How would you differentiate between a person who searches for and makes exit transactions to one who prefers profitable transactions? in what…
Original publication date on the United States Real Estate Forum on Facebook:
2018-11-18T19:42:04+0000
How would you differentiate between a person who searches for and makes exit transactions to one who prefers profitable transactions?
How are they different in character, skills, financial status, beliefs?
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I also do fast exit deals and also have great and high-performing assets that doesn't contradict each other?
Excellent discussion? ✅?
In my opinion only trading people usually yield more, ie wind, usually work in other fields and see an investment that yields something "probably true that will pay off for them in the future" in the immediate and monthly term the profit is nice, but not what will make the economic difference substantially, sometimes the monthly profit does not There are general and even losses (if there is suddenly an unexpected expense that takes a profit of many months) usually their financial situation is more stable and the monthly return whether you come or not, will not undermine or endanger them.
The flip flops are more looking for the quick and immediate profit, they have no patience to wait 10 years for the value to "probably go up" they want to see the whole deal with the profit from day one and count the money in the visible range (number of months) and as stated it is a job for everything Financially dependent on the sequence of transactions that will come and really need to "work on it"
This is of course a generalization, but it is my opinion based on investors I have known to date…
Flip transactions are an active investment - work for everything - locating, evaluating renovations, calculating quantities, accepting offers, marketing the property for sale, analyzing the market situation in the existing cycle, etc. Some people do this for a living or at the same time as their main livelihood. An income-producing asset can more be considered a passive investment, especially after it has stabilized. Includes some of the skills mentioned above but the evidence is more long-term - generating a fixed monthly income versus a larger one-time income. There are overlapping skills between the two types of investment but also many different ones.
If the goal is to increase capital in the short term, flip trades are suitable as an investment strategy. If you are looking for a current income and are willing to "lay down" the money in the property, then over time there will also be a capital gain. Also, the level of active involvement is completely different.
Why try to differentiate? Every investor has the will, fear, dream, vision, etc. You have to adapt yourself to it.
In accordance with financial planning and a plan that is suited to needs and desires
In general it is better to do both in a house that is not a cataclysm wedding
What is relevant to one's personal character? Everyone who suits him and who believes. Big Flipper is like a stock investor who buys and sells and is trying to hit a blow compared to the investor who goes for high yielding assets and is long term and time is working alongside him so the long term is gaining a lot of assets. Is it right to say that it is reckless in the face of it? Can you say that the yielder is more balanced compared to the risky / adventurous flipper? Don't think Teige is right for anyone.
Who is the stronger sprinter or martonist? 2 different types of running that just look the same - running, different sports practice. The same is true of real estate investments, but looks the same but different in nature.
You do not have to tag people according to their form of investment and as I wrote you will choose what is appropriate for long or short run. I believe in long but if you make a long decision you will drive long. Many long-thinking investors behave short and vice versa