The rage in real estate for the last 17 years has been flipping houses. Simple tenet of buy low, fix it up and sell high – House Flipping Business Dynamics. What if I told you there was more money to be made with less risk and very little work if you simply finance the deal? You would say I’m crazy. Well, I’m going to show mathematically that I know what I’m talking about.
Buy & Resale Real Estate
Buy and resale of real estate is commonly referred to as flipping houses. The buying and selling isn’t as big of a money maker as universally thought. The truth is that it is more like any other business operation. Learn about the best and worse deal I have performed an accounting, learn the overall average and decide for yourself.
I love the game of Monopoly. My sons enjoy playing it too. But we all have the same complaint about the game; it takes forever to accumulate all the wealth and ultimately win the game. Being a landlord means the same thing. It will take a long time to accumulate wealth. For those of you considering becoming a landlord, there are certain business dynamics and economics you should understand.
In your typical business operation, turning the inventory over as often as possible has several benefits. First, it generally reduces overall costs, secondly, it generates greater profits and third, by increasing the profitability, the company has a greater return on equity. OK, this seems all well and good, but does turning the inventory over in the house flipping business as fast as possible generate the same benefits?