To get to an answer, it may help to identify each phrase and put each one in perspective.
Home flipping is the strategy of acquiring a residence then reselling it at a profit in the smallest period possible. A house flipping pro aims to make the biggest amount of cash 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.
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 main difference between the two investment schemes is that in house flipping, the investor is looking for quick profits and real estate investors want appreciation and income from rent
House flippers target houses that they can buy at a cheaper rate than the normal market rate. In doing so, it guarantees a quick profit from a quick sale.
Usually, the house will be sold at a cost a lot less compared to its market price (within the cover anything from 40-80% lower than the market will bear).
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 is usually easy to get hold of industry professionals in the precise refurbishments needed and therefore the house will have a very good look in the end.
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 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.
For hassle free and quick return on investment, I am biased in favor of house flipping...but you be the judge!
Source: http://top-free-article-directory.blogspot.com/2012/06/home-flipping-vs-real-estate-investing.html
uekman music awards music awards giants eagles bcs rankings week 13 bcs rankings week 13 philadelphia marathon
No comments:
Post a Comment