Why invest in Charlotte Real Estate?

"If I had a way of buying a couple hundred thousand single family homes... I would load up on them...I think that's probably as an attractive investment as you can make now."  Warren Buffett on CNBC in February 2012.


“Becoming a landlord has always been a well-worn path to millionaire status, with good reason: Not only does owning properties let you generate a second source of income, your tenants’ checks will help you build equity in your investment. The case for owning rental real estate is even more compelling now thanks to depressed prices, super-low interest rates, and the fact that the shortage of rental housing is the most acute it’s been in five years"  CNN Money Magazine

There are few people who would argue that investing in real estate in 2012 is a poor investment decision. In fact, hedge funds and private equity funds are buying thousands of homes across the United States. So why aren't more individuals buying homes or adding to their portfolios? We commonly here the following reasons:

1) Investment properties cost too much. 
In many parts of the country this may be true. The median sales price in Charlotte from July - September 2012 was $167,500. Good rental properties, however, can be found at less than half this price and some are available for $30,000 or less. In fact, Alarca recently placed a tenant-occupied home with an investor for $18,000!


I know it is hard for some of you to believe that you can purchase a home for so little and you must think that these are homes in terrible condition. This is simply not the case. The Charlotte market has a number of quality homes built in the 1960s and 1970s within just a few miles of Uptown Charlotte. These homes typically have 3 bedrooms, 1 bathroom and rent in the $650 -$750 per month range. A recent search showed 31 homes for sale for under $30,000 within four miles of Uptown Charlotte.

2) I don't have enough cash or I can't get financing. 
Admittedly, the best deals are available to cash buyers in this market. Many clients, however, overlook an easily accessible source for real estate financing - their IRA. It is relatively easy to set up your IRA to invest in real estate. In fact, your IRA can own the home outright, it can borrow money to buy the home, or it can lend money to other investors to make home purchases and renovations. Alarca is experienced in working with self-directed IRAs and we can help you with this process.

3) I don't know how to get started in Real Estate investing.
This is the most valid reason for not getting started and this is where partnering with Alarca can return the most value. Our team knows the Charlotte real estate market and we have vast experience in managing rentals in all price ranges. There are certain neighborhoods where we simply will not manage homes. There are certain homes we will not recommend for purchase (due to specific location, condition, etc). Most homes however, make good investment sense if they are purchased at the correct price. Our experienced team will help you analyze the property and set the price based on your investment objectives.

4) I don't know anything about Charlotte.
Many of our clients reside outside North Carolina and rely on our expertise to protect their investments and maximize their returns. In fact, a large percentage of our clients have come to Alarca after experiencing less than stellar results with other property management firms. Our processes and systems have been designed specifically for investors and provide 24/7 access to your information. You'll know what is happening with your investment, without having to be concerned with the everyday details of managing the home.

If you'd like to start your real estate portfolio or add to it, please visit http://www.alarca.com/investors.html or email info@alarca.comfor more information.