What to Do with Investment Properties
July 1, 2015
Investment properties offer unique and diverse opportunities to produce income. Whether you are looking for a long term endeavor like a rental house or an apartment building, or you are looking to make a quick profit, there are investment properties out there for you.
This article is going to deal with three different ways you can take advantage of these properties and the income they provide. These are all great strategies, but before taking a crack at one make sure that the strategy you choose fits the business model that you have in mind.
Flip Them
One of the most common ways to take advantage of one of your properties is to flip it. If you have already cut a deal and own the property, chances are you already have an idea of what the after repair value is. If you are good at running comps on your investment properties then you should know what all updates you need to make on a flip. Make sure you put effort into giving your investment properties the wow factors that they need to sell at their maximum after repair value.
After you finish repairs and updates on the property, it is time to sell it. One of the best things about working with investment properties is the ability to sell through different avenues. The smartest way to sell one of your investment properties quickly is to list it with an agent. You could try to sell your investment properties yourself but you will probably pay more in holding costs that agent commissions.
Wholesale Them
Wholesaling investment properties requires a lot of the same resources that flipping does. You have to accurately be able to determine a property’s after repair value and buy the house at a low enough cost me turn a profit. Typically a professional wholesaler has a group of go to investors that they sell their investment properties to. As a wholesaler, you charge a finder’s fee. That is how you make money off of those investment properties.
You always want to try and have a buyer lined up before you close your own deal. If you want to be a fast and efficient wholesaler you can do a double closing. This is where you close both deals in the same day, normally in the same room within a short period of time. This cuts your selling time by weeks. With the right resources and relationships an individual could make a pretty good living off of wholesaling investment properties.
Rent your investment properties
Renting out your investment properties is a great way to build up passive income and retire early. It is a bit complicated to get started, but once you get the ball rolling of your first rental property it’s easy to keep on going. Just like flipping and wholesaling, you need to purchase your investment properties at enough of a discount that you can charge a fair amount of rent and not struggle to payback your loan (if you are using a loan that is).
Being a landlord requires you to be on top of your properties. You will need to be good at screening tenants and available in case any issues happen with the house. As long as you keep track of your rentals and are fair with the tenants living in them, you should have no problem profiting from renting out some of your properties. As you can see there are many ways to profit from investment properties. Whether you are flipping houses, profiting from finders fees as a wholesaler, or building a real estate portfolio as a landlord, real estate is worth investing in.
Many people play the lottery or put money into stock. Why not put your money into a sure thing? If you own investment properties, you own something that everybody needs. People will always need houses, whether it’s for a short stint or for the long haul.
