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After purchasing my home on 2011, I have become a regular viewer to basically any television show about home improvement. I’ve noticed a growing trend is shows like Property Brothers, Investment Property, Property Wars, Flip This House and many more that all focus on different ways to invest within the real estate market. Whether it’s through sweat equity, flipping a house, or renting a house, each of these shows explores a different way to expand your own personal investment portfolio through the real estate market by taking noteworthy risks on a questionable investment. The most apparent advantage to flipping property investments is the ability to immediately realize gains and to have capital tied up for the least amount of time possible. Also, unlike the stock market, which can turn in the middle of a day, real estate markets are more easily predicted and can produce extended time periods that compensate investors for flipping properties. Flipping properties is an approach that is best suited for periods when prospects in the stock and bond markets are low, or for investors hoping to realize short-term capital gains for as long as the current market will allow. Like flipping properties, trading penny stocks can be an effective way to quickly gain quick income. Penny stocks are high risk, high reward stocks that can jump double or even triple digit percentage gains in just a single day, or sometimes weeks or months- just like flipping a house. The reason why these stocks are high risk is because of the the small size of the companies and their newness in the industry. Details about these companies are sometimes harder for investors to get quickly. The same is true for flipping houses. Buyers are often unable to see the inside of the house prior to bidding so they don't know for sure what they are getting. The homes for sale don't have the transparency of typical homes for sale and there is a significant risk associated with buying one of these homes - just like a penny stock. The lack of transparency draws significant risks, but potentially significant rewards to go along with it. In the real estate market, the more interest there is in a property, the higher the price will be as a result of bidding. This leaves investors with less room for gains which is a bad thing. Alternatively, with penny stocks, the more interest there is in the company, the higher the price will go which is great news as long as you got in early. When dealing with penny stocks, something as little as being noticed by a couple of large investors could be enough to send the stock double or triple its value. Because increased interest often affects the price of penny stocks dramatically, promoters are frequently used to drive interest and bump the price up. Like flipping properties, there are risks to investing in penny stocks, but these can all be managed with the discipline and knowledge on when to buy and sell. Being sure to lock in profits on a large jump in price is the one way an experienced penny stock trader can usually manage the risk. Being too greedy could result in a loss of any profits. The same can be said for flipping houses - the investor needs to get in at the right price and know when to get out.
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Investment, Real, Estate, Penny, Stocks,
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