Have you ever thought of buying and selling real estate, and you’d like to know more about it?
Or maybe you need to sell your own house, but don’t know if you can trust selling it to a House flipper?
Advantages of the real estate trader profession:
- Rapid Income Generation: The real estate trading activity allows for quicker profit realization compared to other real estate investments, such as rental properties, where one often has to wait for several years to see returns.
- Financial Independence: Being a real estate trader provides a certain level of financial independence, allowing individuals to be their own boss and manage their own business.
- Versatility of the Profession: The real estate trader’s profession is diverse, offering a variety of tasks that can be exciting. Required skills cover real estate, negotiation, project management, taxation, etc.
- No Tenant Management: Unlike rental property investors, real estate traders do not have to deal with tenant management, avoiding issues related to the daily management of rental properties.
- Possibility to Start Alongside Existing Activity: Individuals can start practicing the real estate trader profession while maintaining a primary activity, before fully committing once they have gained experience.
Disadvantages of the real estate trader profession:
- Constant Involvement: The real estate trading activity requires constant involvement, which can be both an advantage (for generating income quickly) and a disadvantage (due to the continuous workload).
- Complexity and Versatility: The variety of necessary skills, both in real estate and in cross-cutting areas such as taxation and accounting, makes the profession complex and demanding.
- Administrative Procedures: Buying and selling operations can involve complex administrative procedures, especially regarding urban planning, with administrative authorizations often taking time.
- Network Dependency: The efficiency of prospecting heavily depends on the network developed by the real estate trader, making it challenging for beginners to find good deals.
- Financial Risks: Real estate buy-sell projects involve financial risks, including unforeseen costs during construction, inaccurate estimation of the real estate market price, and the possibility of a market downturn.
- Time Loss: The associated timelines of real estate transactions and administrative procedures can lead to significant time loss.
- Legal Risk: As a real estate professional, the trader is subject to legal liability towards buyers, which can entail legal risks.
In summary, becoming a real estate trader offers financial benefits and a degree of independence but comes with challenges such as the complexity of the profession, financial risks, and the need for constant involvement. A thorough understanding of real estate markets, diversified skills, and careful risk management are essential for success in this profession.
