The obvious benefit and sought after benefit of speculating in real estate is profit. It’s an incredibly tangible benefit, especially when the profits come to you big and fast. Of course there are risks as well. Most businesses that offer high profits also come with high risk. However, money isn’t the only benefit associated with flipping real estate, although that’s certainly what most investors have in mind when they enter the business.
Let’s talk about profits for a moment. Profit is one reason most people get into this business. The days are long and the work is hard. It’s definitely not the kind of work that the average person takes on just to like getting their hands dirty. It’s real work that leaves you feeling tired at the end of the day. However, when all the work is done, you’ll find that the profits from a successful flip are well worth the effort you put into the process.
The good news is that savvy investors can still manage to make money, even if things may not go exactly as planned. This is another benefit of flipping real estate. If the flip doesn’t work out, there is always the option of leasing to own the property or renting the property out. These situations are much less profitable than outright flipping, but it prevents the financial collapse that is often the risk of a flip going wrong. The fact that there are options available is that you won’t necessarily be ruined at the end of a bad flip, which is definitely a benefit. There aren’t many types of investments that give you the option to save yourself like real estate does.
One of the intangible benefits of flipping real estate is that you are essentially working for yourself. In other words, you don’t have to punch a clock or worry about working overtime (at least you don’t have to). This can also be a bad thing if you lack the discipline needed to get the job done. However, most of us would consider this a huge plus when deciding whether to enter the wonderful and scary world of real estate investing.
Even though it is an industry that requires a lot of work to make attractive profits, at the end of the day there is some satisfaction in knowing that you are working for yourself and not to make someone else rich or to punch a clock. That satisfaction is something you should hold on to when that brand new toilet you just installed turns into a geyser. Of course, there are mistakes along the way, and what other job can keep you on your toes as much as this one?
Real estate investing, especially home flipping, can be one of the most frustrating types of investments a person can pursue. At the same time, it can be one of the most rewarding jobs mentally, spiritually and financially. You should keep this in mind when deciding if this is the right path for you.