Shoud you try to make money online? Or should you try to make money flipping houses? That is the question. And what’s the answer? It depends on who you ask.
If you go to a Network Marketing meeting, they will tell you that flipping houses is too risky and that the safe way to go is with Network Marketing.
If you go to a Real Estate Investing Seminar or a Real Estate Investing Club, they will tell you that it takes to long to make money in Network Marketing and that you can make bigger money faster flipping houses.
There are no wrong answers……..it really depends on what your style is. You can make money doing either.
Here is my take
I like having the ability to make a full time income working from my home computer, laptop, or even my phone. How great it would be to be able to make a full time income and be able to live anywhere in the world where I can get a high speed internet connection and make money.
People are doing that already. I know of some internet marketers who live in on the beach in Thailand and who live like kings and queens making only $2000 per month. They don’t have to worry about commuting to work, they don’t have to worry about cold weather or snow, or having to commute to work through snow….yuck!!! A lot of them only work 10 to 20 hours per week and spend the rest of their time relaxing on the beach eating delicious food and drinking delicious cocktails.
On the other hand, I know seasoned Real Estate Investors who have developed a good eye for finding a very ugly and hopelessly battered house and they can get theirs hands on these homes for pennies on the dollar. They have a team of remodelers, handymen, and contracters who can fix up this hopeless home into a beautiful remodeled home for $30,000 to $40,000 worth of work, then they can still sell it for a slight discount, and still walk away with $20,000 to $200,000 worth of profit in their pocket.
There is one thing in common between making money online and making money flipping houses:
There is a learning curve
Just like you will probably not make money immediately starting an Online Business or a Network Marketing Business, you will not make money immediately in Real Estate Investing either. Both require training, both require time and patience.
Here are some differences between making money by flipping houses and making money online:
- You can work an online business from anywhere in the world where you have an internet connection, with Real Estate Investing, flipping houses, or even wholesaling houses for the most part requires you to live in or withing a few hours drive of your housing market. I know there ads floating around the internet teaching you how to flip houses and invest in Real Estate anywhere in the country from the comfort of your own computer (you know, without having to leave your house), but investing in Real Estate you can’t see, touch, and smell sounds scary and risky to me.
- Investing in Real Estate requires you to spend time and gas driving the different neighborhoods, pounding on doors, getting yelled at for doing the latter, or hiring a wholesaler or birddog to go find deals for you. The problem with the latter is that many beginners are attracted to wholesaling and birddogging and haven’t developed the knack of finding a good deal. If you start an internet based business or even if you join a network marketing firm, you do not ever have to leave your home to find prospects. You can do literally all of it from your computer if you want.
- If you have a full time day job and you decide to start investing in Real Estate, you will need to drive the neighorhoods and knock on doors during the evenings and weekends looking for deals. If you have a an online business, you also need to work evenings and weekends. So what’s the difference? During the winter months after we have set our clocks back an hour, it gets dark anywhere from 5pm to 6pm depending on where you live. Some places further north get dark even earlier than 5. It’s hard to find ugly homes when you can’t see, and people don’t like you knocking on their doors in the evening, ESPECIALLY when it’s dark.
- You can make a huge amount of money off of only one Real Estate Deal, while it takes time to earn a residual income with an online business.
- BUT, the risk is greater with Real Estate Investing, I have heard of investors getting a deal that they thought was a gold mine, but turned out to be a tar pit and they lost over $100,000. In an Online Business, you will likely lose only a few hundred dollars at the most, if you lose more than that, you are doing something wrong.
- In Real Estate Investing, your client/prospect base will only be those who are in your local housing market, or those who want to move into your market, if you start an online business, your prospects and clients can potentially be anybody in the world.
Where do I Stand?
I prefer having the ability to live anywhere I want in the world, and to market to prospects anywhere in the world. With an online business, I can do that. I also don’t like knocking on doors or driving around endlessly looking for a hot investment deal and having to negotiate with sellers. I totally get that a good real estate investment deal can potentially make me tens of thousands of dollars from a single transaction, but where there is greater reward, there is also greater risk.
I am currently working an online business now through an Affiliate Marketing Training platform known as Wealthy Affiliate. Not only do they teach you how to make money online, they also teach all the ins and outs of Internet Marketing, such as SEO, keywords, email marketing, Social Media Marketing, etc.
Do you agree with me? Comment below.
Do you disagree with me? Do you believe Real Estate Investing and Houseflipping is where it’s at? Comment below.