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Real Estate Vs House Flipping Research Paper

567 Words3 Pages

House Flipping vs Real Estate Investing Which One Can You Earn More Money?
By Bill Macy
Jul 17, 2012
Which is preferable: property flipping or real-estate investing?

To arrive at an answer, it may help to identify each term and put them in perspective.

Home flipping is the practice of acquiring a property then selling it at a profit in the least amount of time manageable. A house flipper tries to make the most money within a very short period of time, thus the word flipping.He/she does not hold onto it for the purposes of income. They want to hold the house, then sell in the shortest period of time.

Real estate investing is all about buying and holding real estate and at a later date selling the house for a longer term profit.

The real estate investor might buy the property with …show more content…

The main differentiator is house flippers want fast cash back while the real estate investor is more concerned with steady income.

A house flipper aims to buy at a below market rate. In doing so, it guarantees a quick profit from a quick sale.

Typically, the home is likely to be purchased at a price considerably less as compared to its selling price (within the cover anything from fifty to ninety percent lower than the market will bear).

Renovating a fixer upper is a popular way to house flip. The flipper buys a house and renovates it in a short time and then sells it.

Taking a beat home and renovating it is a time tested way to house flip because you can easily estimate fixup costs on the front end. It is usually possible to find industry experts in the certain renovations required and therefore the house will have a very good look in the end.

This enables the house flip pro to obtain an immediate market take and get a excellent price that is lucrative.

House flipping tends to be more hassle free than real estate investing especially where the flipper is just buying a house and selling it without doing any

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