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A huge pile of material containing millions of books, videos, blogs and articles present on the internet compares investment strategies and the nature of businesses. Comparison of real estate business, especially flipping houses, with other investment strategies such as bonds, are one of the most important topics discussed in that material.
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DC Fawcett Training Is It Worth Flipping Houses For A Living?
BONDS • Less risk means less return • Inflation • Tax advantages • Leverage • Cash flow • Demand • Control over investment • Exit strategy
Less Risk Means less Return • Bonds are relatively safer then flipping houses. • Inflation profit on the investment in bonds. • You can get high profits on your investment. • Control your budget and negotiate your selling price to maximize your profit.
Inflation • Sudden increase in the prices of services and goods. • you need to pay more to buy the same service or products. • you might get less because inflation period is gone. • real estate is directly proportional to inflation.
Tax Advantages • Taxes are one of the biggest costs for anyone • numerous ways to combat taxes in real estate business • warehouses has some form of tax incentive associated with it.
Leverage • purchasing an investment property, one can pay in parts through leverage • ability to partner up with people for the investment. • ZERO leverage as they require 100 percent upfront investment.
Cash Flow • Bonds usually take longer to cash than flipping houses for a living. • properly and multiple properties are bought and sold with an interval of 15 days – 1 month • you can create a cash flow
Demand • small loan that companies get from investors • the demand for real estate will always increase. • Companies offer bonds only if they need investment • people are always looking for a house to live in; be it on rent or in their house.
Control over Investment • once invested, you don’t have any control over your investment • Flipping houses for a living let you have full control on your investment. • cheap and good to increase your chances of making a good profit • chance you can increase your profits by creating a budget
Exit strategy “You can even make petty cash With the whole sale” DC FAWCETT