Two investors compare active real estate flipping, where you handle rehabs and pocket $30,000 to $40,000 per deal, against passive investing, where you wait 3 to 4 years for returns with minimal work but smaller monthly cash flow.
Alright, so who do you think is going to win? Passive investors.
Active investors. I like active. It's more exciting. It's more fun. You get big windfalls of cash.
I like passive because you get the big windfalls of cash and you don't do a thing.
I think you get wee windfalls of cash every single month. Which is fine. But I'm going to be able to control exactly how much money I make by buying a really good property, rehabbing it, figuring out all the ways that I can, you know, do the cost savings and then when I close.
Whoosh.
30, $40,000, maybe more.
Yeah, but I can invest passively and do the same thing. But somebody else is finding the property and somebody else is doing all that. And three, four years down the road I get that windfall cash and I did not do anything.
Okay, fine. You guys have to choose who you are going to be with. Are you gonna be with Team Flip and you want a passive route or you want Team Danny and. And you're going to do the active route.
Deep lips.
Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes
