Investing in Commercial & Residential Real Estate
Investing in a home, condo, or office building, or apartment complex can be extremely rewarding. “House flipping,” too, has become extremely popular, and there’s always serious profit potential in owning rental properties. But like any other investment, there is some risk involved when you purchase investment properties. The best way to mitigate your risk and maximize your return is to be well informed.
There are plenty of resources available about investing, and I’ve put together a few tips that can help, regardless if you’re planning to invest in residential or commercial property. Of course, you can always talk with our real estate experts about your plans — just give us a call at 919-612-9885.
How to Become an Investment Expert
Before you start searching for properties and working with a trusted local real estate team, it’s a good idea to start with the basics. You should know common investment terms, understand the Triangle area’s housing market (as well as smaller town or neighborhood markets), and research recommended lenders and real estate agents who specialize in investment properties. Here is a quick step-by-step guide to investing in your first property.
1. Know the Real Estate Lingo
To people who are unfamiliar with the terminology, investment terms like “capital” and “flipping” might as well be a foreign language. When you’re talking with a brokerage firm about your investment plans, you’ll need to understand at least the most common investment terms. Here are the key ones to know:
- Asset: An item of worth, which can be either tangible or intangible. Think of this as a (+).
- Liability: An item that carries a cost of some sort. This is the opposite of an asset. Think of this as a (-).
- Capital: The financing involved in an investment transaction. Capital can be any variation of assets.
- Flipping: When a property is purchased with the sole goal of selling it for a profit.
- Leverage: The “upper hand” in a transaction.
- Appreciation: An increase in value.
- Depreciation: A decrease in value. This is the opposite of appreciation.
2. Understand the Triangle Real Estate Market
If you’re planning to buy residential property, do you know which neighborhoods and price points offer the highest return on investment? If you’re planning to buy commercial property, do you know which locations are most valuable to prospective tenants? When investing in residential or commercial real estate, it’s crucial to know about current market conditions in the entire region, as well as the city or neighborhood in which you’re thinking of purchasing a property.
We are market experts. We can help you understand current market trends and factors that may affect your investment. If you want insight into today’s market, ask for the Neighborhood Sold Report for your area or contact us directly.
3. Have a Means of Purchasing the Property
Before you can purchase your ideal investment property — which can be anything from a condo to an office building — you’ll need the cash to do so. If you’re like many residents in the Raleigh-Durham area, you’re not sitting on huge piles of money, so you’ll most likely need a backer. That can be anything from a friend to a large financial institution.
4. Search for Your Ideal Property
The good news is you’ll find no shortage of sources for real estate investment: the Triangle Multiple Listing Service (TMLS), real estate agents (such as Gillooly & Associates Realty), wholesalers, public auction, or even private sales.
If you’re searching for residential property, we’ve created pre-defined searches for the most popular homes, from houses in golf course communities to properties in historic districts. If you’re searching for commercial property, we have pre-defined searches for those, too, including land and office buildings for sale.
5. Consider a Property Management Company
The amount of risk involved in real estate investment increases exponentially as your number of tenants increases. A great property management company will make you a lot of money and save you a lot of stress.
Ready to Begin Investing?
Steve Gillooly and his team specialize in a wide variety of investment properties, from short sales and foreclosures to land development site selection and commercial real estate. If you are planning to invest in real estate in the Triangle, we can help you find your ideal property and maximize your return. Fill out the form below to get started.