Pros And Cons Of Real Estate Flipping

What are the advantages of buying property for resale?
One of the reasons that people get into flipping, one of the things is so fantastic about it, is that you are able to build a second revenue stream for yourself, which means you can do this part time - I was on a soap opera the whole time and I was flipping properties, so you can do it as a secondary income. And not only are you are able to then make a profit by buying the house, fixing it up then selling it, you will be able to take that money and roll it into the next one and do the next and the same thing. Then you can roll that money into the next so that you're literally building your real estate fortune. That's one advantage. The other advantage is the tax benefits of working in real estate. For example, buying a house, living in it for two years, fixing it up and then selling it. After two years, you walk away with 250 or 500,000 dollars tax free. There is no other investment in the world where you can do that.

What are the financial dangers of buying property for resale?
What's the one thing I should consider before flipping property?
The one thing is so important to know about flipping is that you make your money in flipping a property before you buy the property. That means, when you go to actually purchase that property you need to know exactly how much you're going to make before you even buy it, or else walk away.

What should every buyer be aware of before getting started in real estate flipping?
Probably one of the most important things that a buyer needs to know when they're buying any house, especially one that they're going to be working on and fixing up, is what their estimated costs are going to be. They also need to know where the market's headed. If the market is going down ten percent every six months, you better know that the house you're buying is going to be worth ten percent less six months from now, and you need to calculate that in ahead of time.