Real estate investing is one of the most effective ways to build wealth, thanks largely to the ability to earn passive income. In fact, most of the world’s millionaires have real estate somewhere in their investment portfolios. If you’re considering getting into the world of real estate investing in North Carolina, knowing about your options allows you to choose the best option.
Being a landlord
The simplest way to become a real estate investor is to rent out a property (or properties) that you own for an extended period. For most beginner investors, this means purchasing a second property that you use to generate income. However, as a landlord, you must either perform repairs and maintenance yourself or hire someone to handle those tasks.
With the surge in popularity of Airbnb and other short-term rental companies, many people choose this method as their entry into the world of real estate investing. Obviously, this option becomes more viable if you live in a part of North Carolina that attracts a lot of tourists.
Aided by the popularity of TV shows that feature investors fixing up dilapidated homes and then selling them for a profit, house flipping is a very popular option among investors of all experience levels. This option is more expensive than others, as you must purchase a home, rehab it yourself or pay for renovations. This investment option largely depends on the real estate market in your area, as homes that sit on the market for an extended period of time become less valuable.
Real estate investment trusts, also referred to as REITs, allow investors to buy shares in a property while someone else manages it. Essentially, REIT investing is similar to investing in the stock market, but you invest in property instead of companies.
Real estate investment has the potential to be very lucrative. When you research your options, you can choose the one that best fits your financial goals and your abilities.