You undoubtedly already realize that a real estate investor does just that – invests in real estate. What you might not know is that there are many different kinds of investors, and each typically focuses on a specialized area of the market. Not all investors are created equally, and just as in any other business there are good ones and bad ones.
Some real estate investors buy properties that are already in good shape and either rent them out, or continue in a landlord capacity with the existing tenants. These people – or clubs/companies – tend to hold onto properties for a long period of time in order to maintain cash flow from rents.
Others buy distressed or run-down properties, fix them up, then rent them out. They also tend to be in it for the long haul, sometimes with the intention of reselling in the future for a higher price than they paid for the property.
A flipper is a type of real estate investor that buys properties – typically with serious repair issues, or those in foreclosure or property tax trouble – and fix them up to resell immediately.
No matter which type of real estate investor you sell your home to, it takes the burden off of you for doing expensive repairs, upgrades, and staging, as well as eliminates the hassle of listing your home and then paying a fat commission to the agents (and possibly part of the closing costs) when all is said and done.