What is 'real estate speculating'?

What is 'real estate speculating'?

Michael Corbett (Real Estate Expert) gives expert video advice on: What is real estate development, or 'flipping'?; What is 'real estate speculating'?; Who can engage in real estate flipping? and more...

Let me explain what 'speculating' is. Speculating is not flipping. Speculating is buying a property that hasn't been built or is about to be built or is already built and is sitting available and someone buys it hoping that it will increase in value because the market is going up. However, when the market is going down, as it is now all across America, and in many, many cities it has gone down severely, you are not in control of the property and the value, the market is. So if you've speculated and bought something hoping the market will make you money, you're going to lose. I'm a big proponent in not speculating. I'm a big proponent in flipping because when you flip; you are taking control over the market by adding value to the property with your own hands. You are not expecting the market to bail you out.