I’m sure you are most likely to be familiar with real estate. Even it you are not in real estate business, you might in on one way or customers have a friend or you know someone who is a real estate investor. What about those many classified adverts we see everyday in our newspapers or bandit signs showing us that there is a property being sold.

To bring you closer to the topic; real estate business involves buying and selling of property. The market is growing so as the property value. There is never ending demand for housing across the world-whether it is residential or commercial.

In the virtual world there exists also virtual real estate and as the name suggest the business is virtual in nature, no physical property as in real estate. While the two nearly have the same concept and leverage, virtual real estate involves creation of and building of online businesses-it involves product creation and selling. Your website is your virtual office or store. To clearly understand, compare, differentiate or make choices between the two, let us look at the following factors.

Financing and capital

Both real estate and virtual real estate you have nearly equal leverage on finances but real estate has a slight lead. Although real estate requires huge capital to start and operate, you can readily access the funding. Thanks to financial lending institutions and other private lenders. It is possible to start your real estate business with nothing down. This however comes with high interest rates. For instance, you can purchase a property worth $100,000.00, with only $10,000.00 as your down payment with&$ 90,000.00 is financed through a mortgage. Start-up capital for a virtual real estate is negligible if you can compare with real estate. It is not uncommon to find someone who which to start up his/her virtual real estate business with $500.00.

Income and value

Given the fact that, real estate business requires large sum of money to operate, so does the profit. It is only that sometimes it hardly comes. It is possible to make few deals per month and end up profiting heavily. In addition to that you can rent you property to tenants who will generate your monthly cash flow. The downside of it is that you will have to pay interest on loans, insurance and of course tax which will decimate your balance.

Virtual real estate operate on a different platform, most of the income is generated through selling of products. You can generate few dollars from each sale but if you consider those huge sales volume and lower operational cost it is possible to outdo real estate business in terms of cashflow. Moreover you can even sell your website at exorbitantly high price generating huge profits.

The value of a real estate property appreciates in a more sure and slow rate compare to virtual real estate. Virtual real estate can go either way but when it appreciates you can reap a lot. Imagine developing a web business which you cash in $ 500,000.00 from sale in just one year.

Though any person can easily get involved in the real estate industry, it takes a very special kind of person to be successful. While you do not have to have any special skills you will need certain personal traits or attributes if you are to have a successful real estate investing business. This article helps you answer the question, “Do I have what it takes?”

Do You Have What It Takes?

1. Are you a self-starter? Can you motivate yourself to do the job on your own without having a boss or supervisor standing over your shoulder? You must be able to take the initiative in establishing relationships with the many people involved in the this business such as real estate agents, buyers and sellers of property, potential partners, and others. I have met many people who initially started on this path to investing, but found that they were not self-starters. I started out that way myself. So I can identify with this you. When I was new to the business, I too found it difficult to take the initiative. But as I met more people, made more deals, and developed my self-confidence it became easier.

2. Are you disciplined? How good are you at keeping yourself on track and promptly getting things done? Are you willing to take massive action to achieve success? You may need to talk to 30 sellers before you find one good deal.

3. Are you organized? Can you handle paper work and keep track of all the business transactions in order to make sure that things run smoothly?One missed deadline could be hazardous to your reputation.

4. Do you have a strong desire to succeed? Would you consider yourself to be a stick-to-it kind of person? Real estate investing can be tough work and slow at first. You must have a strong desire to succeed at what you are doing in order to get yourself through the tough spots.

Conclusion

If these attributes sound like you, congratulations. With these traits on your side: 1) Being a self-starter; 2) Being disciplined; 3) Being organized; and 4) Having a strong desire to succeed, you are on the right path to success in real estate. It looks like you have what it takes.

If you are interested in reading more about developing the proper mindset for success as a real estate investor, I recommend The Inner Game of Internet Marketing by Connie Ragen Green and Geoff Hoff. It is a must read for all aspiring entrepreneurs.