What is a propertypreneur?
“An entrepreneur is someone who seeks opportunities and develops a business system for the purpose of creation of wealth.”
To me this is one of the best definitions I believe arrived at by the researchers of entrepreneurship.
So what is a “property-preneur” then?
A propertypreneur is the person who acts as an entrepreneur using property as his medium.
It is someone who looks at property with a creative vision to spot an opportunity, then undertakes to create wealth in the process.
Now in many cases that is resembled by major property developers who take wastelands and turn them into an urban center or a suburban sanctuary. But here in Malaysia, I find that there are enough opportunities and financial tools that would allow the smallest individual investor to become a proper propertypreneur.
The number and variety of opportunities are mind-blowing, but it’s for those with the right mindset and the right kind of thinking. Vision is key. Resources are secondary.
You see, good property today is about VALUE.
Investors who buy a property and just wait for appreciation to bring them a profit, are actually speculators. Neither the economy can tolerate too many of them for long, nor can they do that in all market conditions.
The right property investor needs to think like an entrepreneur: think of ways to add value to their property, in order to add value to the community.
The property is NOT an asset unless it is generating cash return (Robert Kiyosaki wrote extensively on that), and the real cash is not in flipping a condo unit that wasn’t built yet or renting out an empty shophouse for 3%, but in what I call “amplifying” a property and adding value to it to generate a higher cash return.
– Think of a condo unit fitted with everything a family would enjoy from a built-in oven to a Jacuzzi. It will yield a seriously higher rental return than a bare unit with a few basic necessities provided by the original generic developer.
– An office space that is customized with modern facilities, open working space and internet connectivity can become a modern efficient business center and leased out to an operator at a much higher return than just rent from a normal office tenant.
– Converting a warehouse to an indoor go-karting arena yielded 3 times as much income when leased to a go-kart operator whose clients much preferred the sheltered track.
Look at McDonalds… their franchise founder Ray Kroc always brags about how their core business is real estate, not burgers. They started by leasing land plots and their buildings and then setting them up for franchisees to operate… Today they are one of the largest property owners in the World and their income from property is more than twenty times higher than all the royalties and revenue they make from hamburgers.
Propertypreneurship from the small investor is a frame of mind, a vision, and a growing trend that could probably build new communities, neighborhoods, and economies.