Real estate investors come in two varieties: the professional who does it for a living, and the investor who is looking to increase his or her net worth over a lifetime. Given a reasonable rate of success, the investor soon starts thinking seriously about turning professional.
As an example, seldom does the grocery chain own the grocery store. If it started out that way, it was most likely purchased at a later date by an investor group formed for the express purpose of owning quality, investment-grade real estate. Most companies in the grocery business need all of their money to improve and enhance the business of putting groceries in the hands of the buying public. Their emphasis must be on the volume of sales and the profitability of those sales. The buildings become leased investments whose desirability as investments depends directly on the creditworthiness
and diversity of the tenants in residence on the real estate.
This process creates two types of real estate investors: those who develop the properties,
and those who later purchase the properties as investments. In both instances, opportunity exists for profit. The profitability in each instance will be a function of the expertise of the party involved. In the case of the developer, his entrepreneurial talents will be involved, and in the case of the investor, her skill and knowledge will enhance the outcome.