Home improvement TV shows have made house-flipping look like a dream payday. You buy a house that needs repairs at a low cost. You make the repairs. Then, you sell the home to an eager buyer for a huge profit.
Flipping homes can be a great way to build your wealth through real estate investment. But, in reality, there are several considerations to keep in mind before you dive headfirst into house-flipping.
Here’s a quick guide to house-flipping that answers some of the most important questions you may face as a new investor.
Investing in real estate can be a dynamic part of building wealth. But not all forms of real estate investment work the same or are the right fit for every investor.
Active forms of real estate investment, such as buying and flipping homes and owning a rental property, can be particularly intimidating to a first-time real estate investor. Although active investments can give a great return on your investment, they also require more risk, effort, and knowledge to succeed.
That’s where passive real estate investment comes into play. Ideal for new investors, passively investing in real estate allows you to build a portfolio without shouldering the responsibility solo.