Real Estate Flipping
Real estate flipping always gets popular when economical cycle is increasing. It usually coincides with the period of real estate prices boom. It looks very simple when real estate prices are raising and some people seeing those amazing investment opportunities just cannot sustain without doing anything.
However, real estate flipping is different from real estate investing while real estate flippers seek for fast short-term profit while property investing is long term process mostly based on yield. In simple words, flipping is more speculating than investing.
Some real estate flippers are not only buying and selling properties but also do some job on the bought property: minor repairs or full restoration. In any case, if real estate market turnarounds and starts to fall, real estate flippers are facing the reality of the losses. Especially such flippers are getting in a trouble if they are buying properties without own capital just using bank loans because bank may start to push them to payout the debt partially if the value of the real estate decreases.
Investment psychology gains momentum in contemporary business world
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