Everyone who knows me is aware of the fact that I am a huge Donald Trump fan. I like the Trump University website and find them very interesting because of their think and do approach to investing. Today they have me wondering what type of investor I am...
When you are working with scaled down resources you have to stop what it is you think you are doing long enough to figure this out. It's a huge mistake not to. Seriously. Warren Buffet figured it out. If it's good enough for Warren and Donald then my premise is that one may no longer assume the information isn't useful because he or she is not flinging millions at a project. If an astute Realtor figures it out before you do you may find yourself off on an adventure you did not anticipate. Depending upon the professional you retain, this can be a good or a bad thing, so you may want to get comfy so you can take a moment to figure this out.
Like discovering one is an Alpha Male or Type E Personality, the type of investor you are colors what you decide to do when you finally get around to allocating funds for your project. Will you, as a buyer, be an owner occupant? Do you embrace the cash flow model and seek a continuous streams of income? Are you seeking tax shelters? Do you think your bottom line is capital growth? (Capital Growth is the biggie in residential sales. Did you know that most homeowners seek this sort of return on their investment not realizing they are engaged in this process? 'Tis true - LOL)
Turns out that I am an amenity purchaser, which sort of tweaks the above points a normal investor would be driven to accomplish into a different direction. My motivation for investing in land has to do with the location of my loved ones first, then I overlap into the regular investment considerations of best use, possible subdivision, sustainability, utilities, recreational versus residential rental, flipping the project, etc.
As Realtors we have to keep in mind that investors generally value properties for their rates or return, and amenity investors add that extra quirk of desiring a property to fulfill a specific business need (e.g. like location). There really is a distinction that drives them. They can also overlap, so don't be fooled into thinking you have your buyer and seller pegged. You will have to listen very carefully to what a client is saying to figure out the two. It may require you to actually asked a few astute questions rather than assume (LOL). I'm, just sayin' ;-)
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