Moty_Vatyd
New member
I hear and see a lot of advertisements and "courses" on getting rich in real estate via flipping properties. It's portrayed as a quick and easy way to get rich. It's really not. I've been involved in real estate for most of my life and many of the flippers I know make good money in the up market and lose most if not all of it in the down cycle. It's because they treat it like a job and their income is derived from the profit on each property so they try to flip as many as possible which means they are heavily leveraged. They also adjust their personal spending levels to match their income from the flips. Then when the market turns and their stuck holding a number of properties they lose everything including their lifestyle.
If, instead, they would just keep a few properties as long term investments (rentals) then they would have a base of income on which to build over time. It's a slower way of attaining wealth but is far more stable and, I personally believe, more successful in the long run. Any one can do it by saving money, buying a very modest property for their personal home, and then purchasing a small rental property. Then, work from there. Or, buying a multi unit property such as a duplex or 4 unit apartment building and using one of the units as their personal residence. This makes the loans easier to acquire. It's not as glamorous as "flipping" but in the long run works better.
If, instead, they would just keep a few properties as long term investments (rentals) then they would have a base of income on which to build over time. It's a slower way of attaining wealth but is far more stable and, I personally believe, more successful in the long run. Any one can do it by saving money, buying a very modest property for their personal home, and then purchasing a small rental property. Then, work from there. Or, buying a multi unit property such as a duplex or 4 unit apartment building and using one of the units as their personal residence. This makes the loans easier to acquire. It's not as glamorous as "flipping" but in the long run works better.