Fix and flip, with the profit you can buy a new better (more expensive) property which will bring you an even higher profit after you resell it. Then, with the profit from the second property, you buy a third one. In other words, you enter into a cycle of fixing and flipping which should generate you more and more money over time. Once you’ve made enough profit, you can even start buying two fix-and-flip properties at the same time. Or you can use some of the money to buy a rental property that you will rent out to tenants. But be careful! Fix and flip is not for anyone. It requires an investor who is willing to put a lot of efforts and time into this investment. It is more of a full-time rather than a part-time, second job.

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Wholesaling is essentially a fast flip in which a wholesaler inks a contract with a home seller, then sells the home to another buyer at a higher price before the first contract closes. The wholesaler’s contract with the homeowner typically includes a contingency clause that lets the wholesaler out of the deal if he or she isn’t able to find another buyer, limiting risk for the wholesaler.

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