Charlotte Investment Property Guide

If you are looking to buy a house or some other kind of Charlotte investment property, it is quite possible that you would be looking out for financing for the same too. After all, hardly anyone ever makes a full down payment on a house or a villa as it makes much more economic sense to take a loan or a mortgage. Some of the more traditional means of financing real estate include taking a loan from a bank or a financial institution. But times are changing and there are many people who are looking out for creative ways to finance their Charlotte investment property. 

The US government has taken some steps to ensure that the economy gets back on the track. Some of the measures that have been taken involve extending special loans to individuals at rates that are better than what is available in the market. These steps are what can be capitalized on by enterprising individuals who can take advantage of these steps taken by the government.

Creative financing is also possible by taking advantage of rent-to-own opportunities. In these kinds of deals, one is able to take a property on rent and pay higher rates with the understanding that the ownership of the property will be transferred in the name of the person after some definite period of time. It is quite imperative to look at various terms and conditions that govern such deals in order to avoid hassles with Charlotte investment property. 

There are so many creative financing options that you should look out for when investigating Charlotte investment property. Getting funds from a hard money lender is an option for those who have been denied funds from other sources. These money lenders get funds from individual investors and institutions too, in return for interest. 

Another form of creative financing is fixer upper properties, which involves properties that have certain defects or flaws. These properties are available at prices much lower than the going market rate due to these defects. The wise Charlotte property investor can pick up these properties cheap, get them renovated and then sell them off at a profit.

With the current recession and plummet in property values, many investments are looking better in a variety of cities in the US.  One thing to take note of is Charlotte investment property.  Better opportunities to invest are often found outside one’s local community, so looking to large metropolitan areas is often worthwhile to potential investors.  Should an investor purchase such a property located a few states, or even a country away, local management is something worth looking into as it can save you time and headaches for a nominal fee.

Carolinas Metro Realty

Quick and decisive action to tenants’ needs are greatly appreciated, and make for happier renters.  The bonus to the investor is that for fees associated with the management of a property, any headaches that occur with a Charlotte investment property are not directly the investor’s.  The main issue owners want answered is, “How much will management cost?”  The largest cost that will accrue over time is the monthly fee.  Carolinas Metro Realty charges  9% of monthly rent or a minimum of $100.  This fee can also be negotiated to a lower amount if multiple properties are being managed by the company.  To cover any damages or repairs a reserve of $300 is suggested, but the company can tailor this to your needs, age of properties, etc.  A security deposit equal to one month’s rent is held in escrow by the company.  (What’s nice about this company is they clearly stated that the security deposit is held until the tenant moves out, an inspection is done, and damages are paid for, if any.)

Out of town investors with Charlotte investment property might wish for Carolinas Metro Realty to find a potential tenant.  This service can be done for a fee of half the first month’s rent.  They also do full credit, criminal and eviction checks on all persons over the age of 18 that will be living in the home.  Should emergencies occur, and a tenant or owner need to contact the company processes are in place.  The company does have a 24 hour number that is monitored by the owner and manager, the message is then relayed to their phones and email addresses after business hours.  Also maintenance persons are on staff to handle most issues, but a dedicated list of contractors can respond to issues outside of the norm.

Carolinas Metro Realty specializes in both residential and commercial Charlotte investment property, and suggests on the residential front that renters prefer single family homes versus a townhouse or condo.  For more information contact Treva McCain at treva@carolinasmetro.com, or to contact the company please see their information below.

Carolinas Metro Realty
17232 Lancaster Hwy, Suite 108
Charlotte, NC 28277
Phone: 704-219-6322
Fax: 866-924-7352

Key Opportunity

The current property market in the US is more rewarding for long term investors. Although this does not mean that short term investors cannot earn a healthy profit.

While scouting for profitable Charlotte investment property, one should keep in mind the location. Places like Charlotte and Phoenix are always packed with tourists irrespective of the time of the year, resulting in high rental returns. Today the off-plan investments cost less as compared to completed projects of same size and at comparable locations. This has led to the popularization of the “flip” investment strategy. In this strategy the investors put their money in projects and sell off before their completion. Their profit is the rise in value of the property as it nears its completion. One should keep in mind to verify the re-assignment rules before finalizing the deal.  Real Estate brokers charge a fee at times for this facility which is a percentage of the purchase price.

Timeline

Real estate players have taken numerous steps to encourage investors. They have been offered friendly and flexible payment plans like an installment system. They are at times asked to pay at the time of the completion of the project with a small amount deposited when they enter the investment. In terms of the project life-cycle, the earlier you enter the deal the better it is. Earlier entry into Charlotte investment property comes with the privilege of first right to the units. This way the investor can choose the unit most likely to get a good price.

Risk Management

Investors should take steps to contain the risk of their investment. They should evaluate each opportunity on certain set parameters like appearance, location, facilities; and choose the one with maximum potential.

Another important angle to consider is the exit strategy. Investors should have a plan of action whereby they are ready for instantaneous bail-out in case they have to liquidate the investment at a short notice. This includes a back-up plan if market falls and you cannot get a buyer.

ROI

The returns for short term investors in current market have somewhat dwindled. The market is more aligned to the interests of long term investors. The investor latches on to profitable venture benefits both from capital appreciation and a steady flow of rental money. On top of that, the profit percentage can be increased by getting a discounted price at pre-release stages; thereby reducing the cost of Charlotte investment property considerably.