Flipping Versus Buying and Holding
how safe is house flipping in today's market?

ALISO VIEJO, CA, October 13, 2010 /24-7PressRelease/ -- Some real estate investors are attracted to the quick money that can be made from flipping properties. The question is: how safe is house flipping in today's market?

Flipping is the practice wherein speculators buy homes or commercial property, fix it up and then quickly resell it at a higher price, sometimes within months. In a booming, rising real estate market, flipping can be a way to make a quick buck. The downside is that if you can't find a buyer, or if the market goes bust, you can get stuck with a property.

Successfully flipping a property usually relies on certain elements, including:
• Motivated (even frenzied) buyers—a herd mentality is always a good stimulus
• A perception of limited properties or land—as they say, you can't manufacture more land, so prices will always go up
• The right climate—lots of media publicity touting real estate moneymaking opportunities
• A willingness to lose your shirt and risk foreclosure on your property if you get stuck

"Many flippers, or short-term investors, made money when the market was going up," says Steve Dexter, co-author of the new book "Buy & Hold Forever: How to Build Wealth for the 21st Century." "But not anymore. Just take a look at the financial disaster, especially foreclosures, in Florida and other states where speculating and flipping were out of control."

In his book, Mr. Dexter and his co-author, David Schumacher, reveal investment techniques that can work in the midst of a slow real estate market or a booming one, for first-time buyers or seasoned investors, and for buyers of single-family residences, apartment buildings or shopping malls.

"The days of making money from flipping real estate and making thousands of dollars in profit are gone," says Mr. Dexter. "Flipping deals are no longer profitable, and smart investors stick to a buy and hold strategy that works in any market."

Why is the buy and hold approach always good? As a long-term investment strategy, it generally:
• Creates less risk
• Helps to build wealth over the years
• Forms a solid retirement base
• Provides slow but steady growth
• Offers the possibility of equity that can be used as leverage in future projects

"Real money comes to those who buy and never sell," says Mr. Dexter. "The nature of short-term real estate investment deals, including house flipping, is very risky. It's not a good way to build a solid and secure financial future."

About the Authors
DAVID SCHUMACHER, PhD, was an investor, magazine columnist and college instructor in the field of real estate. One of America's premier experts, he was also a multimillionaire property owner. He parlayed a modest investment into property holdings worth $20 million, including houses, condos and magnificent oceanfront apartment complexes in Southern California. He also authored "The Buy & Hold Real Estate Strategy" and "Buy & Hold: 7 Steps to a Real Estate Fortune."

STEVE DEXTER is the president of National Capital Funding, based in Laguna Beach, California, and an expert commentator for CNN/Money, CBS Radio and Fox TV. He is the author of "Real Estate Debt Can Make You Rich" and "Beat the Banks: How to Prosper from the Rising Wave of Bank Foreclosures."

For more information, contact Steve Dexter at stevedexter@hotmail.com.

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