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523 Main Street Bradley Beach, NJ 07720

(732) 455-5252

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Is Flipping Houses for You?

Is Flipping Houses for You?

There are a wide variety of ways to invest in real estate; To be successful in real estate
investing, it’s critical that you identify what skills you have and your tolerance for risk. Flipping
homes is one of these ways, but not every investor is prepared for what house flipping
involves. Understanding the model can help you determine if this is the right investment
strategy for you.

Investors can make great profits by both flipping properties. The first question is 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.

The second consideration is a risk. Flipping is really speculation. When buying a flipper, one
must 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 occur 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. Having ready cash to
cover the unexpected is critical to success.

Flipping houses is one way to invest in real estate. For those who are able to plan for the
unexpected, this quick turn-around model might be a great tool for wealth building.
Understanding your market, resources and risk tolerance is the first step in deciding if flipping
is right for you.

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Chuck

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