Real estate investment refers to generating profit out of a property you own. It’s a lucrative business that can give you a steady source of income if done right. If you want to earn in the real estate market but don’t know where to start, here’s how you can strategize your entry into real estate investment, according to real estate agents in North Carolina.
Flip Investment Properties
The premise of house flipping is simple; buy a North Carolina property for sale at a low price, renovate it, and sell it at a higher price. Properties that are in poor condition or need a little upkeep are often sold at very low market prices. If you know how to properly estimate renovation expenses, you can turn any dilapidated property into one that’s in pristine condition and ready for occupancy, without going over your intended budget for major and minor upkeeps. Just make sure you flip the home as soon as possible so you can generate income to pay off the mortgage.
Rent Out a Property as Landlord
Another way to enter the real estate investment market is to rent out your property. As the landlord, you’ll be handling mortgage payments, taxes, insurance, maintenance, and other concerns of your tenants hands-on. While this may be an unglamorous job, renting out your property long-term can rake in a reasonable amount of profit, especially if your property is located in a desirable area.
Rent Out a Property for Short-Term Stays
If flipping a property or renting it out long-term seem too intimidating for you, you can start by focusing on renting out short-term rentals. Rent out a room in your home or an entire vacation home while you’re not occupying it. You can set the minimum and maximum number of days guests can stay in your rental, and your main clientele are vacationers who might be out most of the day. This way, you’ll learn the basics of real estate investing without taking the plunge right away.
Invest in Real Estate Investment Trusts (REITs)
A Real Estate Investment Trust (REIT) is a company that handles income-generating properties on behalf of a pool of investors, including you. Most REITs generate profit from non-residential rentals and interests, and distribute the income among shareholders as dividends. As an investor or shareholder, you don’t have to purchase, manage, or finance properties yourself. Rather, you buy shares through a brokerage firm.
Real Estate Investment Groups (REIGs)
Real Estate Investment Groups (REIGs) are similar to REITs, but they’re more focused on residential properties for rent. An entity purchases or develops a set of residential properties that investors can purchase as members of the group. As an investor, you’ll receive profit without directly dabbling in property management and administrative matters since the group will do these for you.
Ready to turn North Carolina real estate for sale into an investment? Consultwith us here at White Oak Realty Group. We have a list of properties that make profitable investments in the real estate world. Call us at 828.782.0472 for details