Build Your Nest Egg by Investing in Charlotte Real Estate
Investing in real estate is certainly not the ‘get-rich-quick scheme’ that it once was. If you’re watching the late night infomercials that claim to show you how to retire in months by trying their methods for investing in real estate, you will more than likely be incredibly disappointed. Unfortunately, the only ones who are getting rich are those making the infomercials!
However, you can build for your future by investing in the right Charlotte real estate in the right way. Here are five tips to give you some guidance on how to buy that second, third or even fourth piece of real estate as an investment:
- Shop smart. Look for homes or land in desirable neighborhoods or in up-and-coming neighborhoods. Many investors seek the least expensive properties and wind up with a cookie-cutter home that they can’t make a profit by flipping, nor can they find a decent tenant because of the location of the property.
- Keep your property. If you buy Charlotte real estate for the purpose of flipping it and you can’t turn it around quickly, rent it. Flipping sounds like a good plan but, without the proper guidance from a real estate professional, it could wind up costing thousands of dollars or more. Instead, you may wish to consider purchasing real estate with the intent of holding on to it.
- Buy rental property. Rental property can be a great way to add to your income and give you the means to do things you might not have been able to do on your current income. It is also a great way to set your children up for the future by giving them their first home. You don’t want to be a slumlord so be prepared to invest some time and money in the upkeep of your Charlotte real estate.
- Exchange properties without paying capital gains. You don’t have to fear the tax man if you decide you want to get rid of one property for another. By using a 1031 exchange, you can sell one property and buy another without paying taxes on the first one. This is not something you want to do as a “For Sale By Owner.” You need to use a real estate professional who is skilled in the 1031 exchange.
- Enjoy your free time. You don’t have to give up all your free time to manage your investment property. There are professional property management companies that can handle some or all of the day-to-day tasks for you. There is a fee for their services but, it may be well worth the cost. If you’d like other suggestions than property management for your rental, contact us; we have a plan that just may work for you!
For more information on buying investment properties or 1031 exchanges, phone or email me today.