Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
Are you primarily a real estate investor, or a real estate trader?
Investor - invests for long term appreciation, cash flow, tax benefits, and loan amortization
Trader - invests for short term profits, usually thru purchase and relatively quick resale, taking advantage of under market purchase price, value added rehab or repositioning, area gentrification, or superior knowledge.
In my initial property purchases 48 years ago I was an investor. Within 4 years I transitioned to (primarily) trading. In 2001 I began building a long term investment portfolio while still maintaining “trading activity”, and was 50/50 from 2007 - 2025. Last year I started a program that will lead to at least 75% investing and 25% trading, or perhaps as much as 80 -85% investing and as little as 15 -20% trading, based on percentage of total net assets.
Anyone else care to share about their real estate investing career or where they are currently in the investor/trader spectrum?
I consider myself an investor. I agree with your classification. I might do it differently (passive vs active), but it means the same thing. I think what you call trading are very active businesses that require day to day attention. They may generate more money short term, but in my opinion they also come in the realm of trading time for money. I prefer investing spectrum where you invest and wait - the wait is usually longer in real estate for it be meaningful. But it will give you the rich returns and create a long term wealth for you and your future generations.
