Home, Property, and Real Estate

Real Estate has always been a tried and true type of investment that can offer both short and long-term gains, is relatively safe and creates wealth for millions of investors year after year. But, before you purchase a property you must determine if you want to flip the property or rent it out. We all know how the real estate market fluctuates, sometimes we are in a buyer’s market and sometimes we are in a seller’s market. What you do with your investment may depend on what is happening in the market and how much you pay for an investment property.

Knowing When to Flip a Property
Buying a property and selling it fast, a.k.a. “flipping”, can provide huge profits if done right. The key factors to look at are the purchase price, the condition and location of the property and knowing how to “comp” or determine how much comparable properties are selling for (and how fast!).

Generally speaking, if you plan to pay a lot of money for a single unit investment property, your best bet is to turn it around quickly and flip it. Expensive investment property comes with big property tax payments and big mortgages, which usually will rule out any cash flow for renting. Locating renters for higher priced homes can be difficult, and if they miss a rent payment for one or several months your cash flow may not only totally disappear, but you may take a loss.

If you can buy a property at wholesale prices that only requires cosmetic changes, you should be able to flip it for a nice easy profit. Look out for property with major structural problems, a.k.a. a “money pit”, especially if the price was priced high to begin with. Before you buy property that needs any major repair be sure to assess not only your financial resources, but also the resources of your work force. Do you already have relationships with different types of contractors and other skilled labor professionals? Just be sure to look at the whole picture before you decide to flip a property.

How to Know When to Rent a Property
If you’re looking for a nice monthly cash flow and building equality over time, you may want to rent your investment property. Renting is generally a much safer type of real estate investing. The key factors to look at are the price of the home, if the area where you are investing has growth potential, and the condition of the property.

Lower-priced investment property will translate into a lower monthly payment, lower property taxes and lower priced insurance. You can buy several lower priced investments and spread out your risk of both tenants that don’t pay and buying a property that turns out to be a money pit. Remember, when you’re renting out a property you are building equity by using your tenant’s rent money.

You also want to determine if the area where you are investing in is growing. Do you notice a lot of new construction in the area? Do you see new business moving in? Is the location near an urban area, with plans for a new infrastructure? Properties located in growth areas almost always net the largest gains over time.

When you invest in a growth area you can make money flipping a house, but you may be able to make considerably more money if you rent it out, build equity, and sell it for a much higher price at the optimum time. You may not make as much cash-flow in a growth area, but the property value may go up so fast that cash-flow doesn’t matter.

It’s Not Just About the Bottom Line
Deciding whether to flip or rent out a property is not easy, assess the market, do the math, and then consider your own interests and abilities. The perfect flip may not be for you if you have no construction or renovation experience, and becoming a landlord may just not be for you period. In the end, it’s not just about what’s best for your pocketbook; it’s what’s best for you.

Video related to property and creating wealth

Carly Crutchfield takes you into the world of property development in this montage of clips that gives you some quick tools and tips that are priceless, unforgetable and all about creating wealth and achieving the life you want.

Frequently question about property and creating wealth

Is it true that over the centuries Real Estate created more wealth than any other industry?
“The major fortunes in America have been made in land.”

- John D. Rockefeller

“Buy real estate in areas where the path exists…and buy more real estate where there is no path, but you can create your own.”

- David Waronker

“A man complained that [on] his way home to dinner he had every day to pass through that long field of his neighbor’s. I advised him to buy it, and it would never seem long again.”

- Ralph Waldo Emerson

“My own recipe for world peace is a bit of land for everyone.”

- Gladys Taber

“There have been few things in my life which have had a more genial effect on my mind than the possession of a piece of land.”

- Harriet Martineau

“The small landholders are the most precious part of a state.”

- Thomas Jefferson

“Land monopoly is not only monopoly, but it is by far the greatest of monopolies; it is a perpetual monopoly, and it is the mother of all other forms of monopoly.”

- Winston Churchill

“I have always liked real estate; farm land, pasture land, timber land and city property. I have had experience with all of them. I guess I just naturally like ‘the good Earth,’ the foundation of all our wealth.”

- Jesse H. Jones

“It is a comfortable feeling to know that you stand on your own ground. Land is about the only thing that can’t fly away.”

- Anthony Trollope

“Landlords grow rich in their sleep without working, risking or economising.”

- John Stuart Mill

“Buying real estate is not only the best way, the quickest way, but the only way to become wealthy.”

- Marshall Field

“Land increases more rapidly in value at the centers and about the circumference of cities.”

- William E. Harmon

“The best investment on earth is earth.”

- Louis Glickman

“Buy on the fringe and wait. Buy land near a growing city! Buy real estate when other people want to sell. Hold what you buy!”

- John Jacob Astor

“Find out where the people are going and buy the land before they get there.”

- Will Rogers

“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”

- Theodore Roosevelt

“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”

- Andrew Carnegie

“The West is the best, get here and we’ll do the rest.”

- James Douglas Morrison

“I advise women to invest in real estate. It is the collateral to be preferred above all others, and the safest means of investing money.”

- Hetty Green

“No investment on earth is so safe, so sure, so certain to enrich its owners as undeveloped realty. I always advise my friends to place their savings in realty near a growing city. There is no such savings bank anywhere.”

- Grover Cleveland

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

- Franklin Delano Roosevelt

“Real estate is the best investment for small savings. More money is made from the rise in real estate values than from all other causes combined.”

- William Jennings Bryan

“Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security.”

- Russell Sage

“Don’t wait to buy land, buy land and wait.”

“Buy land. They ain’t making any more of the stuff.”

- Will Rogers

“I would give a thousand furlongs of sea for an acre of barren ground.”

- William Shakespeare

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So is this true??

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Kevin Kiene -
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