No, no quiz is necessary for this but do you ever wonder if you have what it takes to be more big time?
Personally, I’ve always been a smaller investor. Big names like Trump or Buffet are from another planet (though I always want to know what they think).
But if you want to go big time, I recently came across a Bigger Pockets blog that has some advice you can consider.
First of all, I am almost certainly small time because I am very conservative about where my money goes. And I generally think of local investments I can see and keep track of.
That is wrong thinking if you want to fry bigger fish, says the blog.
According to the blog, the big boys all look beyond local offerings. They recognize the changing markets and take advantage of the best deals (which are always changing) wherever they may be.
What else do the big boys do? They don’t get their hands dirty.
They outsource all their work. They oversee teams who actually do the sweat work. They are often passive investors. They like to say things like they “don’t work for their money.” That means they have a horror at being hands-on.
A third element is that they leverage as much as possible. And they never pay cash for anything. They make it a point to use other people’s money. If they invested cash, they would risk the horrible fate of losing their own money.
Finally, the big-time investors know their full-time job is not what you might think: Finding deals. No, it’s finding money to make those deals.
Each and every deal makes the demand to find more investment money.
So the rule here is simple: use other people’s money. Find them and get it.
“If you can’t master finding other people’s money, or you insist on not leveraging for fear…you will never become a big-time investor,” says Ali Boone at the site.
He asks what kind of investor you are? Are you the type who insists on only buying locally and doing all the work yourself (managing all the headaches and risking your own money) or are you the type of who knows the “real definition of passive income?”
This is really a good question, and one you should be able to answer.
The only excuse I can muster up for not being a big time investor is that I am not comfortable with involving others. I would prefer taking my own risks and having my own control of any real estate projects I take on.
I don’t know about you but I remain comfortable in my own cocoon.