What is the primary role of an investor in real estate?

The primary role of an investor in real estate is to analyze property based on the anticipated return on invested funds. Investors look for properties that they can purchase, rent, or improve, aiming to generate a profit. This analysis often includes evaluating various financial metrics such as cash flow, return on investment (ROI), and capital appreciation potential. By understanding the potential returns, investors can make informed decisions on which properties to acquire, holding strategies, and when to sell, thus maximizing their investment outcomes.

Occupying the property is typically a role associated with homeowners or tenants rather than investors. Managing property maintenance is a responsibility often taken on by property managers or landlords, rather than the investors themselves. Setting market prices for properties is influenced by many factors, including market conditions, but is not the primary responsibility of an investor; rather, it is shaped by market trends and the actions of multiple stakeholders in the real estate market.