Real estate trading ventures into the adventurous realm of real estate investment. Unlike the steadfast buy-and-hold strategy or the long-term focus of buy-and-rent landlords, real estate traders constitute a distinct breed. Their modus operandi involves purchasing properties with the explicit aim of a brief ownership period, typically spanning three to four months, with the ultimate goal of selling for a profit. This practice, often termed property flipping, hinges on acquiring undervalued assets or capitalizing on sizzling market trends. It's characterized by a condensed timeline where both capital and effort remain invested for a shorter duration. Despite the brevity, market conditions can yield substantial returns within this accelerated timeframe.
As property flippers, we typically avoid investing money in house improvements. We focus on properties with inherent value that can generate profit without any alterations. This approach to flipping involves short-term cash investment. To maximize potential returns, having immediate cash available is crucial, as conventional financing isn't usually viable for this type of transaction.
There's another group of property flippers out there. These investors thrive by purchasing reasonably priced properties and then boosting their value through renovations. It's a more extended investment plan, considering the scope of the improvements. However, its drawback lies in the time it consumes, often restricting investors to handling only one or two properties simultaneously. That's why we steer clear of high-maintenance properties, preferring those undervalued gems. If you want to learn more, reach out to us via live chat for additional information.