How do you Classify your Participation in the Real Estate Industry?

Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes

I’ve thought a lot about this, trying to make sense of this massive industry. From a PARTICIPANTS perspective I’ve decided that there are 3 MAIN (tremendous if not unlimited number of SUB categories) categories.

BUSINESS participant - broker, lender, appraiser, property manager, wholesaler, etc.

INVESTOR (passive) - invest in REITS, limited partner or non managing member in syndications, private equity real estate funds investor, investor in real estate directly where financial advisor handles ALL aspects of asset and property management

INVESTOR (active) - direct real estate ownership, syndicator, direct private lender, fix n flip, etc.

So, I operate MOSTLY in the INVESTOR (active) category, but I have constant involvement in both the BUSINESS aspect as well as the INVESTOR (passive) category.

Which category(s) are you in?

Private Mortgage Financing Partners, LLC

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Rene HosmanPro Member

Rental Property Investor · Denver, CO · Member since 2024 · 583 posts · 653 votes

What a great question @Don Konipol ! I may steal this one for a poll sometime soon...

Personally I am an INVESTOR (active), and a BUSINESS (I self-manage) and I'm looking at opportunities to invest passively by the end of this year. I'm getting a self directed IRA set up with Equity Trust and have been following J Scott and Brian Burke to learn more about passive investing and paroozing the passivepockets.com forums to learn more from everyday people who are currently passively investing.

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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
1y
I am an active investor.
1 Reply
Rene HosmanPro Member
Rental Property Investor · Denver, CO · Member since 2024 · 583 posts · 653 votes
1y
What a great question @Don Konipol ! I may steal this one for a poll sometime soon...
Personally I am an INVESTOR (active), and a BUSINESS (I self-manage) and I'm looking at opportunities to invest passively by the end of this year. I'm getting a self directed IRA set up with Equity Trust and have been following J Scott and Brian Burke to learn more about passive investing and paroozing the passivepockets.com forums to learn more from everyday people who are currently passively investing.
6 Reply
- Don KonipolBusiness Member
  OP
  Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
  1y
  Quote from @Rene Hosman:
  
  What a great question @Don Konipol ! I may steal this one for a poll sometime soon...
  Personally I am an INVESTOR (active), and a BUSINESS (I self-manage) and I'm looking at opportunities to invest passively by the end of this year. I'm getting a self directed IRA set up with Equity Trust and have been following J Scott and Brian Burke to learn more about passive investing and paroozing the passivepockets.com forums to learn more from everyday people who are currently passively investing.
  You couldn’t find two better investors to follow than J Scott and Brian Burke!
  Private Mortgage Financing Partners, LLC
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  4 Reply
- Adekunle Babatunde
  Investor · Dallas, TX · Member since 2026 · 52 posts · 9 votes
  8mo
  Quote from @Don Konipol:
  
  Quote from @Rene Hosman:
  
  What a great question @Don Konipol ! I may steal this one for a poll sometime soon...
  Personally I am an INVESTOR (active), and a BUSINESS (I self-manage) and I'm looking at opportunities to invest passively by the end of this year. I'm getting a self directed IRA set up with Equity Trust and have been following J Scott and Brian Burke to learn more about passive investing and paroozing the passivepockets.com forums to learn more from everyday people who are currently passively investing.
  You couldn’t find two better investors to follow than J Scott and Brian Burke!
  Hello Don, do you deal with properties in DFW?
  
  0 Reply
Evan Polaski
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
1y
Generally, agree with these classifications. I would argue that syndicators are often more Business then they are Investors. But this is very nuanced, and I can certainly think of many syndicators that seem to act more as passive investors than active.
That being said, I would put myself in the INVESTOR (active) category.
2 Reply
- Don KonipolBusiness Member
  OP
  Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
  1y
  Quote from @Evan Polaski:
  
  Generally, agree with these classifications. I would argue that syndicators are often more Business then they are Investors. But this is very nuanced, and I can certainly think of many syndicators that seem to act more as passive investors than active.
  That being said, I would put myself in the INVESTOR (active) category.
  I agree with you - syndicator is a tough one to classify. It can easily cover both active investor and business; if the syndicator invests his own money in the property purchase he’s an active investor, his work around running the syndication tends to look a lot like running a business. A lot depends on the size of the syndication and exactly what’s involved; the investor who finds a deal, offers participation to two other investors who go in with him, and that’s it, well that’s probably active investing. The syndicator raising capital from a base of 100 investors and getting compensated with “carry”, that’s more a business model.
  
