When you tell someone that you’re going to invest in real estate they automatically think that you’re either going to buy-fix-sell, or you’re going to be a landlord. And, that’s probably what you think as well without any clear real estate strategy, or techniques.
Furthermore, real estate investors feel they must make a choice between landlording and flipping. (Flipping is buying and reselling as fast as you can.) As for me, H. Roger Neal™, I perceive landlording as the mashed potatoes and flipping as the gravy. Those who understand my landlord program do not understand why I flip. Likewise, those who understand my flipping programs don't understand why I bother to landlord.
It's easy to understand, really: They both make money. Landlording affords me the opportunity to generate monthly income on a steady basis and, once established, I need only maintain it. With landlording you will need down payment and repair money. Sometimes, when there is not seller financing, you will need the wherewithal to obtain bank financing.
Furthermore, you will need time to manage and make repairs. Once you have the properties bought, proper management and repair in place, this could work for you.
Flipping, on the other hand, allows me to buy and sell many properties without the cumbersome task of adding them to my portfolio. Furthermore, flipping needs to be done on a regular basis to keep cash sums coming in. Consequently, you’ll need to be constantly networking to keep the deals coming in.
Insofar as buying real estate to fix and sell, that is another totally different animal. You need to examine how much time you have to devote to the repairs required. If you plan on making repairs yourself while working a fulltime job, it could create many problems in both your home life and your ability to perform at your job the next day.
If you plan on hiring everything out, beware of serious employee theft issues. Vandalism after they’ve left the premises is another consideration. Hiring the right person to oversee the project is paramount. Also, I don’t recommend more than one major project at a time, regardless of working a job, or not.
Why would you flip real estate? You can flip just about anything! My policy is to not let any good deals get away. Whether you have money or not, whether you are too busy with a full time job or not, there is no excuse for not capitalizing on every good deal found. With some methods like H. Roger Neal™’s $1 DOWN, you can flip any real estate, anywhere, at any price.
Now you’re beginning to understand what you’re up against in the real estate investment world. So should you invest in real estate as a landlord, as an investor who fixes and sells, or just flip properties with H. Roger Neal™’s $1 DOWN program?
Well, that’s something for you to figure out after weighing all the options and variables. Just saying that you’ve decided to invest in real estate is certainly not enough in the thought process department to get started. Now you know there is a bit more to it!
Let your conscience be your guide as to what your time constraints and financial abilities are. Develop a real estate strategy and use techniques that make sense for you. Be realistic about the course you choose. Have fun, and go make a lot of money!
H. Roger Neal™
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