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Property investing can be viewed as a difficult issue, but that is only because there are so many decisions. When you invest, you have an almost infinite array of manners in which to earn money. That, however, means that you must have the ability to choose wisely. You must decide the extent to which you will educate yourself about each facet of real estate investing, who you want on your team, where to find properties, whether a property is the right one for you, and so on. One decision you will inevitably face is how you will use a property after you've purchased it. You may not be the type of real estate investor who wants to purchase a property and hold on to it for an extended period of time. You may not want to have to deal with renters and property managers or the upkeep of a piece of real estate. If these activities don't appeal to you in the slightest, your other option is flipping. Flipping a property is the practice of selling it immediately after you purchase, perhaps even at the same closing. At the very latest, flippers generally start the selling process the day of the sale. Some even start the process prior to buying the property, although this is very risky business. However one chooses to approach the practice, flipping inevitably involves hurrying to the auction block, since a vacant property always represents a liability. However, when you hold a property, you are afforded the opportunity to raise that property's worth. If you manage to find a really great deal, the price you paid for it will probably represent only a drop in the bucket compared to what you stand to make from it. And when you do decide to go ahead and sell it, you will be able to do so at your convenience and get a higher price than you would have by flipping. This holds true particularly if your property is a multi-family dwelling such as an apartment high rise. If it is the right property in the right area, and you maintain it, chances are that occupancy is going to stay high. With a property like that, your earnings tend to increase exponentially. With good management, that is almost assured. Speaking of management, you will need to decide whether you will perform that function yourself or hire a management company to do it for you. If you are the owner of a particularly large property, or if you own many properties, you will probably need to hire a manager. Ken McElroy, author of The ABCs of Real Estate Investing, strongly suggests that you hire a real estate management company so that your time and effort will be put to better use elsewhere. Those are the types of things you will have to keep in mind as a property owner. Ultimately, however, whether you decide to flip a property or hold it depends chiefly on what you'd rather spend your time doing. Maybe you thrive on the fast-paced workday that flipping entails. Maybe this rush feels exciting to you. If this is the case, you should educate yourself on the right way to flip properties (which is to wait until you own a property to arrange a sale and don't approach buyers at the very closing at which you purchased a property). However, if the idea of caring for a property seems like it would appeal to you, then buying and holding may be the way to go. Depending on your skill set, you personally may be able to find it more profitable to work in one way as opposed to the other. It's completely your decision.
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Alex Anderson Is A MN Investment Property Specialist. Searching The MN MLS Real Estate Listings For Money-Making Investment Properties. Get A Free Copy Of "The Investors' Rental Guide" At www.GreatInvestmentProperty.com
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