Search:

Home | Family Finance | Investing


Real Estate Investors - Should You Buy And Hold?

By: Alexandria Anderson

Property investing can be seen as a complicated subject, however that's just since there are so many decisions. When you invest, you have a virtually unlimited infinite number of ways to make money. That, however, entails being able to choose wisely. You have to choose the extent to which you will educate yourself about each element of real estate investing, whom to add to your team, where to find properties, whether a particular property is the right one for you—and on and on.

A key decision you will inevitably face is what you'll do with a piece of property once you've purchased it. You might not be the kind of investor who wants to buy a piece of property and keep it in your possession it for a long time. Maybe you don't want to have to grapple with property managers and tenants or the maintenance of a piece of property. If these activities don't appeal to you in the slightest, the other option at your disposal is flipping.

Flipping a piece of property is selling it immediately after you purchase, often at the same closing. At the very latest, flippers generally start setting up a sale on a property the day that he or she buys. Some flipperswill even start the process prior to purchasing the property, though this is very risky business. However one chooses to approach the practice, flipping always entails a mad rush to the auction block, since a vacant piece of property always represents a liability.

However, if you hold a piece of property, you are afforded the opportunity to raise that property's value. If you manage to find a great deal, the amount you've paid for the property will likely be a drop in the bucket compared to what you stand to make off it. And when you do decide to go ahead and sell it, you will be able to do so at your leisure and get a higher price than you would have by flipping.

This is true especially if your piece of property is a multi-family dwelling like a high-rise apartment. If it is a good property in a good area, and you maintain it, chances are that occupancy is going to stay high. With a piece of property like that, your profit tends to grow exponentially. With good management, that is almost guaranteed.

On the topic of property management, you will need to choose whether you will perform that function yourself or hire a company to do that for you. If you are the owner of an especially sizable piece of property, or if you have many pieces of property, you will probably have to employ a property manager. Ken McElroy, author of “The ABCs of Real Estate Investing,” strongly suggests that you employ a property management company so that your time and effort will be used more efficiently elsewhere.

These are the sorts of things you will need to keep in mind if you hold a property.

Ultimately, however, whether you decide to flip a piece of property or hold it hinges chiefly on what you'd rather spend your time doing. Perhaps you thrive on the fast paced workday that flipping entails. Maybe this rush feels like an adventure to you. If this is the case, you ought to educate yourself on the proper way to flip properties (i.e., wait till you own a piece of property to sell it and don't approach buyers at the very closing where you obtained a piece of property).

However, if the idea of nurturing a piece of real estate seems appealing to you, then purchasing and holding might be right for you. Depending on your particular skill set, you may make more money working one way as opposed to another. It's totally up to you.

Article Source: http://www.articlebankonline.com

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

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Investing Articles Via RSS!
Golf Gift Certificates from PurePoint Golf




Additional Articles From - Home | Family Finance | Investing
Sign Up for a free account or learn more.
Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds
New Stuff
Sitemap
About Us
Site Blog
Forum
Link to Us
Contact Us
Privacy Policy
Terms of Service
Chose Your Exact Flight & Time!

Supplement Advisor


Pro Teeth Whitening


Lose Weight


Anti-Aging Skin Care


Fix Golf Slice


 Get Camilo Villegas' Golf Secret

Simple Golf Swing


Cheap Airline Tickets


Blogging To The Bank


Plan Your own Wedding


500 Love making Tips


Approaching Women Tips


Catch A Cheating Spouse

==============

Bird-Watching-101

Blogging 101

Copywriting 101

Kitesurfing -101

Life-Coach 101

Living-Wills 101

Maui-Vacations-101

Stress Managemeny

Subliminals 101

Reiki 101

Friends


U Publish - Free Article Publishing - Article submission and content you can use for free at uPublish.info

Powered by Article Dashboard