There are a wide variety of ways to invest in real estate; one can make money in any of these options, one can also lose their money. To be successful in real estate investing, it’s critical that you identify what skills you have and your tolerance for risk. Then choose a type of investment that works for you and repeat that model.
Investors can make great profits by both flipping properties as well as holding them as rentals. The difference really boils down to a few considerations.
First, what kind of income are you seeking? Active or Passive? Actively buying, fixing and flipping properties is quick cash that requires careful timing and effort. Rental properties, on the other hand, offer passive long-term income which accumulates over time. Additionally, the property value increases during this time. The downside is that one must invest time in property maintenance and tenant
management. Please remember, we have Scarlett Properties Property Management Division to assist you with all these needs on the rental side of investing.
The second concern is your risk. Flipping property is not traditional investing where one buys and
holds an investment. Flipping is really speculation. When buying a flipper, one must carefully
gauge the cost of refurbishment, remodeling and the cost of the holding time into the price
valuation, then carefully market the home and realize the profit. Any number of variances can
go wrong which could cause the value to drop and profits to reduce or even disappear, such as
a delay in remodeling or a slow real estate market.
Both types of investments can bring nice profits. Determining what’s best for you and your
talents is important in choosing the best option for your financial goals