Real estate investing can be seen as a complex issue, but that is only because there are so many choices. When you invest, you have a virtually unlimited array of ways to make money. But that entails being able to make choices. You have to decide how much you will learn about each aspect of real estate, whom to add to your team, where to seek properties, whether a particular property is a good one for you-and on and on.
One question you will find yourself faced with is what to do with a property once you have purchased it. You may not be the type of investor who wants to buy a property and hold on to it for a long time. You may not want to deal with property managers and tenants or to see to the upkeep of a piece of real estate. If these things don't appeal to you in the slightest, your other option is flipping.
Flipping a property is simply the practice of selling it as soon as you buy it, often at the same closing. At the very latest, flippers tend to begin the selling process the day of the sale. Some even begin before they own the property, which is very risky business. However one goes about doing it, flipping always entails a mad rush to the auction block because an empty property is always a liability.
However, when you hold a property, you have the opportunity to raise that property's value. If you get a really good deal, the amount you have paid for it will probably be a drop in the bucket compared to what you stand to make from it. And when you do decide to sell it, you will be able to do so at your leisure and get more than you would have by flipping.
This holds true especially if you property is a multi-family dwelling such as an apartment high rise. If it is a good property in a good location, and you take care of it, chances are that occupancy is going to stay up. With a property like that, your earnings tend to increase exponentially. With good management, that is almost guaranteed.
Speaking of management, you will need to decide whether you will do that yourself or hire a management company to do that for you. If you own a particularly large piece, or if you own many pieces, you will have to hire a manager. Ken McElroy, author of "The ABCs of Real Estate Investing," strongly suggests that you hire a real estate management company so that your talents and your time will be put to better use elsewhere.
Those are the sorts of things you will have to consider if you hold a property.
Ultimately, however, whether you flip a property or hold it depends on what you would rather spend your time doing. Perhaps you thrive on the fast-pace workday that flipping entails. Maybe the adrenaline rush feels like an adventure to you. In that case, you should learn the proper way to flip properties (i.e., wait until you actually own a property to sell it and don't approach buyers at the very closing where you acquired a property).
However, if the idea of nurturing a property appeals to you, then buying and holding is the way to go. Depending on your talents, you personally may be able to make more money working one way as opposed to another. It's totally up to you.
Alex Anderson Has Sites For Minneapolis Real Estate Agents, St. Cloud Investment Property and Investment Properties.
- Related Videos
- Related Articles
- Ask / Related Q&A
- Child Support in Minnesota - Mn
- Playing the Minnesota Lottery
- Vacationing in Minnesota
- Northern Minnesota Real Estate
- Places to Meet Singles in Minnesota
- Minnesota foreclosure – understand the process
- Minnesota Vikings - Bernard Berrian
- Minnesota Responds to the Rising Foreclosure Rates by Issing 3-1-1 Hotline
Installing a Home Media Room
By: Roby Pagong | 27/11/2009You are probably thinking of ways to improve the value of your property. There are tons of ways to increase its value. One of which is to have a media room. There are several benefits of having the said room. One is that you will have a place for recreation. You can watch movies with friends and family. You can play your favorite game as well as sing your heart out. This could be a great area to entertain your friends.
How to Improve Your Credit Score
By: Roby Pagong | 27/11/2009We are all aware of how important our credit scores are. It is exceptionally important when we apply for a loan. The lender has to check it first in order evaluate if he should lend you the amount you want or not. He will base his judgment on the credit reports. You will authorize him to have a copy of this. Your score will represent your ability to pay the loan if ever you are approved.
Increasing Condo Taxes Causing More Real Estate Problems in Cities
By: Karrie Rose | 26/11/2009With all of the foreclosed homes on the market at present—as well as homes that have already been on the market for an extended period of time—there is the very real possibility that American city’s condo markets are very soon going to be in even worse shape.
Common Inclusions in Florida Commercial Real Estate Lease Documents
By: Mark Ferrer | 26/11/2009If you're fairly new in your business niche, you’ll probably need a little lesson in commercial leasing. And one of the most important parts of the process is to understand the inclusions of the lease document. If you're in the state looking for the right Florida commercial real estate property, be sure you know and understand the meanings of the common details of the lease. You should know that there are several other statements that might be included in your particular lease document; the foll
Turning Your House into a Miami Rental Property
By: Mark Ferrer | 26/11/2009Homeowners who find themselves suddenly in need of moving to another location due to whatever reasons are faced with the problem of selling their home fast. This, plus the deadline they have to find the next residential property, can put tremendous pressure to anyone. Fortunately, if you're in the city and in dire need of selling your property quickly, you may want to consider turning into a Miami rental property for the meantime.
