1. What's wrong with fixing and flipping
properties
2. When times are tough -- here is something
that really works
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What's wrong with fixing and flipping
properties
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Yesterday I told you about the real estate
strategies involving landlording and I want
to focus a bit on fix and flip.
Fix and flip of course is when you buy a
propery, fix it up and sell it.
If you go around the country and visit
real estate investors as I have done, you
get pretty bummed out about fix and
flip.
Farhad has been buying houses and rehabbing
them and he is a perfect example.
"Around here, you can't make more than
a few thousand dollars fixing and flipping,"
he says.
"I've wholesaled, I've bought from wholesalers
but it's frustrating. Five or six years ago
it was a goldmine. Now, it's nothing like that."
Farhad has done real estate for over 20 years
and he has yet to learn that the strategies
that worked before aren't working today.
The trouble is that profit margins are too
narrow and holding onto properties while
you fix them up is too risky.
Fixing and flipping properties is a poor
way to try to make it in real estate today
but there are excellent ways to do
that and much easier ways too.
