There are several primary ways to invest in Real Estate.
Some are more popular than others and each has it's own risk/reward factor.
In this article we'll discuss some of the more popular investment methods.
House Flipping Flipping usually means purchasing a property, doing some repairs/upgrades on it and selling it for a profit.
In a flipping situation, you're trying to get in and out as quickly as possible.
A house flipper has typically taken a mortgage out on the property and has to make monthly payments until the property has been sold.
This tends to be the a risky investment, especially for beginning flippers.
Rental Properties Rental properties is exactly what it sounds like.
You purchase a property with the intent of holding on to it and renting it out to make an income.
In many cases this kind of investment won't provide you with much in the way of monthly cash flow, but you'll benefit by having your tenant pay your mortgage off.
Of course the downside with this type of investment is either not finding a tenant or overestimating the monthly rental value.
Wholesaling Finally, there is real estate wholesaling.
This is my personal favorite investment strategy.
With wholesaling, the investor is taking control of a property (often for as little as ten dollars) than markets the property to prospective buyers.
When the property is sold, the investor pays the original owner and keeps the extra as profit.
Wholesaling transactions tend to be a very quick, usually the entire process takes place within weeks (and sometimes even days).
Well that's the big three in real estate investing.
Regardless of which option you choose, the key is always in the planning and understanding of the risks that will be involved.
In real estate, the devil really is in the details.