Real estate investments are wonderful for a variety of reason. From diversifying your portfolio, to being able to sell a home for profit, there are many positives in buying both land and residential properties. But, for the investment beginner, where’s the best place to start?
It can be an overwhelming process, from finding the perfect property to determining whether you should flip or rent, there are unlimited options for you to choose what best fits your goals and lifestyle.
Thankfully, we’re here to help! As your local Raleigh and Wake Forest area experts, we have all the resources and knowledge you need to make a successful investment. No matter if you’re looking to invest in a single-family rental home, a commercial opportunity, or to flip a home completely, we’ll guide you through every step of the process from start to finish. Check out our comprehensive guide on tips you need to get started.
Single-family homes account for almost one-third of the rental market, making it a fantastic opportunity for those looking to diversify their portfolio from traditional stocks and bonds. To get the most out of your investment, consider the following:
- Know Your Investing Criteria (high risk or playing it safe)
- Be Open to Picking Properties Outside of Where You Live
- Understand Real Estate Investing is a Marathon, Not a Sprint
While these tips may seem like common sense, they are worth keeping in mind while picking a property and managing your expectations. Setting your investing criteria early helps establish whether or not your property will be high risk/high reward or low risk/slow growing, and sets the boundaries for the location of your investment, as well as your expected results.
With the abundance of shows on HGTV, purchasing a home to flip may seem like a very simple and straightforward process, however it can be a very time- (and money-) consuming process—but that shouldn’t stop you from considering it! Save yourself some cash and many headaches with these tips:
- Choose the Property Wisely
- Don’t Be Afraid to Delegate Projects
- Expect the Unexpected
While the shows on HGTV may occasionally mention a tale of a flip gone wrong, these stories are much more common than you may think. There is no reason you can’t have a successful flip as long as you choose the property you work on carefully, and plan for unexpected costs.
A helpful thing to consider is also outsourcing some of the labor, especially if you’re not a licensed contractor—any money you save doing the work yourself will be lost in a learning curve while the house sits unable to be put on the market.
Single-family rentals and flipping may be popular options, but they’re not your only options! Commercial property rentals are often overlooked, but could be a great option for you and your portfolio. Consider these tips if you’re looking to delve into this section of real estate:
- It may be a slower start
- Spend more time understanding your market
- Understand how outside influences affect your investment
Commercial properties have a much lower liability and risk than residential properties, but it may take longer to find the perfect fit for your property. It’s good to do outside research on your own to determine whether or not a business would do well in your area to maximize your investment. Part of this research should be paying attention to trends both in your town and nationally to make sure the business you’re letting occupy the space will thrive in the local economy.
Ready to Take the Plunge?
If you’ve been thinking about diversifying your investment portfolio, or simply want to begin to get into real estate, let us help! As the local area and real estate experts, we’re happy to be by your side through every step of the process.