CW Blogcast 56 - The problem with flipping... - a podcast by Jason Hartman with Ben Carson, Noam Chomsky, Robert Kiyosaki, John McAfee, Brian Tracy, John Sculley, Thomas Sowell, Pat Buchanan, Jim Rogers, John Gray, Harry Dent, Bill Ayers, Steve Forbes, Daniel Pink, Todd Akin, Meredith Whitney, Denis Waitley
from 2013-05-13T14:41:23
If you’ve been a follower of Jason Hartman and Platinum Properties Investor Network's style of investing for any length of time, you know we don’t believe flipping properties is the best approach for creating wealth in real estate.
There are several reasons we think this way, but let’s consider a single one - taxes. Part of any investor’s success is the extent to which he manages to avoid paying taxes. Let’s make it clear we’re not encouraging illegal activity. What we do suggest is you take advantage of each and every method of legal avoidance the IRS presents you with. That’s why we were such fans of Go Zone investing.
And that’s why we don’t like flipping.
Unless you’ve been living under a rock on the far side of the moon, you’ve probably heard about flipping. This is where you find an under-priced house that needs a little renovation. You buy it, do the work, and immediately re-sell it for a little (or maybe a lot more) than what you paid.
The problem with flipping is you create TAXABLE events every time you sell. This takes money out of your profit margin. Yes, you could make some money but we don’t believe you’ll become wealthy this way. For true wealth generated by the best form of real estate investing ever, check out The Complete Solution for Real Estate Investors at www.JasonHartman.com.
Further episodes of The Creating Wealth Show Blogcast