There are many things that can help you get a good investment portfolio. Investing in real estate in Chapel Hill NC has become quite a popular thing nowadays. Real estate usually is a sure way to build up your credit score – better than other assets anyway. What’s more, when you get into buying real estate, you get a couple of options in front of you for moving forward. Firstly, you can become a landlord and buy the property for yourself. Then, you can call a reliable Chapel Hill moving company and move in there, or rent it out. On the other hand, you can look into a Real Estate Investment Trust or start working with other real estate investors by lending them money. Today, we take a look at how you can start doing this in Chapel Hill, NC.
Investing in real estate in Chapel Hill NC by becoming a landlord
The first way in which you can start investing is by becoming a Chapel Hill landlord. First, however, you will need to take stock. You need to know exactly what you intend to do with your property and how to dispose of it before you buy it. So consider your options. Are you looking into flipping a home? Or is renting long-term a better option for you? All of these will have different ways for you to invest in. Just like that, dealing with the finances and taxes will be different too.
Another thing that you need to have when you are investing in real estate in Chapel Hill NC is a reserve fund. This goes both ways – whether you are flipping or renting. The rule of the thumb is to have money for a mortgage for six months in the case of something going awry with the property.
Finally, before you actually start thinking about investing in real estate in Chapel Hill, you should do some research. Contact local movers Morrisville NC and moving companies from nearby communities and talk to them about what the area has to offer. You will want to make sure that you will make some profit out of your investment. So consider the expenses and your expectations, and see if it all adds up. One of the biggest factors is the neighborhood and the changes it will go through in future times, so consider this carefully!
Dealing with real estate investment trusts
The second option you have for investing in real estate in Chapel Hill is by purchasing shared in real estate investment trusts (REIT). First, of crouse, you would need to understand what REITs really are. Simply put, they are companies that are connected to some commercial real estate. They can either own it or manage it, and anyone can profit with them without having to purchase the real estate.
What you need to do is to figure out which REIT you want to invest in. There are multiple ways to do this. First, you can explore Chapel Hill and see what might be the best real estate there. Secondly, you can talk to your commercial movers and get some helpful advice from them. Whatever way you pick, these are the types you should look into:
- retail REITs, which include shopping malls and stores. You will want to invest in them if the sales are high;
- residential REITs are apartment buildings. Both these and retail ones charge rent to tenants and earn money in this way;
- office REITs are office buildings. These get long-term leases from other businesses – and you should consider the state of the economy in the area before investing in real estate in Chapel Hill NC connected to offices;
- healthcare REITs are working with hospitals, medical centers and nursing homes. They make money from the healthcare system itself and finally,
- mortgage REITs make money by investing in mortgages instead of doing it in the property.
To be able to invest in real estate with REITs, all you need to do is find a broker or a financial planner. They will help you find the right REIT for investment, and you can purchase shares with a company. Some you can find on a stock exchange, while others are privately traded.
Investing in real estate in Chapel Hill by lending money to others
Finally, the third way you can invest in real estate is by lending money to others who are investing in real estate in Chapel Hill NC. For this, you will need to delve a little into economic terms. Start with understanding what private money means. You are lending it if you are giving your own money to an investor. You will want to do this if you are already sitting on some cash from other real estate investments, and you want to keep making more money. This way, you are taking the place of a bank or a financial institution. The security is in the real estate.
You have a good advantage when doing this. Investors love private money lenders because there are no restrictions that banks make. What’s more, they can get money quicker, and the process is still transparent. However, private money lenders can charge higher rates because of this. What this means is that you will be earning more money in the process – and you can expect to be repaid sooner (5 years is an average). Usually, people who want to flip a home will look for private money lenders. This is because banks consider this investment risky, so they usually don’t give out loans for it.