Investors

Cash Flow vs’ Fix/Flip

Flipping is no doubt a great opportunity to make large amounts of money quickly, especially in warm to hot markets.  With the sudden influx of TV shows about flipping, it seems that everyone I meet is now an “investor” looking to flip a house.  The problem with this is that most are not seasoned investors, know very little about the real estate market and even less about the process of flipping a house for profit.  Like most paths to success, flipping property has many pitfalls that can easily kill your budget and make a good flip go very bad; however, these pitfalls can easily be avoided if you have an experienced team helping you. 

A better option is to buy income property for the long term.  Don’t get me wrong, this path to success also have quite a few pitfalls for the inexperienced.  Before you invest your hard earned money in the world of real estate you may want to take the below points into consideration.  

• When flipping a home you are at the mercy of the market when it comes time to sell & often times your budget runs out before you get it sold.
• Income property affords you the luxury of selling in a hot market for much more profit
• Flipping homes usually require upfront capital to cover remodeling costs & carry costs
• Buying income property may require no remodel expenses
• Flipping homes is a steady stream of expenses until the property is sold
• Income property provides instant “monthly” cash flow
• Fixers are a liability
• Income properties are assets
• Fixers are very high risk
• Income property is a very low to moderate risk
• Fixers offer no long term security
• Income property can provide long term security / retirement insurance

If you are looking to increase your positive cash flow with real estate and would like a list of hot markets and a FREE strategic Acquisition Plan contact me directly at 619-459-2391.

For those who prefer the short term path of flipping homes contact me if you don’t have an experienced team in place and I will be happy share our proven system for flipping homes successfully.

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