2 Ways to Look at Real Estate These Days

by : Trisha Frauenhofer

The business of real estate these days is quite different that what it used to be. Of course there is still the buyer and the seller, but the way these two people look at real estate can be completely different.

No longer are the days of people buying a house because they simply want to move in and live there for the next ten years. Now, there is a big business fad called flipping, and many people are jumping on board.

Flipping is buying a house with a home equity loan from a previous home and fixing it up to sell at a higher price. Big money can be made in this business if you know what you are doing.

Now, the mortgage lenders and builders would rather sell their homes to people who want to buy the house to live in, not to flip. Sometimes, these builders will include a clause in the sales contract stating that they can't sell the house until a year has gone by. They can even buy the house back if they suspect that a flip is in the process.

You can see how risky this business can be. However, the property owner really can do whatever they want to with their house. If flipping is their business, it can be quite risky, but some people are up for this game.

The thing to remember though is that this is a real estate fad. When will this fad burst? No one knows, and neither does the flipper. Yes, they can make big amounts of money fast, but when things don't go as planned, the big money is not there, but big money has been spent.

So, if you have thought of going into the real estate business, it depends of what kind of risk you want to take. Do you want to play it safe on the seller's side? Or, are you the risky type and want to flip? You must be confident enough to take the risks and win.