What is your investment profile?

It’s pretty well-known within the real estate community that I have a strong passion for working with residential investment properties.  What many people don’t realize, is that the real estate investment market is far from being a “one size fits all” category.  I love the variety that comes with working with a broad range of investors, and ultimately helping them build their investment portfolios with properties that suit their individual goals and lifestyle.

Here are several real estate investor profiles that I’ve been privy to working with over the years:

  • The Speculator – This investor has a high risk tolerance.  He/She purchases new builds in an early construction phase and aims to sell the property for an anticipated appreciated value on closing.
  • The Analyzer – This investor has strong goals but a very low risk tolerance.  He/She has a tendency to over-analyze, react slowly to great deals, and rarely winds up purchasing anything.
  • The Team Player – This investor prefers to purchase properties with investment partners in an effort to minimize/share the risk, cost, and property management responsibilities.
  • The Handyman – This investor doesn’t shy away from putting in a little “sweat equity”.  He/She hunts for properties that need work in order to fix them up to flip them, or to rent them out to good long-term tenants.
  • The Slumlord – This investor puts the least amount of effort into an already rundown property in an effort to save money, and often attracts less than desirable tenants.
  • The Multiplier – This investor seeks out detached properties with separate entrances with the goal of creating legal accessory apartments, thereby increasing the number of units they can rent out to prospective tenants.
  • The Freeholder – This investor prefers to avoid condo fees by purchasing freehold properties only.  He/She opts for properties that need minimal work in order to rent them out and maximize on the monthly cashflow.
  • The Bunkie – This investor seeks to purchase an owner-occupied multiplex or a property with a legal accessory apartment with the goal of living for free while the rents cover the majority (or all) of their living expenses.
  • The Busy-Body – This busy investor’s properties of choice include condo apartments and condo townhomes due to their limited need for any exterior maintenance, therefore saving a lot of time and energy.
  • The Retirement Planner – This out-of-town investor purchases multiple condo apartments within their retirement city of choice with the goal to rent the properties out until they are ready to relocate there to retire.  Upon retirement, they will either choose to live in their favourite property, or they will sell several properties in order to purchase the property of their dreams.
  • The Luxury Landlord – This investor chooses high-end properties with a tenant target market comprised of executives, professionals who work in the area on contract, or families who lack the downpayment to purchase their own property.

Can you relate to any of these investment profiles?  Ultimately, there is no right or wrong investment profile.  In order to build a solid investment portfolio, I strongly suggest that your investment decisions are void of emotion…make sure the cashflow numbers make sense, and that affordability, your personal risk tolerance, skill set, and time commitment are all taken into consideration.

Have questions?  I’m always here to help…please contact me at: mivy@trilliumwest.com.

Michelle Ivy

About Michelle Ivy

I love to write about my passion - Investment Properties in the city of Guelph. Educating my clients and working with them every step of the way to build their wealth through property investment.

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