Before the housing market crashed, it seemed like real estate investors could just buy a home, fix it up a little, then flip it for a nice profit. The demand for homes was high, and the amount of loans being given out was even higher. This cycle was enhanced by the large amount of people transitioning from renting to owning.
Today, things look vastly different.
Equifax Personal Finance Blog, real estate investor and RealtyJoin.com co-founder Andy Heller describes the new world of investing. His article, “
Prepare Your Real Estate Strategy Before You Buy,” explains how Carolina real estate investors must adapt to the new market in order to be profitable.
According to Heller, the market has basically gone in reverse from where it was before the collapse. Now, more and more people are moving away from homeownership and focusing on renting. In fact, Heller reports seeing projections of up to 5 million new renters within five years.
But what does this shift mean for investors? It means that becoming a landlord just became much more appealing. Of course, not everyone wants to think about midnight calls for a leaky roof or arguing with tenants who refuse to pay rent on time. Heller discusses a compromise in the form of a lease option, where in specified amount of time, the renter will have a chance to buy the home.
The advantages of a lease option stem from the responsibilities of upkeep and repairs that are placed on the renter. Plus, since renters know that the house may be theirs one day, they will generally take those responsibilities seriously.
Equifax Personal Finance Blog to learn more about what you can do to take advantage of low prices and invest in Carolina real estate.