Which is superior: house flipping or real estate property investing?
To obtain an answer, it may help to explain 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 quickest period possible. House flippers want to make a lot of money really fat by flipping the house, therefore the term is called house flipping.The house flipper does not hold on and rent the house. As a matter of fact, the shorter they hold the house, the better it is.
A real estate investor holds the home for rental income then selling later after he has gotten rental income.
Real estate investors may buy with the intention of selling later, but they hold the property for appreciation or for rental income.
Which form of investing is the best for you and your family?
The main differentiator is house flippers want fast cash back and real estate investors want appreciation and income from rent
House flipping pros buy homes way below market. The faster they sell the property or "flip it", the faster they can get their money back and take a profit.
Frequently, the property will be purchased at a cost much less as compared to its market price (in the range between 50%-90% below the prevailing market prices).
Renovation is the most popular way of house flipping. 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 can also be easy to get hold of specialists who identify the certain renovations considered necessary and the refurbished house will have a really nice look for resale.
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.
Dependent on market conditions and location, the house flipper can make higher return on investment (ROI) if he/she can manage to flip the houses in short times. In contrast, the buy and hold real estate investor makes his return over time through rental income and appreciation over years of holding.
The real estate investor makes money more slowly, affording him the ability to have price appreciation and rental income over time. A major advantage is if the market is poor he can hold on and receive income and not worry about resale.
The profits fetched can also be higher if the investor is getting benefits such as economies of scale where he/she is able to buy building materials at a much lower price.
I am purely biased, but house flipping is my preferred way of making money in real estate, what do you think?
To obtain an answer, it may help to explain 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 quickest period possible. House flippers want to make a lot of money really fat by flipping the house, therefore the term is called house flipping.The house flipper does not hold on and rent the house. As a matter of fact, the shorter they hold the house, the better it is.
A real estate investor holds the home for rental income then selling later after he has gotten rental income.
Real estate investors may buy with the intention of selling later, but they hold the property for appreciation or for rental income.
Which form of investing is the best for you and your family?
The main differentiator is house flippers want fast cash back and real estate investors want appreciation and income from rent
House flipping pros buy homes way below market. The faster they sell the property or "flip it", the faster they can get their money back and take a profit.
Frequently, the property will be purchased at a cost much less as compared to its market price (in the range between 50%-90% below the prevailing market prices).
Renovation is the most popular way of house flipping. 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 can also be easy to get hold of specialists who identify the certain renovations considered necessary and the refurbished house will have a really nice look for resale.
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.
Dependent on market conditions and location, the house flipper can make higher return on investment (ROI) if he/she can manage to flip the houses in short times. In contrast, the buy and hold real estate investor makes his return over time through rental income and appreciation over years of holding.
The real estate investor makes money more slowly, affording him the ability to have price appreciation and rental income over time. A major advantage is if the market is poor he can hold on and receive income and not worry about resale.
The profits fetched can also be higher if the investor is getting benefits such as economies of scale where he/she is able to buy building materials at a much lower price.
I am purely biased, but house flipping is my preferred way of making money in real estate, what do you think?
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To find out more about house flipping, as well as on how to get started flipping houses by visiting our website.. This article, Real Estate Investing and The House Flip: The Distinctions Between Them is available for free reprint.