Which is better: property flipping or real estate property investing?
To get to an answer, it may help to identify each phrase and put each one in perspective.
House flipping is the strategy of buying a property and then reselling it for a gain within the least amount of period manageable. House flippers want to make alot of money in the shortest time possible, period.He/she does not hold onto it for the purposes of income. They want to hold the house, then sell in the shortest period of time.
Real estate investors want to keep the property for income then selling later after he has gotten rental income.
Real estate investors may buy with the intention of selling later, but may hold onto the house for many years.
Which is right for you?
The big difference is house flipping pros get their money back fast with a quick sale while investors want to make money in the long term
House flipping pros buy homes way below market. In doing it this way, the house flipper locks in fast profits.
Usually, the real estate will be sold at a price much less as compared to its selling price (in the range from 40-80% below market price).
Buying and renovating a home is the easiest way to house flip. The house flip pro purchase the house, quickly renovates it and then sells it under a month or so.
House flip renovations are popular because if you estimate your fix up costs, you can turn a profit quickly. It can be easy to find experts who know the particular renovations required and the refurbished house will have a really nice look for resale.
This permits the home flipper to get a quick market for the house and at the same time getting a very good price for the house.
House flipping tends to be simpler than buy and hold real estate investing because the flipper does not deal with landlord issues and the profit is made more quickly instead of it being done over time.
Depending on the market or community where a house flipper works in, more money can be made if the market allows for a quick sale. The real estate investor holds the property and rents it to renters, thus making cash flow instead of a quick buck.
With buy and hold real estate, the investor makes money through income, provided his expenses are less than his income from rent. A big advantage to buy and hold real estate is that the real estate investor does not need to sell immediately and can wait for market conditions to improve, then worry about resale when the time comes.
Additionally, the buy and hold real estate investor can also leverage bulk buying of renovation materials if he is going to do multiple properties at once
Although I prefer house flipping, I know the benefits of buy and hold real estate investing so I can see it both ways, What is your opinion?
To get to an answer, it may help to identify each phrase and put each one in perspective.
House flipping is the strategy of buying a property and then reselling it for a gain within the least amount of period manageable. House flippers want to make alot of money in the shortest time possible, period.He/she does not hold onto it for the purposes of income. They want to hold the house, then sell in the shortest period of time.
Real estate investors want to keep the property for income then selling later after he has gotten rental income.
Real estate investors may buy with the intention of selling later, but may hold onto the house for many years.
Which is right for you?
The big difference is house flipping pros get their money back fast with a quick sale while investors want to make money in the long term
House flipping pros buy homes way below market. In doing it this way, the house flipper locks in fast profits.
Usually, the real estate will be sold at a price much less as compared to its selling price (in the range from 40-80% below market price).
Buying and renovating a home is the easiest way to house flip. The house flip pro purchase the house, quickly renovates it and then sells it under a month or so.
House flip renovations are popular because if you estimate your fix up costs, you can turn a profit quickly. It can be easy to find experts who know the particular renovations required and the refurbished house will have a really nice look for resale.
This permits the home flipper to get a quick market for the house and at the same time getting a very good price for the house.
House flipping tends to be simpler than buy and hold real estate investing because the flipper does not deal with landlord issues and the profit is made more quickly instead of it being done over time.
Depending on the market or community where a house flipper works in, more money can be made if the market allows for a quick sale. The real estate investor holds the property and rents it to renters, thus making cash flow instead of a quick buck.
With buy and hold real estate, the investor makes money through income, provided his expenses are less than his income from rent. A big advantage to buy and hold real estate is that the real estate investor does not need to sell immediately and can wait for market conditions to improve, then worry about resale when the time comes.
Additionally, the buy and hold real estate investor can also leverage bulk buying of renovation materials if he is going to do multiple properties at once
Although I prefer house flipping, I know the benefits of buy and hold real estate investing so I can see it both ways, What is your opinion?
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