Since the practice of barter and trading way back when, people have used goods and services to make money. Over those thousands of years, investment styles have emerged, from those who consider it a casual activity to those who approach it with an unwavering commitment. Personal investing styles vary as much as the people who choose to invest, but you can boil the different types of investors down to three general categories.

3 Different Types of Investors

Dabblers

These folks don’t assign a high priority to their investments, whether it’s for lack of interest, inexperience, or a combination of both. They have different priorities and pay nominal attention to their 401ks, and are content to let others manage their money for them.

Unless their financial advisors are top-notch, the dabblers aren’t as likely to see high growth or substantial gains from their investments as more active participants will.

Do-It-Yourselfers

The aisles of home improvement stores are filled with DIYers, or you’ll find individuals hunkered over financial newspapers while they scout for their next opportunities. People who trust their own judgment and thought processes can do well as independent investors as long as their decisions are backed up by reliable information and in-depth knowledge.

Those DIYers who buy homes solely to resell them on their own, also known as flippers, must have a solid foundation in home remodeling skills, and if they handle the sale themselves, extensive experience in real estate transactions and law. Because banks have tightened their lending rules, it’s more challenging than ever for flippers to execute the improvements so that they meet building and lending codes.

The DIYers who trade in the markets have to make the abstract concrete about their investments, which takes as much time and skill as managing building contractors.

Some people have been extremely successful on their own but it’s a path that not everyone can, or should, follow. It’s time-consuming and often risky, whether the investor is pouring concrete or over corporate reports.

See also Don’t DIY: Consider Investment Property Companies

Professional Investors

Icons like Warren Buffett define professional investors. Whether by talent or training, these types take investing seriously and may make all or most of their income from their activities. They study markets, seek out advice from experts, and know what they don’t know.

This characteristic helps make them successful. They’re secure in their capabilities and competencies, and respect the capabilities of others. In fact, of all the investment types, they’re the most likely to spend money to make it.

In real estate, for example, they might avoid fixer uppers, and use property management companies to handle the details of property selection, acquisition and day-to-day management. They’ll use trusted brokers for their investments, which frees them up for searching for their next best opportunities, and use CPAs and financial experts to manage their portfolios.

Because the pros keep an open mind and rely on the objectivity of others to help them grow their incomes, they are active players in the markets, whether it’s real estate investment, stocks, or money markets.

No matter how you identify yourself as an investor in the past, present, and future, there’s no doubt that working with experts in your chosen area will guide you and help grow your money. And as they say about the lottery in Arizona, you can’t win if you don’t play.

Talk to one of our investment specialists to learn how JWB can help you earn passive income through long term real estate investing.