Fix and Flip, or Fix and Hold?
Flip vs Rent: Risk And Reward
Many real estate investors (especially those just starting with limited capital) find it tough to get started in the real estate business. What to offer on a property is not easy without a powerful real estate offering system. Renting the property out provides a steady cash flow, and you can always sell the property whenever you are ready. However, this is not ideal for every situation. If you rely solely on the rental payments to pay for your investment, you could be waiting for quite some time. And if the market in your area begins to slip, you could easily lose money on the investment before the rental fees have a chance to pay it off. You also have to think about the repair costs, and whether your decision is enough to pay it and the property off while still providing a positive cash flow. Try doing this for several properties in various geographic locations, and you get a picture of just how cumbersome this can become.
All real estate investors need a powerful real estate offering system. You need tools that will determine the profitability of a potential rental property before you even begin working on the deal. You need to determine how much it will cost to purchase and flip the property. You can need to determine whether it would be best to rent or sell the home, and the ideal rate to charge. Finally, you will be able to determine how long it will take for the rental fees to pay off the property and what kind of cash flow you can expect. You need a state-of-the-art technology to determine the best rental deals based on the current market's trends and prices. You need to be able to approach each rental deal with confidence, knowing that the best prices and rates have already been determined. And best of all, you will have more time to invest in other properties, increasing your cash flow anytime when your system returns a great rental deal.
After years of doing these calculations by hand, my partner and I have developed an online real estate offering system to make our lives much easier. We can now crank out offers and determine the exit strategy in seconds.
To Your Success, Tom & Svein
About the Author
Go to http://www.What2Offer.com to learn how to crank out real estate offers in seconds. Instantly know if a deal is for you, whether you're a wholesaler, rehabber, keeper, or assigner. Why waste time making iffy offers on properties using stone-age techniques, whereby now you can use a simple 21st-century Web-based program?
Easily make accurate RE offers in seconds-no kidding. Easily determine your exit strategy (flip, rent, or assign) before you make your offer. Easily determine what interest rate you'll need on your cash flow (rental) deals. Easily determine what the detailed repair costs will be-for your geographic area. Easily determine your cash-on-cash return.
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