A lot of people today prefer to invest in the real estate market than the stock exchange because of the following reasons:
• Real estate is a predictable market.
• It provides inflation hedge because the investment cash stream and rental fee increase with the inflation rate.
• Real estate investment can build up your equity, which you can use for financing other investment opportunities. It is a less expensive way of funding other investments.
• When the property is not rented out, you can use it as a residence. In other words, investing in the real estate market is an excellent choice because you can use it in many different ways, either for personal use or business purpose.
As a real estate investor, there are different investing strategies you can use to generate an enormous and continuous flow of money. One of the popularly used strategies is flipping. It is when an investor buys a property with the goal of reselling the property for a profit. To resell the property at a much higher price, the investor does some major renovations to make the property appealing to buyers. Some don’t have time and patience renovating the property, and so they generate profit through price appreciation.
The advantages of flipping
• Quick Profit – A lot of investors prefer to flip houses because it enables them to make money pretty quickly. As a matter of fact, it does not only offer quick money but a huge profit too, especially when done correctly. Many real estate investors generate money in just a few months using this method.
• Learn new things and gain new experience – Flipping a house includes a lot of stuff from the construction, understanding the local market, and the real estate in general. Through it, you will be able to broaden your horizon, especially in the different areas of the industry.
• Increase your network – Through property flipping, you will be able to meet new people who will then help improve your system. You get to associate yourself with different people including contractors, insurance brokers, building inspectors, realtors, attorneys, and the likes.
• A sense of fulfilment – Not everyone has an eye for renovating a property. If you take the flipping way, then it only goes to show that you have an eye to see the potential in a property. After a successful flip, you will be able to feel fulfilled and accomplished. You will also enjoy a quick return on investment, but no amount will ever compare to the feeling of worth and personal fulfilment.
The disadvantages of flipping a property
• A possibility of losing money – Just like any other investing strategies, there is a tendency that you will lose money, especially when a flip becomes a flop. Some of the reasons for losing money are unanticipated expenses, holding cost, higher taxes, losing profit because of the high taxes, and experiencing difficulty in selling a property.
• Stress- When it comes to flipping a property, stress is surely your constant companion. Just imagine the experience you have to go through finding a property, renovating it, and finding a buyer.
Scott Yancey from Flipping Vegas
If you wish to find out more about flipping and other available real estate investing method, then you should contact Scott Yancey. He is a successful real estate investor and one of the stars of the A&E TV show, Flipping Vegas. Scott, his wife, Aimee, and a team of contractors choose a property in Las Vegas and flip it to generate profit. Through his TV show and free book, he was able to share his real estate investing knowledge to his audience.