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Updated almost 16 years ago, 03/03/2009
Are You Passive or Aggressive?
Real estate investing brings out a very diverse group of people doesn't it?
I have met some great minds, as well as some people many would classify as flat out loons!
I was just wondering how people look at themselves in their investment mirror.
Do you feel you are a passive, or aggressive investor?
Have you changed your philosophy over time, or because of the current market?
- BiggerPockets Founder
- Maui, HI
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Don't forget about those passive-aggressive investors too!
Aggressive, especially in dealing with deadbeat and criminal tenants.
Mike
My real estate investing philosophy is conservative.
I won't buy another rental until I've rehabbed and rented the ones I have. I won't over-extend or over-leverage myself.
I'll do my best to keep my good tenants, but that attitude ends when the rent's not on time.
when i "inherited" my first project back in 00' i was very passive. It was all I could do to drag my butt from my full time day job to work on that! From web developer to "laborer" was a BIG shift for me. I saw things during that project I couldn't talk about. (skeletal remains of critters, still live critters...) I did things to that property that i don't like to talk about but i learned so much.. (what i will pay to have someone ELSE do it for me). Now I've seen it all...
When we actually accidentally made some money on it we became aggressive when it was a property we determined that we can make money on. Because our county doesn't have a lot of movement as other areas do, we know when to wait patiently & when to dig into a deal.
In short, we are passive-aggressive investors.
The reason why I brought up this discussion is because I feel it is good to take a step back and evaluate our positions on a regular basis.
Sometimes we look in the mirror and see things much differently than what the reality is......
Example:
I have a friend who feels that he is very passive, yet I always see him stretching himself very thin financially and emotionally?
So he is really aggressive, and just does not want to admit it! :lol:
On the other hand...
I feel I am very aggressive, but most of the people that know me well would tell you that I am a pretty conservative guy?
That is what I love about the BP forums, it allows you to see so many points of view and styles.
It helps to keep a clear picture of who you are, and where you want to go! :wowie:
Overleveraging is a mistake made by both passive and aggressive investors. One should never overextend be they passive or aggressive.
To answer your question for me, I am an aggressive investor. In fact, I am aggressive at just about everything, it is in my Italian blood I guess. I am ahrd on myself and hate to lose, so I do everything possible to avoid a loss, both in business and in sports. :lol:
My wife tells me I'm OCD on everything. When I'm playing, I play overly hard. When I'm investing, I OVERDUE it like right now. I'm in Ms and have an offer on a 64 unit right now and visitied a Bank today and made them a proposal they're thinking about on a larger project. Then, I'll go passive on Real estate again and go play....
I'd say I'm more aggressive than passive, though sometimes the approach changes depending on what the situation is. :)