  My partner likes to state we are in a real estate BUSINESS, I prefer to believe I’m an active investor first and foremost. But then again he handles operations,I handle the investing.
  Private Mortgage Financing Partners, LLC
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Ryan IrwinPro Member
Investor · Ankeny, IA · Member since 2022 · 158 posts · 129 votes
1y
Great question @Don Konipol.
As an entrepreneur, I'm always looking for multiple revenue streams. While I currently have three businesses (one of those being real estate), within each one of them, there are multiple revenue sources.
To answer your question with regards to real estate, I spend most of my time as an investor (fix & flip, STR, LTR), but also passive (syndication) and in the business participant (private lending).
Just like diversifying an investment portfolio, diversifying real estate revenue streams helps protect against volatility.
2 Reply
Charles Perkins
Member since 2024 · 222 posts · 161 votes
1y
I'm an active investor. Semi retired at this point since the real estate keeps me active. This was my model from the start.
0 Reply
James McGovern
Flipper/Rehabber · Bloomfield CT · Member since 2020 · 1k+ posts · 408 votes
1y
Good that you don't consider wholesalers as investors in your definition
0 Reply
Becca F.
Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
1y
ACTIVE investor (mostly), but if we're getting down to details, PASSIVE investor (very small part - REITs)

Am I BUSINESS participant if I'm self managing? Since I'm the property manager for two properties. Is there overlap with these categories? Just curious.

Great points about the syndication and the different roles!
0 Reply
Bryce JamisonPro Member
Rental Property Investor · Mebane, NC · Member since 2015 · 493 posts · 439 votes
1y
@David Greene talked about this recently on his new podcast.
He recommends being an overall real estate professional so you can make money in numerous ways and in different economic climates, and more importantly, you can help folks in all stages of their life and with all their real estate needs.
Sometimes your helping folks find a good handyman, sometimes you're renting them one of your units only to be their agent later on when they're ready to buy, then maybe you're giving them house hacking tips after they buy.
0 Reply
- Don KonipolBusiness Member
  OP
  Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
  1y
  Quote from @Bryce Jamison:
  
  @David Greene talked about this recently on his new podcast.
  He recommends being an overall real estate professional so you can make money in numerous ways and in different economic climates, and more importantly, you can help folks in all stages of their life and with all their real estate needs.
  Sometimes your helping folks find a good handyman, sometimes you're renting them one of your units only to be their agent later on when they're ready to buy, then maybe you're giving them house hacking tips after they buy.
  I can’t disagree with that, although in this age of almost unlimited information, I believe in the need to specialize.
  Private Mortgage Financing Partners, LLC
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David GreeneBusiness Member
Real Estate Broker · San Francisco Bay Area, CA · Member since 2012 · 225 posts · 266 votes
1y
Funny you mention this. Literally just talked about it again on the real talk realtor episode today. In our market today it's getting increasingly difficult to stay busy. Finding your identity as a real estate professional, not a "real estate agent", "property manager", "transaction coordinator", makes a big difference!
Podcast Guest on Show #12
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- Don KonipolBusiness Member
  OP
  Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
  1y
  Quote from @David Greene:
  
  Funny you mention this. Literally just talked about it again on the real talk realtor episode today. In our market today it's getting increasingly difficult to stay busy. Finding your identity as a real estate professional, not a "real estate agent", "property manager", "transaction coordinator", makes a big difference!
  
  Agreed. When I hear an inexperienced / unknowledgeable "newbie" espousing the "deals" he's going to earn $100k on "flipping" or "wholesaling" (while they're listed on MLS) I ask them exactly what "added value" they intend to bring to the transaction that would prompt a buyer to pay $100k over list price or a seller sell for $100k under market - and NOBODY I've asked has a clue…..
  
  I get the impression these people think they just have to run a list of properties with the same characteristics on MLS; they all have listing prices of say $500k, except one that says "desperate seller" is listed at $400k, and they send out an email to their "buyers" and "flip" it to the buyer willing to pay $495k.
  Private Mortgage Financing Partners, LLC
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Ryan RomingerBusiness Member
Real Estate Broker · Indianapolis, IN · Member since 2018 · 340 posts · 144 votes
1y
I primarily operate in the Business category as a property manager and realtor, working directly with investors and handling the day-to-day operations that support their portfolios.
I’ve found that being in both roles gives valuable perspective—you understand not just how deals pencil out, but how they actually perform over time. Long-term, I’m also exploring ways to diversify into more "passive" positions, especially as a way to build income without having to manage everything personally.

