The short-term capital gains that come from flipping a property result in higher immediate taxes compared to long-term investment. Fix and flip investors do not get the same tax breaks that buy and hold investors get. Therefore, to accurately predict your profits, you will need to better understand and factor the consequences of taxes in your projections and business plan.
Depends on what form of investment you plan on doing. You probably don’t need me to tell you that if you’re buying a house that you’ll need a lot of money for it. The more disposable income you have for your investment, the more options you have. Buying property is exceptionally costly, as is the work you’ll be doing to the property if your plan is to sell it as a fixer-upper or rent it out. Even if you just plan on living in it and paying your mortgage, that’s a long-term plan for paying off the investment. At a minimum for any of these, you’d need tens of thousands of dollars, and that can spiral into hundreds of thousands quickly.
The toughest aspect to investing today is finding buyers for the properties we buy. Very few investors still in the game today, have a large and reliable list of investor buyers who will buy up a property at the notification of an email.
So many investors have left investing all together, there is considerably more work involved in getting your deal sold. In the good ole’ days, your buyer list filled up as a result of your direct mail and networking efforts. That’s expensive.
VERY expensive these days. My realtor/broker just told me:
I spoke at my local REI club, and where as two years ago the average attendance was 200+ investors, is now down to a 20+ average per meeting . The credit crunch has everyone working harder, and getting fewer deals done.
So it’s plain to see… the old way of gathering a list of investor buyers that are anxious to buy a new deal off your hands is terribly slim.
Fortunately… technology is coming to the rescue. What I’m using now, is so crazy good, I’ll never go back to the old way of selling my residential properties ever again.
I’m a member of a new exclusive online real estate investing tool that, amongst it’s MANY functions, does my investor buyer list for me. All at the click of a button.
What this online tool does is use web 2.0 technology and social networking technology create instant communication that gets deals sold. The module in this system is called simply Matchmaking.
I post the details of my property, all the normal stuff like ARV, etc.
The system instantly finds other investors who have the parameters of the deal I posted in there profile like location, price range, ARV, estimated repairs, etc.
And then sends them and email FOR me, to their own accounts.
Qualified buyers, looking for deals EXACTLY like the one you have in your hot little hands. And it contacts them with everything they need to know, and your own contact info.
Look, don’t take my word for it. Click Here To Review The System For Absolutely Free
This online tool does so many other things well, but the real estate buyer finding function, the toughest part for my business, is worth it alone.
And come back here and leave a comment about it. This thing is amazing. It’s the future in investing, as far as I’m concerned.