So what is the simple real estate investing business model?

It’s as easy as 1+1=2!!

Are you ready?

Here it is: Your property is used by people or businesses and they pay you rent!!

How simple is that? Probably one of the simplest business models you will ever hear of!

Finding venture capitalist was hard!

I did a research project in college with a friend of mine. It was a pretty neat concept, if you’re nerdy like we are. We thought we could possibly monetize it and become rich!

It had to do with culturing microorganisms using dead microorganisms which we obtained from a sewage treatment plant. Kinda like bacteria cannibalism!!

Then we found out how crazy complex it would be  raising funds, getting sponsors and grants, obtaining manufacturing facilities, etc.

We also had no clue about how to relate our product with the average Joe investor who knew nothing about the science or the processes behind the venture.

Needless to say we both moved onto different things.

I moved on to something much easier! Real Estate investing!

My point here is that we understood what our service was and how to do it, BUT the risk involved for investors who didn’t understand microbiology or chemistry, who would be blindly putting their money into a venture they knew next to nothing about, was too much.

Question.

I like to ask the average American with a 401k, IRA, or any other qualified so-called “retirement plan”: What do you know about the companies that your account manager is putting your hard earned money in?

With stocks, you typically have a “professional” manager or board of directors who you tell to invest where it makes sense based on your risk tolerance and time frame before you retire.

I would also ask: “How much do you know about owning a piece of real estate?” Many of you would know a great deal because you actually own real estate that you live in!

Investing in real estate does not require you to spend tireless hours trying to decipher charts, graphs, and trends plus a million different market indicators just to know when to buy, sell, or hold.

Real Estate is common sense!

You’ve lived in real estate your whole life! For the things you don’t understand or you don’t want to understand, you hire and collaborate with a team of competent professionals that span the market in order to transact real estate.

Doing this greatly improves your understanding of investing while not having to be an expert in everything involved.

Also, once the property is yours, you can hire a competent property manager who takes care of your property rather than you acting as landlord which is usually pretty stressful.

Again by doing it this way you don’t have to be an expert and you can spend your time doing things you enjoy, not unclogging toilets and fixing door knobs.

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Simple Real Estate Investing Business Model By Joe Nielsen