Simple Financing Tips for Miami Luxury Homes Buyers
By: Mark Ferrer | 26/11/2009Most homeowners prefer to reserve properties like Miami luxury homes for later when they are ready to trade for much larger spaces. There are also others who buy these sorts of properties as second homes or investments. Regardless of the purpose, if you're thinking of such properties, you should be prepared for the challenge; and this guide will help you do just that.
Obtain Tax Benefits When Investing in Miami Real Estate
By: Mark Ferrer | 26/11/2009In this type of real estate climate, sellers are generally advised not to hold their property any longer. Selling immediately is sometimes a must, except, maybe, for most investors. If you’re planning to sell the Miami real estate investment property you’ve just flipped, it may better to hold on a sec and wait. Tax benefits are a popular reason why investors halt their sales, and here are ways how to gain the same advantage.
Be a Smart Buyer when Searching for Aventura Real Estate Homes
By: Mark Ferrer | 26/11/2009In the past, buyers and sellers were completely dependent on rising home values and easy-to-obtain mortgages to dictate their moves. But ever since the real-estate market crunch, the process got a lot harder and simple knowledge on the market won’t make for a successful transaction. Buyers must struggle harder to snag the right property and qualify for a loan. Even if you're entering a buyer’s market, like Aventura real estate, it pays to be a smart consumer. Here are some ways to make you one.
How Real Estate Can Help You To Retire
By: Alex Anderson | 02/02/2008 | Real EstateA lot of Americans are not going to have enough money to retire. These days, it's a sad fact. Instead of complaining about that reality (and the unfairness of it all) the best action someone who wants to retire can do is just make sure that they are not the...
Investment Property Advice For Real Estate Investors
By: Alex Anderson | 04/01/2008 | Real EstateAuthor of the Rich Dad book series, Robert Kiyosaki, says his "Rich Dad" asserts that investing in real estate isn't rocket-science. He said it's simply a matter of using sound judgment. But it's common knowledge that common-sense isn't, in fact, all that typical. Kiyosaki also says, the "worst" investors are those...
Do You Have Any Goals For Building Wealth?
By: Alex Anderson | 18/07/2007 | FinanceThe money is out there. No matter how many people tell you that we are in the midst of a starvation economy, that the market is doing this or that, and that it's too risky to "play the game," so to speak, people are getting rich every day. That is...
Investment Property Messes And How To Avoid Them
By: Alex Anderson | 23/06/2007 | Real EstateIn "The ABCs of Real Estate Investing," Ken McElroy writes at length about the importance of putting together a team of experts that can help you with all the information-intensive steps of the buying, selling and upkeep of real estate. It makes sense if you consider that the first people...
Before You Invest In Real Estate...
By: Alex Anderson | 10/06/2007 | Real EstateIf you read from the Robert Kiyosaki's Rich Dad book series, you may start to wonder when exactly you can jump in and start buying up investment properties. After all, Kiyosaki spends the entirety of "Cash Flow Quadrant" telling you how you will never make your financial goals come true...
Investment Properties - Is It Best To Buy And Hold?
By: Alex Anderson | 30/05/2007 | Real EstateReal estate investing can be seen as a complex issue, but that is only because there are so many choices. When you invest, you have a virtually unlimited array of ways to make money. But that entails being able to make choices. You have to decide how much you will...
The Psychology Of Real Estate Investing
By: Alex Anderson | 08/05/2007 | Real EstateIn the 1980s, if you were going to go on a diet, magazines would tell you to "think thin." They never actually explained what that meant, but everyone knew they were supposed to do it. Adopt the psychology of the thin person, whatever that was. It follows that, in order...
7 Steps To Investing In Real Estate
By: Alex Anderson | 01/05/2007 | Real EstateFor the uninitiated, investing in real estate can seem like a big, mysterious activity that you pretty much have to be born with a special gene to do. They don't know that you can break it up into several smaller steps, and that it is only a matter of learning...