Real estate investors know that every new property they acquire comes with plenty of decisions. Some investors have their minds already made up on what they will do with a property before they close the deal, but some situations have that decision left up in the air. If you invest in real estate, then it helps to understand your options before you take action on an investment property.
Flip the Property
If you buy a great residential property in a nice area for a low price, then consider flipping the property yourself. Put together a budget you think you would need to make the property irresistible to end buyers, and then compute how much profit you would make if the property sold at retail value. If the numbers work, then go ahead and flip for a profit.
Sell to a Wholesaler
If you are looking to get out of a property as quickly as possible but do not want to put the time or effort into flipping it, then sell it to a wholesaler. A wholesaler will pay you cash for your property, and then turn around and sell it to another investor who will flip it. If you got a great deal on a distressed or foreclosed property, then selling it to a wholesaler can be a fast way to make some cash.
Not every real estate investor wants to become a landlord, but it can be a lucrative arrangement if you can make it work. You usually need multiple properties to make big profits on renting residential homes, but it is still a great source of passive income. You can hire a property management firm to take care of maintenance and dealing with tenants, and all you have to do is deposit the rent checks.
Live in it
If you have purchased a nice property, then consider living in it for a couple of years and then selling it for a profit. The tax laws change if you sell your own residence that you have been living in for at least two years, and you can do remodeling projects throughout your time living there that will significantly raise the return on your investment.
It is not common, but some real estate investors do wind up donating properties to charitable organizations. The benefit for you, aside from helping your fellow human beings, is a huge tax write-off at the end of the year.
Sell it as-is
If you get the deal of the century on a great property that needs no work to hit the retail market, then put it up for sale and rake in the cash. It is not common to find a great property at a discounted price that can be sold immediately, which is why you should take advantage of the situation if it ever presents itself.
Real estate investors are always looking for great ways to make money, and they have plenty of options when it comes to the property they just purchased. From flipping the property to making it your new primary address, a real estate investor can take several different paths towards profit after they have closed the deal on a great property.