Owning real estate has long been associated with the American Dream. The housing crash of the early 2000s decimated that dream and the value of the property for millions of people around the country. That said, there has been a resurgence in the housing market, particularly in North Carolina. You might be thinking of becoming a real estate investor due to this. When you want to purchase property in NC like a pro, you’ll want to keep some of these tips in mind.
Scout out the types of loans and lenders that work for your purchase.
As a borrower, one of the major decisions you’ll have to make is what type of loan you’re going to use. Picking the right lender requires more than just selecting the first person to hand you money. A popular pick for financing options is a hard money lender. Often a private lender, they have the flexibility to craft options for your needs beyond a traditional loan. For house flippers, they have a financing option for fix and flip loans. There are options for a rental property as well. Rehab and refinance loans can increase equity in your rental property through the repair value of the renovation. A hard money loan can have appeal to private investors in ways a conventional bank loan can’t match. You’ll also be able to assess if a lower interest rate or shorter loan term is better for you.
Research what’s sold and is for sale in the area you want to invest in.
Another step you’ll have to narrow down is the location of your purchase. The diverse landscape of North Carolina could have you exploring acreage in the mountains in Asheville, new construction in Raleigh, or making a down payment in the centrally located city of Greensboro. One thing for sure is that land for sale in North Carolina will be different depending on which part of the state you’re looking in. You’ll want to also take into consideration whether this will be a commercial property, recreational land, investment property, or even a vacant lot. The type of property can impact which markets you’ll want to research. It can even narrow down the neighborhood you’ll want to explore. Evaluating commercial real estate and the average purchase price for your potential investment will help to determine the amount of capital you’ll need to move on a property.
Perform a thorough evaluation of all your assets and your credit score.
Once you have an idea of the loan you want and the type of real estate investing you’ll be doing, it’s time to take a hard look at your personal finances. This includes a litany of things. A close look at the money you have on hand as well as your assets. The amount of money you intend to use as a down payment and to cover closing costs, for example. A debt-to-income ratio should also be assessed. A traditional lender will check their borrower’s credit, so keep informed on your credit score as well. If you’d like to avoid a look into your credit history, it’s better to opt for a hard money loan.
Don’t hesitate once you have all your planning in order.
Any realtor and will tell you that the market is hot right now. Low-interest rates mixed with high proper values have created a market that seems to turn around in a matter of days. Many times, traditional financing loses out to cash buyers or a hard money loan. Once you have all your personal information in line, don’t hesitate to begin an application process, contact your mortgage broker, and do anything to just get the process started. You don’t want to miss out on your next plot of land because you made this process the last resort rather than a priority.