Why Flipping Houses is a Bad Ide

I'm sure you have heard all the stories about that one couple that buys a little run down house, spends a month or two together renovating it, turns around sells it, and then go on a Carribean cruise together. Sounds romantic dosen't it? Well, the reality factor is that flipping houses really isn't all that fun for most people and it's really not that great of way to make a living. It is just not the proper path to lasting wealth and financial freedom. Allow me to explain...

What happens when you are flipping houses as a business? You flip the home and then sell it and make a profit...hopefully. So, why then do I think it is a bad business idea? It's simple. Contrast flipping houses with owning rental property and the answer is very clear. If you spend all of that time building a large portfolio of rental properties and not flipping a house you can become far more rich.

The idea is that a rental property can accumulate wealth for you over a long period of time and consistently. Flipping houses and selling them cannot. You can buy a property just like you would if you were going to flip but instead of immediatly selling it you could instead rent it out. That original loan or amount you invested will eventually be paid off by the renters. After holding onto the property for many years you can also sell it. Instead of the flipping houses strategy where you make the difference this time you will make far more money on the sell. Not only from having your original investment paid for by the renters but because of the increase in value that normally occurs in the real estate market.

This is the exact strategy I teach on my website. Flipping houses is just not a good business practice and is only going to make you a quick buck. If you want lasting wealth and true riches, then learn how to properly tackle the real estate business.