[email protected]317-935-0075
Intrigue Real Estate & Property Management4.6285 Reviews
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
1y
Currently I do about a dozen buyer broker deals a year where I help them buy NNN single tenant properties.
On the syndication side I buy value add single tenant properties blend and extend with lower years remaining in primary term and also dark buildings NNN still paying rent. We buy them all cash with a separate LLC for each one. I am buying about 1 a month trying to ramp up to 2 a month.
The floor for purchasing is a 9 cap. The 100 points is needed for my GP fee and calculating 10% of the annual NOI to watch over the property. Charging 10% of NOI is easier for accounting than recalibrating complex waterfalls every time the NOI grows. We typically 8 pref to start. Most LP's accredited investors on value add in any asset class want 8 pref to start minimum.
Between the broker deals, syndication fees, and back end equity growth the projection is about 3 to 5 million a year net worth trajectory and growing. I put in 30hrs a week and that is it. I care about time and making incredible memories with my family and friends. Making money is great but not the end all to be all above everything. People and experiences are the true treasures of the world.
Podcast Guest on Show #47
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Lorraine Hadden
Real Estate Broker · CA · Member since 2024 · 60 posts · 42 votes
1y
Right now I'm operating in all three.
I own/operate a RE Brokerage (as a non profit foundation). I am also an active investor (buy/hold outside CA - although I live in CA, w/property manager in place) while also investing passively in real estate for steady income (RE advisor handles all aspect of the asset and property management).
I find that I navigate between all three categories.
1 Reply
- Don KonipolBusiness Member
  OP
  Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
  1y
  Quote from @Lorraine Hadden:
  
  Right now I'm operating in all three.
  I own/operate a RE Brokerage (as a non profit foundation). I am also an active investor (buy/hold outside CA - although I live in CA, w/property manager in place) while also investing passively in real estate for steady income (RE advisor handles all aspect of the asset and property management).
  I find that I navigate between all three categories.
  Which do you find most profitable
  Private Mortgage Financing Partners, LLC
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Jakob Mikhitarian
Member since 2025 · 86 posts · 25 votes
1y
@Don Konipol Great question! I am involved with the business side, as an investor focused agent based out of New Hampshire. Not yet involved with passive investor and active investor, however, I will become an active investor once I've saved up enough to purchase a house hack in the local area. Which category do you like the best?
1 Reply
- Don KonipolBusiness Member
  OP
  Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
  1y
  Quote from @Jakob Mikhitarian:
  
  @Don Konipol Great question! I am involved with the business side, as an investor focused agent based out of New Hampshire. Not yet involved with passive investor and active investor, however, I will become an active investor once I've saved up enough to purchase a house hack in the local area. Which category do you like the best?
  Active investor, for sure - but not “too active”, LOL. I want a property manager between the tenants and myself.
  Private Mortgage Financing Partners, LLC
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  1 Reply
Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
1y
Investor (passive), investor (active), business adjacent (cpa that serves real estate investors)
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Herminia Turingan
New to Real Estate · CA · Member since 2025 · 1 post · 0 votes
1y
I’m at the beginning of my journey as a real estate investor, driven by a strong desire to build long-term wealth and create opportunities through strategic investing. My focus right now is on wholesaling and rental properties—two powerful entry points that allow me to learn the fundamentals of the market while actively working toward my financial goals.

I may be new, but I’m not passive. I’m taking action every day—learning from experienced investors, networking, analyzing deals, and immersing myself in the business side of real estate. My goal is to become a hands-on, knowledgeable investor who brings value to every partnership, deal, or project I’m involved in.

This is more than a side hustle—it's the foundation of the legacy I'm building. I'm here to learn, contribute, and grow in the real estate space one deal at a time.
0 Reply
Muhammad Danish
Property Manager · Tampa Florida, USA · Member since 2025 · 71 posts · 2 votes
1y
Hi Herminia,
That’s awesome — your journey sounds a lot like mine! 🙌
I’m also focused on wholesaling and rentals right now and taking action every day to learn and grow.
I’m currently building my buyers list and trusted seller network, so I’d love to stay connected. Maybe we can share experiences, deal opportunities, or collaborate in the future as we both grow in this space.
Looking forward to hearing about your progress and staying in touch! 🚀
0 Reply
Amanda Smith
Specialist · Member since 2025 · 52 posts · 10 votes
9mo
Really like the way you broke this down — the 3-category framework makes the whole industry much easier to visualize.

