Ever experienced a time when you wished you could go home already despite the fact that you just arrived at the office?
A lot of company workers are already burned out with their busy work schedules, and so few of them have the time to smell the roses. Most of their time is already spent making money for their families that they forget to spend time with their loved ones.
Thankfully, we now live in a world of technology - where continents are but a mouse click away. Because of computers and Web 2.0, the world has become a smaller place and new opportunities have opened in order for people to earn their income.
One of the most popular ways of making money online is through real estate investing. The industry jargon for buying and selling real estate is "flipping". There are actually two ways you can earn your income flipping real estate.
Some investors choose to purchase old properties at a lower price and then have it repaired and improved to increase the resale value. There are others who manage the project while others do the actual work. You can use any of the two methods but be aware that real estate investing is no easy task. Some people chose to study the basics of real estate through courses offered by different companies such as the Enlightened Wealth Institute.
Now, let's try to examine the two ways of flipping real estate. Where can real estate investors earn more money?
Some investors choose to repair the property themselves to save on labor costs, but does it really give them more profit? If you work in the same pace as professional home improvement contractors, then sure, you get more income by doing the work yourself. On the other hand, if you are a slow worker, then this could prevent you from flipping a dozen more real estate so it might be better to hire contractors to do the job and you can spend your extra time looking for new properties to flip.
As a business, it is obviously better to get someone to do the work, but you will also need to consider your financial situation. As has been said, you can save on labor costs by doing most of the work yourself. You can even live in the house while you're fixing it, and if you stay for more a minimum of two years, you won't have to pay for the capital gains. If you go this way, however, there are opportunity costs such as the fact that you are no longer liquid, which means that you might not have enough funds to invest in a new property. You may want to bring in other investors, but they can also cut into your profit.
By:Tammy Lynch Powell
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