The real estate market fluctuates now more than ever, especially in hot spots like Charlotte, NC. This city saw bidding go up to 100% over the asking price as people fight over the same properties. Then a few months later home sales dropped 20%. This can be daunting for new investors.
However, if you are thinking about investing it doesn't have to be this difficult. In fact, many of the reasons for staying out of the market are unjustified.
Discover four real estate investing myths that might have you hesitate about your investment strategy below.
1. You Need a lot of Money to Invest in Real Estate
A real estate investment is different from homeownership. When you buy a home to live in you most likely plan to stay there for a long time. Therefore, you aren't looking to sell it for profit or rent it as a source of income.
Investing in a property, however, means that you don't have to worry about paying off your mortgage with your life savings or need a large sum of money upfront. Your goal is to make a profit not invest all your money in a property. To find out how much money you'll need to invest in real estate in North Carolina, click here.
2. Flipping a House is Always Profitable
One of the biggest real estate investing myths is that it is easy to make money by flipping a house. It takes a lot of work and time to transform a home from a fixer-upper to one that will sell for more than you bought it.
Flipping profits have also declined over the past 5 years. In 2017, the average ROI was 51.4% and in 2022 the average is now 25.8%
3. Timing Relies on the Housing Market
The beginning of this real estate investing guide showed you how volatile the housing market can be. So, relying on its ups and downs to know when to buy or sell is not efficient.
Instead, follow your own circumstances to know when to make your move in the housing market. Be sure to have your finances in order, personal issues resolved, your living situation secured, and market knowledge intact then make your investment decision.
4. It is a Challenge to Be a Landlord
There are many reasons to invest in a rental property, but if you are afraid of being a landlord then you might avoid it altogether. Luckily, there are many options to help you with managing your real estate investment.
One of the best real estate investing tips is to outsource your landlord tasks. A property management company can take most of the responsibility out of your hands. For instance, they can help with maintaining the property, screening tenants, and even collecting rent checks. You may observe how some landlords are wasting their weekends by visiting here. https://carolinaspropertymanagement.com/blog/ways-landlords-are-wasting-their-weekends
Get Started with Real Estate Investing
If you are new to real estate investing, these tips are just the beginning of your success. You also need professional help to get started on the right track. Luckily, property management companies also provide consultation and guidance.
Contact Carolina Property Management today to find a new rental property or get help with your currency investments.