I’d say I’m closest to the active investor category, mainly because most of my day-to-day revolves around acquisitions workflows, conversation frameworks, and the front-end process of moving deals from lead → appointment → contract. But at the same time, I end up interacting with the business side quite a bit, especially when it comes to deal flow, systems, and communication between different roles.

I’m also brushing against the passive side indirectly — mostly through investors who operate in both lanes and want cleaner systems around how opportunities are brought to them.

So I’m definitely strongest in active, but with overlap into the first two categories because of how intertwined everything becomes when you’re working deals consistently.

Great breakdown — curious to see where everyone else falls on this spectrum.

1 Reply
Brandon SchwabPro Member
Member since 2025 · 30 posts · 10 votes
9mo
I am a INVESTOR (active) as I’m working on building our senior living business through a roll up strategy helping nurses and doctors retire . At the same time, I provide opportunities for people to passively invest in senior living through a private credit fund SPV.
[email protected]
1 Reply
- Don KonipolBusiness Member
  OP
  Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
  9mo
  Quote from @Brandon Schwab:
  
  I am a INVESTOR (active) as I’m working on building our senior living business through a roll up strategy helping nurses and doctors retire . At the same time, I provide opportunities for people to passively invest in senior living through a private credit fund SPV.
  I’m curious about that Brandon. Can you provide more detail?
  Private Mortgage Financing Partners, LLC
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- Brandon SchwabPro Member
  Member since 2025 · 30 posts · 10 votes
  9mo
  Quote from @Don Konipol:
  
  Quote from @Brandon Schwab:
  
  I am a INVESTOR (active) as I’m working on building our senior living business through a roll up strategy helping nurses and doctors retire . At the same time, I provide opportunities for people to passively invest in senior living through a private credit fund SPV.
  I’m curious about that Brandon. Can you provide more detail?
  of course, happy to connect . messaged you my cell number.
  [email protected]
  0 Reply
Jackson Njogu
Real Estate Agent · Nairobi, Kenya · Member since 2025 · 6 posts · 3 votes
9mo
I agree that while the subcategories are vast, those three participant groups capture the core roles very clearly.

Your explanation of how you operate across the active investor space, while still engaging with the business and passive investor sides, makes a lot of sense and reflects a well-rounded perspective.

I'm an INVESTOR and into businees.
1 Reply
David PeschioBusiness Member
Richmond, VA · Member since 2019 · 358 posts · 181 votes
9mo
I work in the real‑estate business as a property manager and realtor, supporting investors and handling the daily operations that keep their portfolios running smoothly. I’m also an investor myself, which helps me understand exactly what owners need and expect. I bring a practical, investor‑minded approach to every property I manage.
[email protected]804-909-1929
PMI Richmond4.4299 Reviews
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David PeschioBusiness Member
Richmond, VA · Member since 2019 · 358 posts · 181 votes
9mo
Thanks @Don Konipol - hopefully we can get an update on results once you get more to reply.
[email protected]804-909-1929
PMI Richmond4.4299 Reviews
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Mustafa Ibrahim
Wholesaler · Nationwide · Member since 2026 · 13 posts · 5 votes
8mo
I fall under the BUSINESS participant category. I provide motivated and distressed seller leads to real estate investors nationwide. I work mainly on the acquisition and lead generation side, helping investors keep their deal flow consistent.
1 Reply
Joel Miller
Member since 2011 · 152 posts · 113 votes
8mo
I have been an active investor in rentals since 1978, a house flipper since 1991, and a hard money lender since 2018.
1 Reply
Diana KhanPro Member
Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 403 posts · 162 votes
7mo
Hi Don! This is a great breakdown. I’m Diana Khan, and I live at the intersection of Business and Active Investor. Operating as an attorney gives me a unique lens on risk management. I also offer a mentorship program for those looking to scale their active investments with a solid legal foundation. Thanks for sharing your perspective!
[email protected]240-266-0291
2 Reply
Sterling PorterBusiness Member
Accountant · Cary, NC · Member since 2019 · 9 posts · 6 votes
6mo
Hello Don. I do like the way you have split the categories. I would consider myself an Investor (active) as well. As a CPA, this may be a good way to frame the question to my investor clients to determine if they are considered real estate professionals according to the tax code. Investors (active) and business participants can take losses. An investor (passive) would have their losses limited. Thanks for the post.
[email protected]919-335-8429
Sterling Porter CPA PLLC
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