Property Collector or Real Estate Investor

Yesterday I was having a conversation with a younger person who considers herself to be a real estate investor. During the conversation I was bringing up “old-fashioned” notions (I’m 42, I’ve been called a lot of things…just not old-fashioned.) like a cash reserve, putting some money into the deal and making sure the math works within your criteria before purchasing a home.

This younger person is extended beyond belief, has a portfolio of houses that don’t fit together and are strung out all over the city and seem to be in no relationship to one another in any category including;
  • price range.
  • condition.
  • quality of tenant.
  • location.
  • style of house.

Now, don’t jump all over me. I realize there is a word out there called diversification. But there is also an “old-fashioned” theory out there called having a plan. Purposeful Planning is what my friend Jeff Brown calls it.

I’m not going to dive into this too deeply. I could make this a four part post. But I am going to say, that in my mind at least, there is a huge difference between being a real estate investor or being a property collector. Real estate investing takes planning, purpose, education, guidance and hard work. All of those combinations put together create all those conversations that start with “Boy, you sure were smart all those years ago to buy those properties. I wasn’t that lucky…”

With property collecting, you will need some luck involved. Some people make it through with this philosophy. Some “investors” don’t even realize they are property collectors.

Stop right now,review your portfolio of income property. Does it look like it happened on purpose? Then keep it up. Is it a mish-mash? Then let’s talk.


Filed under Real Estate Investing

2 responses to “Property Collector or Real Estate Investor

  1. Athol Kay

    I believe that the housing splatter you describe is the Casey Serin approach…

  2. Chris Lengquist

    Athol, I had to google Casey Serin. Apparently I’ve been living under a rock. This guy cracks me up. He wants people to donate to his legal defense fund. The guy lies, creates foreclosures that have an effect on not only him….

    I need to quit. I might libel (sp?) myself if I go any further. Or I might just post on it tomorrow!

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