Property investing can be seen as a difficult issue, but that is only because there are so many choices. As an investor, you have a virtually unlimited infinite array of ways to earn money. That, however, means that you must be able to to make choices. You have to choose how much you'll learn regarding each aspect of real estate investing, whom to add to your team of experts, where to seek properties, whether or not a particular property is the right one for you, and so on.
A key question you'll find yourself faced with is what you'll do with a property once you have purchased it. You may not be the type of investor who wants to purchase a property and keep it in your possession it for a long time. Maybe you don't want to have to deal with property managers and renters or the upkeep of a property. If these activities do not appeal to you in the slightest, the other option at your disposal is flipping.
Flipping a property is simply the practice of selling it immediately after you purchase, often at the same closing. At the latest, flippers generally start preparing to sell a property the day that he or she buys. Some will even start the process before they even own the property, which is risky business. However one chooses to approach the process, flipping always entails hurrying to the auction block, because a vacant property always represents a liability.
However, if you hold a property, you are afforded the chance to increase its value. If you get a great deal, the price you paid for it will probably be a tiny fraction of the amount you stand to make off it, and when you finally decide to sell it, you'll be able to do so at your leisure and get more than you would've by flipping.
This is true especially if the property is a multi-family residence like a high-rise apartment. If it is the right property in the right area, and you maintain it, chances are that occupancy is going to stay high. With a property like that, your earnings tend to grow exponentially. If you manage your property well, this is virtually certain.
On the topic of management, you'll have to choose whether you'll do that yourself or hire a company to do it for you. If you own an especially sizable property, or if you have many properties, you'll probably need to employ a manager. Ken McElroy, author of The ABCs of Real Estate Investing, suggests that you employ a property management company so your talents and your time will be put to better use elsewhere.
These are the kinds of things you'll need to keep in mind as a property owner.
In the end, however, whether you choose to flip a property or hold it depends mainly on what you'd rather spend your time doing. Perhaps you thrive on the fast-paced work that flipping represents. Perhaps the adrenaline rush feels like an adventure to you. If this is the case, you should educate yourself on the right way to flip properties (which is to wait till you actually own a property to sell it and not to approach buyers at the very closing where you purchased a property).
However, if the concept of nurturing a property sounds appealing to you, then purchasing and holding a property might be the way to go. Depending on your particular skill set, you personally may be able to find it more profitable to work one way as opposed to the other. It is completely your decision.
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