Unlike real estate agents, real estate investors are accredited investors.
An accredited investor is someone who has figured out a way to earn a lot of money or build a high net worth. Not only that, but these people also invest in private offerings that carry a lot more risk than open market stocks or securities.
These professionals can invest in deals that non-accredited investors cannot. For example, real estate funds specialized in developing Kona estates at Opihihale like Invest In Kona. (Invest In Kona also accepts active real estate investors, but most real estate funds do not.)
The question is: can you become a millionaire without relying on such a professional investor? The answer is yes, you might. But why would you go through the pain and the hassle when they could build your wealth faster and without any worry?
Why Get An Accredited Investor To Build Your Wealth
The big thing with real estate is most people out there have money but do not have the time or the means to put the effort necessary to build wealth. In fact, most people choose to work at a regular job, making good money. But they do not spend or have time to learn how to invest their savings.
Real estate investors spend their time networking with people who buy, build, and/or sell properties. So, they do partnerships all the time for almost every deal. They may decide to flip a unit or rent it out when it is most convenient.
Owning property means you need to:
- finance it properly
- make sure you have positive cash flow as you own it
- manage a portfolio to make you wealthy over time
- renovate some buildings to make them sustainable for the long term
- start somewhere, flipping some properties so you can get chunks of cash
While working a nine-to-five job, it could be hard to do all that and still have a good life. This is when the accredited investor jumps in.
How A Real Estate Investor Works
Let’s say the accredited investors decide to partner up with Invest In Kona. The real estate investor may go for a simple ohana. But because another partner is involved, they might plan how to collect or make new buildings that generate a profit.
All the work they do help other citizens find a home or the perfect site for their office. All the while, you get a share of their profits, which increase as the deals become more profitable over time.
It is simple math, and each accredited investor may offer you deals with several ROI from which you only need to pick your favorite option.