If you are thinking of investing in real estate, there are all kinds of different options available to you such as lease/rent to own, commercial property and more.  Real estate is one of the quickest ways to build a big fortune, and many millionaires around the world will agree with you.

So which strategy should you use?

Lease or rent to own properties can often bring in better profits than straight renting for many reasons. The main reason is that those who one day hope to own their own home take better care of them than those who are just renting.  This cuts down on your repair bills even if they eventually decide to move on.  You can also charge a greater rent, applying the difference to their purchase.  This also cuts down on your loan costs.  If helping families that have hit a bad patch achieve the American dream is your aim, then this is the option for you.

Commercial property is a great option as its returns are relatively secure compared with other types of rentals.  The drawbacks are that it requires a large amount of capital up front.  This is why many investors do not consider these ventures until they have built up a sizeable portfolio, good credit ratings and fluid cash.  These are much more stable investments since many businesses prefer to remain in the same place for many years, providing a constant income stream.

House flipping is perhaps the most popular form of property investing and a great way to make a good income very quickly.  But it’s not without its own high risks.  The rewards are great if all goes well, but you have to decide if you want to accept and manage the risk.  This must be a decision that you have made based off research as well as self introspection.  If you are a person who gives in easily to the threat of failure, then this may not be the job for you.  If you are someone who recognizes risks but can remain calm and do what is necessary to mitigate them, then you are probably ready to proceed.

Renting a house and becoming a landlord are perhaps not quite as flashy as owning a large number of properties or continually fixing up ugly properties for instant profits, but it is a way to have a steady income and a comfortable retirement.  This is a long term plan and if you are a cautious investor with the appropriate set up, this is well worth chasing.  Many people not willing to dedicate their life to the pursuit find it a good mix of effort and return on investment.

Whichever real estate investment you choose to make your fortune, you need to decide where to start your journey.  Once you have begun, it is a great idea to spread your risk and invest in more than one type.  This will minimize your potential for loss in the current volatile market and is a basic strategy in any type of investing, not just real estate.