Conventional real estate companies either invest or trade in real estate. The investment arm of the company is typically a long-term investment whereby one purchases property with the intention of holding onto them over time. Conversely, trading is a short-term investment in which traders will buy a property to only fix it up and sell it quickly for a higher price.
Because real estate investing demands one to buy a more desirable property, it requires a higher initial investment and more time to turn a larger profit. In comparison, trading does not require the same initial investment quantity, but it may be more risky if the property is unable to be sold as fast as initially planned.
Choosing which model of investing is best for you depends on your market level experience, expertise and strategy. There is no perfect investment, and both models can return large profits if executed properly. It is ultimately based on the needs and desires of your personal portfolio which dictates the method of real estate investing you choose to take on.