Flipping vs. Holding A Property
What is the difference between flipping vs. holding a property? Which one is more beneficial?
Need to know the answer to these questions? Watch this short video and learn from Lou different strategies on becoming a successful Street Smart Real Estate Investor.
For more valuable information click on this link and watch the complete episode: https://youtu.be/9XsFoXsOtpg – “The Flipping Real Estate Marketing is Crazy!”
If you are JUST getting started in real estate investing, you NEED to attend my ONE-DAY virtual training. I teach it LIVE over ZOOM, and it’s only $1 (yes, one dollar) for SIX HOURS of solid how-to training! https://www.wealthbuilderworkshop.online
If you’re ready for a more in-depth experience, then you owe it to yourself to investigate my THREE- DAY Millionaire Jumpstart Event. I host it four times a year in various locations, and you can attend LIVE and in person. I’m your coach all three days. Find out more at https://millionairejumpstart.com/
You’ll discover how to start investing in real estate (or do it easier and more profitably) at either Wealth Builder Workshop or Millionaire Jumpstart.
Here is an overview of my proven and practical approach to investing in real estate.
* Money Making Secret #1: Getting Motivated Sellers to Call You! No more calling unmotivated sellers and getting rejected more times than a geek for the high school prom!
I’ll show you how for over 28 years, I’ve been able to get deals brought to me and motivated sellers hunting me down to give me their house.
* Money Making Secret #2: The Art of Structuring Deals! I’ve been doing this for 40 years and I love to share how I get sellers to give me the house, a check, and even a jet ski or two.
* Money Making Secret #3: Negotiating Secrets Revealed! I love to negotiate, just ask Matt, one of my hand-picked coaches. We recently went to an estate sale and he witnessed me structuring a deal to buy the house and contents right there on the spot.
* Money Making Secret #4: Trusts Simplified! A little confused on this entire Trust thing? Why to do it? How to do “Subject-To” safely? I’m going to show you my new fundamentals of Trusts training that will simplify the concept of Trusts, so a 9-year-old child can understand it.
* Money Making Secret #5: Develop a Plan for Success in Real Estate. The wealthiest man ever to walk the earth left clues for us on how he amassed his great wealth and kept it.
How to Help People While Helping Yourself – Become a Certified Affordable Housing Provider™
Create Your 10 Million Dollar Retirement Plan – specific formula revealed
Learn Hidden Profits Available in ANY Deal – worth thousand$
How to Take Over the Seller’s Loan with NO Money
How to Have the Seller PAY YOU to Buy Their Home – no kidding!
Buying Without Bank Loans – over forty years and never one bank loan!!
Easy Ways to LEGALLY Raise Big Money for Your Deals
Renovations – Quick Ways to Safely Make Huge Cash Now
Money-Making Management Secrets from a 40 year veteran who manages over 150 now
Accelerating Your Cash Flow – Add built-in “Profit Centers” – extra hundred$ per month
Case Studies: Secrets of How They Were Found, Negotiated and Sold
How to Protect Your Deal from Someone Else Stealing it
Legally Pay ZERO Taxes on Your Real Estate Portfolio – simple structure worth thousands
Having Tenants Leave Your Property in Better Condition than When You Gave It to Them
Why Land and Personal Property Trusts are the Best Privacy and Asset Protection
Benefits of Trusts You Cannot Get With ANY Other Entity
The Due-on-Sale Clause – What it is and How to Avoid it Legally And MUCH More
Need help deciding which power-packed “one-of-a-kind” training on making money in real estate investing is best for you!
Call 1-800-578-8580 or visit us online at https://www.streetsmartinvestor.com
Listen to our Podcast:
https://streetsmart.mypodcastworld.com/11250/flipping-vs-holding-a-property-street-smart-investora
Street Smart Real Estate Investing With Lou Brown
Scott Paton:
We have a question from Erica, is it better to flip or hold in today’s market? And before you answer that question, we had someone else ask just before we have about 10 minutes before her. I’m not sure what a flip is. So can you explain flipping versus holding?
Lou Brown:
That’s a great question. What’s a flip? Well, that’s where you are putting a property under contract. You may close on it, but you’re going to flip that sale quickly to a new buyer and your whole game. Your whole plan is simply to make that difference between what you put it under contract for and what you sell it to a new buyer. Well, generally that means that you have left some equity, sometimes a very significant amount of equity on the table for the new buyer to enjoy. That’s why whoever bought mine, flipped it. And then the next person flipped it out to their buyer because there was enough equity in that deal, in that neighborhood for that particular buyer to buy. And I guess their numbers made sense to them, which is great. But that’s what a flip is.
It’s the difference between what you put it under contract for and what you sell it for traditionally that there’s enough equity above that for them to make money as well. Is this a good time to flip or is this time a good time to hold? Well, I’m always looking at every deal with that in mind, because it’s a danger that people actually tell the deal what it is instead of letting the deal tell you what it is. The customer, my client tells them what it is. Well, don’t do that. Don’t tell the deal what it is, let the deal tell you what it is. And in my world, that means that a lot of properties that could be flipped, could also be held and holding to me is the keys to the kingdom.
Now that house that I sold for $150,000, well, that’s not the whole story. Over the years, we collected $900 a month or whatever the number was for years and years and years and years on that property. And we only paid, I think, $60,000 for it. And then we held it for years. We received income for years, and then we flipped it for 150,000, but I would have been just as happy if somebody had come in and said, “I want to buy this property on your Path To Home Ownership Plan. And will you be the bank for me?” because that’s what we do for our clients. I would have been just as happy with that as with the flip.
Scott Paton:
So what you’re really saying is, is that you need to be flexible and adjust to the situations, whether the market is going up, the market is going down, whether you have this, you know, someone wants to buy it off of you in a way that you hadn’t really originally planned because you’d been planning on that 900 for many, many years and then continued on would have been great. So I think that’s a really important part of it.
Lou Brown:
Anytime you can hold, you’re better off.
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