Types of Investors
Nteg Realty specializes in residential and commercial real estate investments. Over the years we have gained valuable experience in a variety of investment opportunities including short sales foreclosures rent to own programs installment contracts rentals new construction and seller financed programs. The first step is to identify what type of investor you are. We have classified real estate investors into a few different categories.
Rehabbers- Rehabbers are investors looking to purchase distressed assets with the intention of renovating the property. The actual properties can range from condos to single family homes to multi unit buildings in a variety of conditions ranging from complete gut rehabs to mid level rehabs. Rehabbers tend to operate on the largest margins due to the added expenses of larger rehabs and the inherit risks that go with them.
Handymen- Handymen are very similar to rehabbers however they are looking for properties in need of less work than the rehabber. They seek the same properties types as a rehabber however handymen look for properties that do not need a lot of work. The profit margins are usually lower due to the reduced risk as well as lower capital amounts for repairs.
Landlords- Landlords are investors looking for move-in ready or already rented properties. They will purchase properties with existing tenants or soon to be rented units as long term investments (2+ years).
Owner Occupants- Owner occupants is a mortgage industry term that describes a typical homeowner who is purchasing a property as their primary residences. All real estate is an investment and buyers need to aware of what their goals are prior to purchasing.
These are general categories that will assist in identifying investment opportunties to best meet your goals. Many investors will fit into one or more categories. Diversification is key in any financial investment plan.
Investment Goals
The second step is to determine your investment goals. Each investors will have specific individual goals to meet to execute their investment plan. While different investors will have different goals they must all have specific acheivalbe goals that must be outlined. The goals can be broken down by time frame and investment objectives.
Short Term Goals- Goals with a time frame of less than 2 years. Examples of a short term goal is to purchase a distressed asset with the intentions of renovating and then selling the property at a retail level.
Long Term Goals- Goals with a time frame of 2 or more years. Examples of a long term goal is to purchase a property for rental purposes.
Cash Flow Goals- Cash flow is the monthly income generated by a rental property after paying all property related expenses.
Appreciation Goals- Appreciation goals are recognized as a property value increases over the time of ownership. This can be the main investment objective of an investor or it can be combined with a cash flow goal.
No two investors are the same. Each investor should have a comprehensive financial plan to accomplish their real estate goals including a variety of exit strategies and contingency plans for varying market conditions. Our agents have years of experience to guide each investor along the way. Click here to contact one of our agents via email or you can call 708-428-5778 to speak with an agent directly.
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