When To Call Yourself a Real Estate Investor?

Question

I notice many new people on the forums calling themselves a real estate investor but they also state they have never done a transaction of any sort.  Now I am one who believes in thinking positive and seeing yourself doing things even before you do them but should one call themselves a Real Estate Investor if they have never done any type of transaction?
Thoughts anyone?

David Wedemire · Answer

Regardless of the IRS rules, you are a real estate investor when you can tell everyone you are with a straight face ;)

Mary Spalding · Answer

When you day dream about tearing out carpet and replacing countertops, lol

Teresa F. · Answer

What a great question!  Although I invest full time, it wasn't until I had been working with my LLC in place over a year that I began to tell people I was a real estate investor.  What a mistake!  Once I started identifying myself as an investor, I started receiving referrals, advice, and even tenants from friends, colleagues, and former employers.

In addition to putting you in the right mindset, referring to yourself as an investor may bring you business.

Michael Quarles · Answer

I agree with David...

There is an expression that goes "You are what you think you are" and that statement very much applies to real estate investing.

If someone asks you what you do and you tell them your day job title then you arent an investor.

Account Closed · Answer

When talking to he IRS LOL

Curt Davis · Answer

Thanks for all the opinions as I feel this is a great question as so many people give themselves a label that is not correct.

Shanequa J. · Answer

Anyone can say they are a real estate investor. It is not a protected title like a nurse or lawyer. There are many types of RE investors; some do it full time and some do it part time or quarter time. If I was a full time teacher and a part time cop and someone asked me what I did for a living, I would say I'm a teacher and a cop. 
My definition of a RE investor is someone who has made money on real estate and is looking to make more money from it.

Alex Craig · Answer

If an individual never bought a stock, yet read the Wall St. journal every day, would that make that individual a stock investor? To me, same goes with real estate.  If an individual never spent any of their money into a real estate transaction, then technically I would not consider that individual a real estate investor. Also, just because someone sells investment real estate properties does not qualify them as an investor. After all, the Smith-Nephew rep who sells hip replacements is not an orthopedic surgeon.  Personally, I would never buy anything from an investor, no matter what type of investing it may be, if that individual did not believe in it enough to be actively involved into his investment product.

Kevin C. · Answer

I am an IT Director and also a RE Investor.   I could tell you I'm a Circus Clown, but that wouldn't make me one.

Jason Davis · Answer

I believe there is a definition of a Real Estate Investor from a tax point of view.  I believe it involved number of hours of works as an investor per week.

My own opinion:
I have owned 4 personal residences. This does not make me an investor.
I have one completed one flip and have it on the market.  I did this for a profit.  I think I am an investor based on this.

Not sure I will fit the tax code definition.
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When To Call Yourself a Real Estate Investor?

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