When it comes to real estate investing, there are two main strategies that investors use to make money: fix and flip or fix and hold. Both have their pros and cons, so which one is right for you? 

Fix and Flip

This strategy, otherwise known as “flipping”, is when an investor purchases a property to quickly repair, renovate, or update it in order to resell it at a higher price. This approach requires a quick turnaround on investment, usually within 6 months. While this can provide the opportunity for greater returns on investment due to having limited time and costs associated with ownership of the asset, it also has its drawbacks. The main downside is that you have limited time to identify profitable markets and properties before you need to make your move. 

Fix and Hold

On the other hand, fix and hold investing is when you purchase a property with the intent of keeping it long-term as part of your investment portfolio. This method is appealing for investors looking to increase their long-term wealth thanks to the steady income generated by their rental property investments. However, there are some risks associated with this strategy as well since you can be responsible for larger up-front costs such as maintenance and repairs, in addition to carrying the burden of ownership fees like taxes or insurance until the asset is sold. 

At the end of the day, both strategies offer potential rewards if done correctly. Which one is right for you will depend on your individual goals and risk tolerance level. Consider researching both approaches further before making a decision. Additionally, it’s always important to consult with an experienced real estate agent or financial advisor about any major decisions related to investing in real estate. If you need financing for commercial real estate, contact the team at Private Client Capital Partners today.