The Difference between a Real Estate Realtor and Investor

real-estate-investor

Here at BlocVila Realtors we hear this asked all the time.

“What is the difference between a Real Estate Realtor and Investor?”

Very valid and good questions indeed. Let’s take a look further what Wikipedia about it.
An estate agent is a person or business that arranges the selling, renting or management of properties, and other buildings, in the United Kingdom and Ireland. An agent that specialises in renting is often called a letting or management agent. Estate agents are mainly engaged in the marketing of property available for sale and a solicitor or licensed conveyancer is used to prepare the legal documents. In Scotland, however, many solicitors also act as estate agents, a practice that is rare in England and Wales.

Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent. If these factors are not well understood and managed by the investor, real estate becomes a risky investment. The primary cause of investment failure for real estate is that the investor goes into negative cash flow for a period of time that is not sustainable, often forcing them to resell the property at a loss or go into insolvency. A similar practice known as flipping is another reason for failure as the nature of the investment is often associated with short term profit with less effort. But still the demand and rates of real estate in increasing rapidly, hence this becomes the future of investment[1] and the best long term investment.

As you can see there are very distinct difference between the two of them. Also know that Investors do not have to have their Real Estate License. All they need is the capital to buy all the little details are usually left up to the their Real Estate Agents. But know that Realtor’s and Investors go hand and hand. You will often time meet investors that are well connected with their markets Realtor’s. Networking is a powerful thing. Hopefully by this article you will start to begin to understand the difference and where you fit in the mix.

John