CW Blogcast 56 - The problem with flipping...
Description
If you’ve been a follower of Jason Hartman and Platinum Properties Investor Network's style of investing for any length of time, you know we don’t believe flipping properties is the best approach for creating wealth in real estate.
There are several reasons we think this way, but let’s consider a single one - taxes. Part of any investor’s success is the extent to which he manages to avoid paying taxes. Let’s make it clear we’re not encouraging illegal activity. What we do suggest is you take advantage of each and every method of legal avoidance the IRS presents you with. That’s why we were such fans of Go Zone investing.
And that’s why we don’t like flipping.
Unless you’ve been living under a rock on the far side of the moon, you’ve probably heard about flipping. This is where you find an under-priced house that needs a little renovation. You buy it, do the work, and immediately re-sell it for a little (or maybe a lot more) than what you paid.
The problem with flipping is you create TAXABLE events every time you sell. This takes money out of your profit margin. Yes, you could make some money but we don’t believe you’ll become wealthy this way. For true wealth generated by the best form of real estate investing ever, check out The Complete Solution for Real Estate Investors at www.JasonHartman.com.
While everyone’s attention has been focused on the Millennials and their housing choices, it turns out that it may be those famous Baby Boomers who wield more influence in today’s housing market.
According to new article from the Bryan Ellis Investing Letter, research from Merrill Lynch reveals...
Published 06/30/15
The Millennials have taken a lot of heat lately, criticized for poor work ethics, overdependence on technology and general lack of interest in notching up the traditional milestones of “adult” life. Now, as home sales continue to drop, market watchers are looking once again to the attitudes and...
Published 06/23/15