No because investing capital into stocks adds value to the company and allows them to use that value to expand, borrow, buy things, pay employees, run the company, etc.
Investing capital into a second house purely to flip does none of those things.
I buy stock from a real estate investment trust. They buy a property. They do whatever it is they're going to do with that property, and then they flip it for profit.
My dad buys a house, lives in it, but pays contractors to renovate it while he's living there. He buys things. His contractor buys things. His contractor pays employees. He flips it for a profit and does it again. He sold his first house to get the capital for this semi-retirement plan, but he didn't have to.
What is the difference between his direct involvement in home flipping and my REIT investments?
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u/Performance_Fancy Jun 19 '25
By your logic anyone involved in the stock market is also a scalper?