Flipping Properties: Short-Term is Long-Term

Flipping properties is considered a short-term form of real estate investing. That’s because flipping houses only lasts from a few days to a few months. Long-term methods of investing in real estate, on the other hand, usually take years. But did you know that this quick investing method can actually be used as a long-term business? Some investors have been in this business for decades… and they plan to stay here for a few more years.

The key to using flipping houses as a long-term business is knowing what method will fit your skills. There are basically two methods to “flip” a house. The first one is called wholesaling houses. In this method, you’ll buy a cheap house and sell it as is. The other is rehabbing homes, wherein the investor buys the house, carries out repairs and improvements on it, and then sells it for profits.

In wholesaling houses, the investor will simply serve as the bridge between the homeowner or the seller and the home buyer. When he finds a property for sale, he places it under contract. He then assigns that contract to an end-buyer, who could be another wholesaler, a landlord, or a private home buyer who is looking for a bargain house. This transaction usually lasts for a few weeks. If done repeatedly, it can be a very good source of income.

In rehabbing homes, the investor holds the property a little longer. He will need two three months to complete all the improvements on the property. This method of flipping properties usually pays more than the other method although it is also riskier. That’s because it involves more money. Investors who rehab properties usually have to borrow capital from hard money or private lenders to proceed with their deal. This is for people who have some knowledge in home repairs. You can hire a contractor to do all the work although it is required that you know what repairs actually raise the value of a property.

Once you’ve decided which methods suits you more, you can start flipping properties. You can opt to wholesale homes and earn a smaller check every week or two. Or, you can rehab homes and take a bigger check to the bank every couple of months. Continue learning about your business of choice until you’ve mastered it. And, for you to stay in it for years – and therefore use the short-term business as a long-term source of profit – it is important to remain hard working and level-headed. Take it one deal at a time. before you know it, you’re a decade in it, successful.

Ready to open a long-term cash flow through short-term real estate investing? Go to RehabList.com right now and realize your potential.

Article Source: http://www.articlesbase.com/real-estate-articles/flipping-properties-short-term-is-long-term-2781628.html

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