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Real Estate Investment Research Paper

704 Words3 Pages

Real Estate Investing: Is House Flipping A Profitable Investment Strategy?
By Simon Volkov
May 27, 2008
Real estate investing in house flipping is considerably different in today's market. Not so long ago, house flipping was one of the more profitable real estate endeavors. Today, it takes a savvy investor to flip a house and make a quick profit.

In this type of real estate investing, distressed properties in need of repair are purchased under market value. Chances are you have seen television shows featuring real estate investors who purchase fixer-upper homes. They make repairs and renovations, than sell the house within a short period of time for a large profit. Although it isn't quite as easy as the shows portray, house flipping can be a rewarding and profitable investment strategy.

With the massive influx of foreclosures and bank owned properties, real estate investors have an …show more content…

They can either personally make the repairs or hire subcontractors to perform the work. In addition to repairs, these houses oftentimes require renovations such as new countertops, flooring, household appliances and landscaping. Many who are new to the real estate investing game choose to take care of the repairs on their own; as opposed to hiring others to do the work for them.

A primary benefit of house flipping is repairs and renovations can be done during evening and weekend hours. This can be a downside for newbie investors as it takes away from their family time or personal activities. The point of house flipping is to sell the house for profit in a short period of time. Those who procrastinate about making repairs quickly end up losing their profits. After all, unless you pay cash for the house you will have to make mortgage payments while you are repairing the house. The longer it takes to sell the house, the less profit you

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