6 Alternative Investments for Real Estate Investors in North Carolina

Real estate is a popular investment choice for many people. While many people stick to single-family rental properties, there are several alternative investment options that can be just as lucrative. These investments are less common, which means you may find less competition when looking to add them to your portfolio. Keep reading as we discuss six alternative investments that real estate investors in North Carolina should consider.

1. Commercial Real Estate Options

Commercial real estate can be an excellent alternative investment for real estate investors.

Office Spaces: These can range from single-room offices to entire office buildings. They’re typically leased out to businesses for a set period.

Retail Spaces: These include storefronts in malls, shopping centers, or standalone buildings. They’re leased by retailers for selling goods and services.

Industrial Properties: These encompass warehouses, distribution centers, manufacturing facilities, and industrial parks. They’re used for storage, production, or distribution.

These properties generate more income than residential properties and can offer a higher return on investment over time. Many people opt to work with a partner with investing in such investments so they can secure a greater amount of financing and have more resources at their disposal. 

2. Investing in North Carolina Mobile Homes

Mobile homes are another alternative investment option for real estate investors. Mobile homes can be a great investment because they are relatively inexpensive to buy and maintain. In addition, they can be rented out for a steady stream of income.

Market Research: Understand the demand for mobile homes in your target area. Consider factors like population growth, job opportunities, and affordability.

Location: The location of mobile homes can significantly impact their value and demand. Look for areas with good amenities, infrastructure, and proximity to urban centers.

Condition: Assess the condition of the mobile homes you’re considering. Renovating older units can increase their value, but it’s essential to factor in the cost of repairs and upgrades.

Financing Options: Explore financing options available for mobile home investments. Some lenders specialize in financing mobile homes, but interest rates and terms may vary.

Mobile homes are popular with investors at any level of experience, however, they can be particularly popular with novice investors, looking to get their foot in the door. Some investors opt to take this one step further, buy investing in land for mobile home parks! This can be a highly lucrative investment, with little overhead. 

3. Private Lending

Private lending is a way for real estate investors to make money without actually owning any property. Private lending involves lending money to other real estate investors, who then use the money to finance their real estate deals. The investor earns a fixed interest rate on the loan and can potentially make a good amount of money in a short amount of time. As with any investment, this one can be risky, so it is important to speak to a lawyer and have all your ducks in a row before pursuing this option. 

4. Real Estate Investment Trusts (REITs)

REITs are a popular investment choice for many real estate investors. REITs are companies that own and operate income-generating real estate properties.

Here are some key characteristics and benefits of REITs:

  • Income Generation: REITs typically generate income through rental income from properties they own and operate. They are required by law to distribute a significant portion of their income to shareholders in the form of dividends, making them attractive for income-seeking investors.
  • Diversification: REITs offer investors exposure to a diversified portfolio of real estate assets across different sectors and geographic regions. This diversification can help reduce risk compared to owning individual properties directly.
  • Liquidity: Unlike owning physical real estate, investing in REITs provides liquidity, as shares can be bought and sold on public stock exchanges like other publicly traded securities.
  • Accessibility: REITs allow investors to participate in the real estate market with relatively small amounts of capital compared to purchasing properties outright. This accessibility makes them suitable for a wide range of investors, including those who may not have the resources to invest in physical properties.
  • Tax Advantages: REITs are pass-through entities, meaning they are not taxed at the corporate level if they distribute at least 90% of their taxable income to shareholders as dividends. Investors pay taxes on the dividends they receive, which are typically taxed at the investor’s ordinary income tax rate.

By investing in a REIT, investors can earn a share of the income generated by the properties in the REIT’s portfolio. You should always fully research any investment partner before parting with your hard bearded cash. 

5. AirBNB Rentals

AirBNB rentals are another alternative investment option for real estate investors. AirBNB rentals can be an excellent investment because they offer a higher return on investment than traditional long-term rentals. In addition, AirBNB rentals can be more flexible and easier to manage.

6. Land Development

Land development is another alternative investment option for real estate investors. Land development involves buying land and then developing it for commercial or residential use. This can be a lucrative investment option, but it requires a lot of research and due diligence.

At Tarheel Home Buyers, we understand that finding the right investment can be challenging. That’s why our professional real estate buyers are here to help. We can help you find the right investment that meets your financial goals and fits your budget. We have years of experience in the real estate industry and can offer valuable insights into the North Carolina market.

Real estate investors in North Carolina have several alternative investment options to consider. Whether it’s commercial real estate, mobile homes, private lending, REITs, AirBNB rentals, or land development, there is an investment option that can meet your needs. At Tarheel Home Buyers, we can help you find the right investment that fits your financial goals and budget. Contact us today to learn more about how we can help you! (984) 206-3532

gildedhomes

Jiffy Offer prioritizes its people, demonstrating care and confidence in providing flexible opportunities that align with your individual needs, abilities, and expertise.

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

What Do You Have To Lose? Get Started Now...

We buy houses in ANY CONDITION in North Carolina. There are no commissions or fees and no obligation whatsoever. Start below by giving us a bit of information about your property or call (984) 206-3532...
  • This field is for validation purposes and should be left unchanged.