Two Types of Property Investors
If you want to make more money with your property, you need to know what kind of property investor you want to be. In today’s article, we talk about the two types of property investors so you can earn and save more money, buy more profitable properties, and attain financial freedom. Types of…
If you want to make more money with your property, you need to know what kind of property investor you want to be. In today’s article, we talk about the two types of property investors so you can earn and save more money, buy more profitable properties, and attain financial freedom.
Types of Property Investors
An investor, who is anybody that turns a property into something in which they collect rent, needs a different level of skill and ability.
As an investor, you have your reasons why you are investing in a property. Whatever that may be, you should make sure that you make and save more money efficiently.
Here are the two types of property investors, so you know which type works best for you.
The accidental investor perhaps lives in a single-family house or a condo.
They are also either moving up with their family and getting something a little bit larger. Perhaps they are moving to a different location but want to keep the property because of how great renting property is.
With an accidental investor, as long as you get rents that will cover or make a little bit more money for them, most of the time, you’re pretty happy.
You get good tenants to take care of your beautiful home that you’ve lived in and care about. We always want to make sure we put good tenants in.
These are the type of investors that buy a property intending to make income on it.
With an intentional investor, you care about the numbers. You care about the returns, and you care about so many intricate things that most property managers won’t get involved in.
When I say that, I’m talking about things such as curb appeal, which affects the actual value of the property. The property’s value can then mean the amount of money later on that you can take out of the home as equity to purchase your next home.
The goal of an intentional investor is to buy multiple properties. Those multiple properties can then offset them to help them get income.
But there are other sides to it, such as the expense side or the tax deduction size.
So why are there so many real estate investors out there that are millionaires? Because they take advantage of the tax codes that are out there for investment property owners, such as depreciation.
What is Depreciation?
Let us quickly talk about depreciation. It is a huge tax break that the city or the government will give you to depreciate your home. Usually, it’s over 27 ½ years, and lots of numbers are coming your way.
What it means is that you can lower your income based on the amount that you get deducted. There are even trickier, more intricate ways that you, as an investor, can save money when you own a property.
I have guys that, on paper, lose money which means that they lower their income. But their property and their values are actually still making more money for them, and that’s the real key to real estate investing.
Type of Investor We Prefer
At Green Ocean Property Management, we have both types of property investors. However, we specialize in helping intentional investors.
Why? Because there’s a whole different ball game and set of skills that go into this. I myself own 70+ units, and I take the time to educate, teach, and help implement for all my investors how to take advantage of the real estate market.
There are so many things above that, not just buying a property that has decent tenants and good rent.
If you or anyone else you know is looking for a property manager that goes above and beyond, that can help you as an intentional investor make more money, save more money, buy more properties, and have financial freedom, please think of Green Ocean Property Management: where you get more than a property manager, you get peace of mind.
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