Is House Flipping The Way to Make Money In Real Estate?
Which is preferable: property flipping or real-estate investing?
To get to an answer, it helps to clearly define each phrase and put them in perspective.
Property flipping is the practice of buying a property and then selling it for a financial gain within the shortestperiod possible. An investor is aiming to make a good sum of profit really fat by flipping the house, therefore the term is called house flipping.The house flipper does not hold on and rent the house. In fact, the shorter period oftime the house flipper holds the property, the better their profits usually are. If you are looking to purchase Nationwide Bank Foreclosures (Zero to light Rehab) and buy foreclosed homes or Commercial Properties in Bulk (Bulk REOs) in the USA, then give us a call today, we are Direct to Top tier 1 Banks in the USA. Call 918-770-8777when it comes to your property needs, OR Click Here to go to our website.
Real estate investing is all about buying and holding realestate then selling later after he has gotten rental income.
Real estate investors may buy with the intention of selling later, but usually hold the property for years or forever.
Which form of investing is the best for you and your family?
The most major difference is a house flipper wants quick cash profits while the real estate investor is more concerned with steady income.
A house flipper aims to buy at a below market rate. Indoing so, it guarantees a quick profit from a quick sale.
Frequently, the property will be purchased at a cost muchless as compared to its market price (in the range between 50%-90% below the prevailing market prices).
Totally gutting an old beat up house is a popular way that most house flippers get started. The house flipper buys the house, renovates and sells it in a very short time.
House flip renovations are popular because if you estimate your fix up costs, you can turn a profit quickly. It is also easy to acquire professionals in the exact renovations required and the house will look really good for a quick resale when its done.
This enables the house flipping pro to get an immediate market take and get a excellent price that is lucrative.
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 houseflipper works in, more money can be made if the marketallows for a quick sale. In contrast, the buy and hold realestate investor makes his return over time through rental income and appreciation over years of holding.
With buy and hold real estate, the investor makes moneythrough income, provided his expenses are less than hisincome from rent. There is one major advantage in that the investor can build houses as per the needs of the current buyers (given the changing trends in life and buyers requirements).
Additionally, the buy and hold real estate investor can alsoleverage bulk buying of renovation materials if he is going to do multiple properties at once
I am purely biased, but house flipping is my preferred way of making money in real estate, what do you think?