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Which is the most suitable: house flipping or real-estate investing? To get to an answer, it may help to explain each term and put each of them in perspective. Home flipping is the process of acquiring a house then reselling it for a profit within the quickest period possible. House flippers try to make the most money in the shortest time possible, period.House flippers don't hold onto house, they flip them quick. As a matter of fact, the less time they own the home, the better their profits. Real estate investing is all about buying and holding real estate and at a later date selling the house for a longer term profit. Investors in real estate buy real estate and intend on selling at some point, but usually hold the property for years or forever. OK, so which is better? The most major difference is a house flipper wants quick cash profits 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. Generally, the property will likely be sold at a cost substantially less than its selling price (within the range from fifty to ninety percent below the prevailing market prices). Renovation is the most popular way of house flipping. The house flip pro purchase the house, quickly renovates it and then sells it under a month or so. Renovating is much cheaper as one can precisely estimate the cost of materials and labor required to do it. It can also be possible to find industry professionals in the specified renovations considered necessary and the refurbished house will have a really nice look for resale. This permits the home flipper to get a quick market for the house and at the same time fetching a great 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. Where a house flipping pro works is important as well and this depends on the local real estate market in large part, the house flip professional can make a higher return of their invested dollars in shorter period of time if he flips the house quickly. This is in contrast to real estate investing where the investor has to wait for long periods before the property can be completed and sold to make a profit.. 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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