Is Flipping Real Estate Best For Brand New Investors?
There are a number of ways to invest in real estate. Some of the most popular real estate investing strategies include rehabbing and flipping houses, wholesaling and building a portfolio of rentals. However, what’s right for you really depends on your personal skill set, passions, and mix of time, money, effort and knowledge. Rehabbing houses for a living is fun, rewarding in many ways and can be highly profitable, but many might not consider it the easiest form of real estate investment. In contrast, those with time on their hands but little funds or appetite for risk, and that need cash fast and lots of it might try their hand at wholesaling real estate to start with instead. Many consider wholesaling the fast track to larger sums of money that can be started with no money or credit and in just a few hours a week. Those that are reasonably financially stable already and either have a job they are happy at or are retired already but want better returns on putting their money to work and don’t really want the hands on hassle might find turnkey rental properties the ideal solution. This can provide all of the best benefits of direct investment in real estate and building a rental portfolio without having to worry about rehabbing, personally dealing with tenants or day to day property management. In other words don’t just buy into what one real estate investing ‘guru’ tries to tell you is the ‘only’ way, it’s about finding a personal match that works for you.
Flipping houses is hot right now, especially with so many foreclosures and new construction pumping up the prices of nicer looking homes, but is it really the best move for you as a newer real estate investor.