Everyone knows landlords buy a property with one goal: to make big profits. They invest in property, renovate it, and rent it out. So, the debate between landlord vs. real estate investor is still common. But is it still possible to profit from real estate if you're not a landlord?
The short answer is: yes! Buying a home is a big deal. Building wealth through real estate is fantastic, but it can be more challenging if you're the one who has to manage the property.
Fortunately, real estate investing provides incredibly lucrative ways to earn passive income. With the appropriate tools and knowledge, anyone can make a passive income and avoid the hassle of being a landlord.
Are you still battling with the "landlord vs investor" question? How to be a real estate investor without being a landlord? Read on to find out.
Landlord vs. Real Estate Investor: What Is The Difference?
A landlord is a person who owns real estate and rents it out rather than residing there. As a result, they have more leverage over their assets, and additional responsibilities such as property management and evicting renters if things go south with the home or an item.
Additionally, many savvy landlords ensure that their homes are rented as often as possible because they can gain tax benefits.
On the contrary, a real estate investor invests money to increase its value. They make investments in assets that have a high potential to increase their cash flow, generate passive income, and produce a good return on their investment.
A Closer Examination Of Landlord vs. Investor
Unlike an investor, a landlord doesn't have a team of financial experts to rely on. A landlord can always hire a property manager to save time, but being a landlord is a full-time job.
You may know some things about the landlord vs. real estate investor question. But there is more to it than their duties and responsibilities.
Being a landlord presents a challenge because you must be involved in every aspect of your business and must perform to the best of your ability.
Meanwhile, real estate investors have access to a team of professionals, including individuals who work as general partners or syndicators, inspectors, contractors, and real estate agents, among many other experts.
Additionally, an investor has a wider variety of investment options than a landlord. A landlord's typical investment is traditional rental properties. But investors can invest in a real estate investment trust, short-term and long-term properties, vacation rentals, and a multifamily syndication deal.
Real Estate Investing Can Be Expensive
Usually, you must put down 20% or more of the property's purchase price to invest in a rental property. Therefore, even if you discover an investment property for $100K, you still need $20K up front in addition to the closing charges and lawyer fees.
Furthermore, you must obtain an $80K mortgage and make regular repayments. It’s good if you also have money set aside for expenses such as:
- Routine upkeep and damage repairs
- Property taxes
- Working with property management companies (if you need one)
- Nonpayment of rent from properties rented
- Vacancy period until a new tenant moves in
However, real estate investing options allow investors to own or invest with relatively little cash. A perfect example is real estate multifamily syndication/crowdfunding deals that allow accredited and sophisticated investors to invest in properties. They don't own the properties outright, but instead own equity in the asset.
At QC Capital, we use our proficiency in risk/return calculations to narrow down the top multifamily assets on the market. We partner with accredited investors to acquire institutional-grade properties with stability, versatility, and low risk. These properties allow investors to carve a smooth, passive course to reach their financial goals without the hefty upfront capital investment of a rental property, and without the hassles of managing the investment alone. Give us a call to learn how we can help you!
Becoming A Real Estate Investor
Being a landlord doesn't automatically make you a real estate investor. Except for "owning a real property", there are many differences in more ways than one.
Unlike landlords who may have to stretch themselves thin by handling the day-to-day tasks associated with property management, real estate investors consistently grow their investment portfolios. They highlight the advantages of home ownership in terms of money.
An investor is more likely to appreciate the real estate investing process than a landlord, simply because there are more tools available to help them on their investment journey.
Millions of people hear about all the rewards of real estate investing and want to jump into the game. Whether you're a landlord or want to start your real estate investing journey, there are some things you need to know.
Take Advantage of Real Estate Investment Tools
Real estate investing demands understanding the technologies available to help investors organize their work, ease transactions, and generally make their lives easier. Having instructional real estate investment materials, such as manuals and publications, is crucial because information and education are the cornerstones of everything.
Fortunately, you can learn everything there is to know about real estate investing in the twenty-first century from your couch. Many real estate investment sites on the web provide resources and information to both new and experienced investors.
Shift Your Focus — Work Smarter
A real estate investor, unlike a landlord, focuses on the long-term objective of expanding the real estate business and learning how to make wealth over time with consistent, positive cash flow. Landlords are more concerned with rental agreements and paperwork, real estate sales, rent payments, insurance coordination, and maintenance, among other things.
Suppose you wish to make real estate investments. In that case, you must focus on establishing a real estate empire rather than focusing on specifics linked to the procedure for renting out your property. You should emphasize education, investigation, and wise decision-making since these things enable you to work more efficiently.
Read Up On Comparative Market Analysis
A real estate investor needs to be knowledgeable about the market to succeed. By thoroughly understanding the property market and its swings, you can choose the ideal locations to buy homes and create a positive cash flow while also better understanding how to acquire an investment property.
Knowing everything there is to know about comparative market analysis (CMA) commonly referred to as housing market analysis, is essential if you're an investor in real estate. The procedure involves comparing a specific rental property to other previously sold properties in the same neighborhood or location.
This procedure aids in identifying or determining the valuation of the comparative rental property, allowing you to set the price and sell the property as quickly or slowly as you choose. You can also learn more about how buyers and sellers behave in the property marketplace and how their actions influence and modify the pricing of properties.
If you want to learn more about strong multifamily markets, get in touch with the experts at QC Capital to help you find a market that can carry you to your financial goals.
Look Beyond Your Local Market
It's the 21st century. And just like in any other industry, there are several remote opportunities for real estate investors. Remote investing tends to be significantly more simple than becoming c a remote landlord, due to the hands-off nature of passive investing.
Feel free to make investments in far-flung assets. Some remote opportunities have incredible potential for growth and provide an opportunity for you to increase your investments and expand your empire.
The common misconception is that you will lose control of your assets by investing in remote areas. But with the right team of investment experts at your flanks, you can trust that your remote investments are being treated with care and diligence.
Partner With Expert Real Estate Investors
Landlords are at the mercy of their tenants. A landlord can't take their house with them when they move, but a real estate investor can! The asset remains even if you move. And you have no vacancy periods to deal with either.
Real estate is a wise investment, so long as you approach it intelligently. Of course, as with any business, a certain amount of risk is involved. However, with careful research, solid follow-through, good planning, and the right professionals at your side, you can make raking in gains off of real estate your everyday business.
Moreover, QC Capital makes finding institutional-grade properties more accessible than ever before. Our network of real estate professionals has successfully acquired, repositioned, and managed sophisticated real estate properties across the US. We keep strategic value generation at its optimum level while mitigating risk.
So if you're an accredited investor ready to start making serious real estate investments to build your wealth—don't hesitate. Contact us today!