. Buying shares in a real estate investment trust (REIT), for example, allows you to reap many of the benefits of real estate investing without the hassles of direct ownership and management.
Investing in a REIT or other non-ownership opportunities might not be as thrilling as owning your investment property… However, it can be a lot easier. This is especially true if you’re still working full-time and don’t have the funds to purchase a multi-family building and hire a management company.
Recognize the Advantages of a Hands-Off Strategy
Smart investors are adaptable and inventive. While owning and managing your property is appealing, it’s far better to seek out investment opportunities that match your lifestyle and help you achieve your investing objectives.
It’s crucial to keep in mind that investment is designed to give you independence, not bind you to another job. While real estate investing will always take time and work, it should give you a more peaceful lifestyle in the end.
As a real estate investor rather than a landlord, you will have more time and mental energy to pursue your financial goals to their maximum potential. You’ll be able to fully realize the benefits of building a comprehensive and extensive real estate portfolio once you adjust your perspective to that of an investor rather than a landlord.
Once again, if you want to learn how to approach your investment financing as an investor instead of a landlord, click the link below for a free strategy call today.