You want to start making your money work for you by investing it. And you know that real estate is the most secure option, given all that you have at your disposal. But which real estate investing option do you want to use? There are still many, such as investing in a REIT, flipping houses, or becoming a landlord, to name just a few. But when you want to be a real investor, flipping houses should never be something to be considered.
This is because flipping houses isn’t an investment, it’s a job. When you’re flipping houses you have to actively be out there every single day doing your job, not watching your investment grow. You have to be hitting the pavement, even when you’re out for lunch, combing through listings, and attending auctions – and this is only for the first step, finding a house that’s cheap enough to buy, yet that you can turn into a home of dreams, worth a ton of value.
Once you’ve found the home you want to flip, then the real work starts. You need to hire contractors to demolish certain parts, repair or replace anything that’s broken (and in the case of flipping houses, that’s usually a lot,) and you need to get it back into not just ship shape, but into “everything is perfect” shape. And you must do it all on deadlines and under extremely high pressure situations.
After that, you still have to sell the home. This may include hiring a home stager, and definitely a real estate agent, and hoping that the market is good enough that the home will sell fairly quickly. Because each day it sits on the market is a day that you’re losing money.
It’s a lot of work, flipping houses; and that’s why it’s not an investment. Sure you’ll put your money and hard work into something in the hopes of getting a huge reward that’s double the cost, but that’s what a job is. Whether you pay for gas to go to that office, or pay for lunch as you would with an office job, you’re still putting time and effort into something that will give you more than that in the end. You’re working, not investing.
Investing with an MIC however, is true blue investing all the way. You invest in a package of mortgages (that already have homeowners paying them off,) and you reap the cost of interest on that investment. Once you register and choose an investment package with an MIC, the hard work is done. And in this case, it’s not even all that hard.
Now you can sit back and watch your investment grow. Now you can start to reap those rewards. Now, you are an investor. And what are you going to be doing in the meantime? Go to your full-time job, find new investments to make you even more money, or heck, even go out and improve your golf game. With true investments such as MICs, it’s all about passive income. And that’s the biggest difference between flipping houses as a job, and putting your money into mortgages as an investor.