Third Entry

This was my original third entry ...

---

Flipping Properties
I realized yesterday that I may have been a bit harsh on the authors of Flipping Properties. I hadn't read the book in a few weeks, and decided to flip through it last night. It really is a better book than what I said initially. It has a lot of good information in it regarding various aspects of flipping properties, including the different types of flipper, legal aspects, negotiating, forms, etc. I am now revising my rating of the book from 4/10 to 8/10.

A Different Mindset?
Originally, I was sold on the idea of using lease options (L/O's) and rentals as my primary ride to financial freedom. After taking a step back and running some figures, I calculated that it would probably take me a long time to reach my dream, unless I devote a lot of time up-front to it. After re-reading Flipping Properties and reading more on the different avenues, I feel that Sub2's, CFD's, wholesale flipping, and Short Sales are probably the best approaches, and quickest as far as getting out of the rat race sooner. One thing that sticks in my mind is the saying that one should never own real estate, but instead they should control it. Also, investing with L/O's and/or rentals exposes one more to potential lawsuits from tenants. Conversely, flipping (wholesale or retail) properties leaves little time for a person to sue. Another aspect is with cashflow. When a person uses L/O's and/or rentals (moreso with rentals), cashflow is assumed slowly over time. However, when a person flips, the reward is generally immediate. One last item is dealing with property management. In the Weekend Millionaire book, the authors stress that a person should use a professional property management company - even if they only have 1 or 2 properites. Everywhere else I've read/heard, people are saying to DIY - unless you have a lot of properties. Either way, you will either be dealing with property management yourself or dealing with keeping tabs on the professional property management company you've hired to do the same job. I am still open to L/O's and rentals, its just that I will be more focused on flipping - at least in the beginning.