What Type of Real Estate Investor are You

In my new book, Bubble Proof, I share with readers all of the tools needed to launch a successful career in real estate investing. Over the course of my career, I have found that there are four basic types of real estate investors. The key to unlocking your success in the field is understanding what type of investor you are so that you can act accordingly.

It is important to note that you are not stuck as one of these four types just because of your personality. Instead of four different types, you can view these as four levels of real estate investment through which people can pass, from one to four, as they develop as real estate investors. Not everyone passes through these four levels, but if you develop as a real estate investor, these are the levels through which you are likely to pass.

The four types are as follows:

• Type 1: Safe/secure investors own their homes. They are willing to invest in other properties, but want to carefully review all the benefits and risks or they won't get into the game.
• Type 2: Moderate investors often own one or two additional properties as well as their homes. They like to take small, educated steps. For them, the grass is always greener in other people's deals.
• Type 3: Risk-takers thrive on possibilities and are quick to discern good deals. For them, money is the means to something rather than the goal itself.
• Type 4: Full-time real estate investment freaks eat, sleep, and drink real estate. When they are not structuring deals for themselves, they are doing so for friends. Some people never see opportunities even if they see so many that they have to avoid tripping over them. Investment freaks tend to have a good solid foundation in real estate and are successful people who take action quickly. Their outlook is that they have nothing to lose and everything to gain.

Which of these four levels represents you as an investor? The answer to that may depend on your risk tolerance. If you are risk averse, the first or second levels are most likely. If you have a more devil-may-care personality, you may start out on the third level. As with any kind of investing, however, caution pays off in real estate, especially for beginners who have yet to learn the rules of the game. However, some experienced investors are held back by their extreme caution, and always will be. These are the real type-one investors. Lifelong type-two investors often lack the drive that motivates others to become type-three risk-takers as they gain confidence.

How do you end up as a type-four, full-time investor? Well, one success leads to another. You learn to make quick decisions. You know that you must change your life to change your income. Over time, you see the things you need to do to change your life, and you do them. You control your fears. With experience, you become educated in real estate. You begin to trust yourself.

Achieving financial freedom through real estate is all a matter of changing your mindset. Type 4 investors have all gained the experience to not only recognize an opportunity, but to act on it quickly and effectively. That is the "Millionaire Mindset," and it is the key to achieving your financial freedom.