If you’re going to make money by investing in real estate, first you need to determine your financial goals. Do you need to make money quickly, invest for your children’s college fund, or build wealth for your retirement? Once you determine your financial goals, you need to decide which investing strategy works for you.

Three main investment strategies exist for real estate: 1) wholesaling (flipping properties),2) purchasing income-producing properties, and 3) buying investment properties. Your current financial needs and your long term goals may determine which you pursue now and in the future.

1. Wholesaling property. If you’re low on cash, get started by wholesaling property. Find a bargain property and then sell the contract to another real estate investor. The concept of wholesaling real estate is no different than you would think of for wholesaling any other product. It’s buying property below market value and selling it below market value allowing for the retailer to make the larger profit. You can join your local real estate investors club to find investors/retailers willing to pay you for finding good deals.

2. Income-producing property. If you’re looking to increase your monthly cash flow, look for income producing properties that return a positive income from month-to-month. Start with a single-family house. Look for a bargain below market value. Maybe, fix up the house to generate top rental income. Find houses that will rent for more than your mortgage payment. You may need to go out of your home area to a location that supports this type of return on your money. In a few years, your rental income should go up. Many real estate investors enjoy thousands of dollars each month generated by income property. However, some investors don’t like dealing with tenants and prefer to make money in other real estate ventures.

3. Investment property. If you want to make money focusing on profits, investment property offers a different strategy. Instead of worrying about rental income, look for a property you can transform and sell or property that will appreciate significantly over time. Besides fixing a house up, you can transform a property by changing it. For instance, some investors buy apartment buildings and turn them into condominiums. Many investors speculate in land and make money by holding the land until new development in the area increases the value.

Examine your own financial situation along with your long-term goals. You can get started by flipping properties, move onto income properties, and then make larger profits with investment properties. You might end up using a combination of all three strategies to make money investing in real estate.