What Is A Real Estate Investor?
Hey guys Cameron Stewart with Fast Cash Home Buyers here and I’m sure a lot of you are wondering what is a real estate investor what’s the difference between selling my house to a real estate investor. Just who are these guys, right? who are these guys that say they’re going to buy your house so we’re going to go over what a real estate investor is today.
All right folks so let’s talk about what investing is in general get a clarification there and then we’ll figure out what a real estate investor is. An investor is someone who puts up money as a risk with the intention to receive that money back plus more money okay. real estate investors the same person they’re going to buy a house with the intention to make more money off the house by selling it renting it out doing whatever they do with it i will tell you that there are way more real estate investors out there in your community that you know personally than you may realize.
For example you know the the local woman who owns a business that she runs and has an apartment on the top and collects rent? She’s a real estate investor. A builder who purchases a plot of land for twenty thousand dollars builds a house on that land and sells it for a profit, they’re a real estate investor. There’s a lot more in your community than than you realize. Anyone who makes money off of real estate is a real estate investor, unless they’re an agent. If you’re an agent then you’re brokering deals and you’re not necessarily investing, you’re investing your time, but you’re not necessarily a real estate investor.
So simply put, someone who buys real estate with the intention to make money is a real estate investor. Normal people are just like you and I. I’ll tell you a lot of contractors are real estate investors you don’t realize you may not realize this but a lot of contractors have to know how on how to fix these houses and they have a team of people and in our market they like to keep their team employed through the winter. So a lot of times they’ll take some cash at the end of the year they’ll buy a house or two. They’ll pay their their team to rehab the house through the winter and then sell in the spring. It keeps their guys busy, puts some money in their pocket.
So there’s a couple different types of investments of course. The common ones are flips, that’s kind of where I come in and play. You know someone who buys a house fixes it up sells it for a profit and they’re done with it they have no other ties to that property that’s a flipper that’s a main source of an investment strategy for a lot of people. The other one is buy and hold rentals. okay someone who buys a house all right they might still need to fix it up of course there’s generally a multi-family unit a multi-family home if if you know they’re looking for that sometimes people do this with single-family homes of course and rent them out but they’re going to to have a long-term goal they’re putting tenants in there and making money over time so still an investor different strategy.
Then of course there’s financial investors in real estate who’ll never do anything with the home themselves. They have other people do it and they’re just lending money and collecting interest on that money and other investors are going in and and purchasing homes with them. so there’s different types of of investors now for me what my wife and i do is we’re looking for homes that for one reason or another there’s not a lot of interest to rehab it so we work a lot with people that have inherited homes.
So for example, imagine you have a home in in one town okay you have a mortgage on it, mortgages are expensive, most of the time we pay a lot of money for our homes you have a loved one pass away unfortunately and you inherit their home. Maybe they have some back payments on taxes or something like that and at the end of the day it’s just hard for you to to balance the budget of both homes. Well that’s where an investor like myself can come in. Maybe that house in these repairs because maybe an elderly person lived there of course and their house wasn’t as updated as possible. You’re trying to figure out how the heck can I do this. I’ve got a full-time job, I’ve got kids. How am i going to repair this house i don’t know anything about it. I can’t list it on the market for a retail price. Well an investor like myself, I can come and purchase the home for cash okay fix it up and give you a fair price of course fix the fix a property up and sell it and make a profit everyone is happy so that’s the kind of investor i am i’m looking to buy homes and that need a little bit of work repair them to their to their to their glory and sell them for profit and hopefully um make everyone happy in between
so i hope that gives you a little bit more information as to what a real estate investor is at the end of the day normal people like you and i who make their money by buying and selling real estate if you guys have any other questions please feel free to call me directly three one five three five one two seven seven two log on to www.fastcashhomesny.com i hope to speak to you guys soon!