Real Estate Investment Basics
Real estate investment includes the buying, holding, management, occupancy, repair, disposition and improvement of real estate property for personal gain. As part of an overall real estate investment plan, development of real estate as a part of a broader real estate investment plan is normally regarded as a sub-specialty of real estate investment known as real estate flipping. The activity of flipping real estate property has been around since the mid 1990’s when flipping started to become a popular real estate investment plan due to the popularity and perceived benefits of this activity.
Real estate investors are known to buy an asset (usually a single family home) at a low price and turn it around and sell it for a higher profit within a short period of time usually four to five years. The flip, or real estate flipper, buys a low-priced asset, keeps it for a short time, makes repairs or improvements, then resells the property at a higher price. Flipping is also referred to as “flipping houses” or “asset flipping.” There are different methods used to perform this activity but all have the same purpose which is to make a profit by selling the asset while leaving with the highest and most profitable physical value of the asset.
Some common methods used include carrying on remodeling or repairing the property to improve its appearance, using the vacant land to construct houses, or adding facilities such as swimming pools, hospitals, clinics, shopping malls or hotels. Another common method of real estate investment is through “asset flipping.” This is one of the simplest and quickest types of real estate investment. Here, you keep properties that you construct, build them up to the standards of the neighborhood or county requires, then sell them for a profit after the construction period. These investments require a lot of research and work but can be very lucrative.