Everyone should be planning for their financial future. While you may have a good job with a 401k and a retirement plan, that doesn’t necessarily mean your bank account is reflecting stability. Along with managing your budget, it’s important to look into alternative investment strategies.

One of the most profitable choices for many people has been turning towards real estate. South Carolina has become an incredibly popular choice for those looking to relocate. In 2020, it was listed as the second most popular state for relocation, with around a 38% population increase.

The state is more affordable than most on the East Coast and has everything to offer, from beaches to mountains.

If you’re interested in becoming a real estate investor in South Carolina, take a look at what steps you can take to start increasing your financial stability.

• Get Your Real Estate License

While not everyone needs to become a licensed agent to become an investor, it can certainly give you a competitive edge. You’ll have greater access to new listings, will learn how to negotiate prices, and will have a better understanding of how the final contracts work.

It can also save you thousands of dollars on your final closing costs because you won’t have to pay for a real estate agent when looking for potential investment property. The best part is you can take a South Carolina real estate license course online at an affordable price.

• Expand Your Current Property

This is a great option for people who already own property and have more available space. Expanding your current property could mean building an ADU (accessory dwelling unit) which acts as a small, liveable home on the property.

This can be rented out monthly as a lease or can be a temporary rental home such as an Airbnb or Vrbo.

• Rent Out A Room In Your House

Are you an empty nester with more rooms in your house than you know what to do with? If you want to make passive income without having to take on any additional costs, you can simply rent out a room within your house. Again, this can be temporary or long-term. This also depends on what you are comfortable with as you’d be having someone else stay in your home.

•  Buy a Second Property to Rent

Because house prices are so competitive right now, many people are choosing to rent until the market slows down. Buying a second property as a rental is more of an initial financial investment, but can have a very big monthly cost.

Cash-flowing properties are the most lucrative. These are homes that are ready to be lived in. You can purchase them and immediately rent them out to a new tenant. 

• Flip a House

For people who are handy and don’t mind putting in a little labor, flipping a house can be a great way to make a large sum of cash as a real estate investor. The trick is that you’ll have to be financially stable enough to afford the mortgage.

Flipping a house takes time and you’ll have to work with the schedules of several contractors to get the job done. You also need to account for the time it takes to complete renovations, lists the house, and find a buyer.

• Crowdfunding and REITs

This is one of the easiest ways to get into real estate investing. Crowdfunding or buying shares of a REIT (real estate investment trust) make it easy to get started. Companies will list a house or property which outsiders can opt-in to invest.

As the building is rented or flipped, the investors will make a percentage of the profits. These can be found through individual companies or major stock exchanges.

Things to Note In Real Estate Investing

Before you run to the bank to apply for a loan or put money towards a REIT, there is a lot of preparation that should be done first.

• Decide what type of investment strategy is most suitable for your lifestyle and budget.
• Research and learn as much about the real estate market and industry as possible.
• Ensure you’re financially ready to make this type of investment by securing your capital.
• Learn about local and state real estate laws and regulations.

It’s possible to start investing in real estate as there are so many viable options depending on your specific needs. Make sure to do as much research as possible and don’t be afraid to ask questions.

Jump into online forums and talk with other investors who have done this before. Learn by reading books or taking online courses. Anyone can become a real estate agent with the right tools and resources at their disposal.