There is a lot of money being generated in the Asheville real estate market and many people would like to know how to best get involved. Here are several different ways to make money depending on the resources you have.
Probably the easiest and one of the slowest money makers in real estate investment is rental properties. These are excellent to have for long term financial goals as they increase in value over time and offer a steady income stream to supplement however else you are making money now. In our area, you can buy anything from a $100k used doublewide all the way up to a $2M historic home in Montford and count on a surplus of people wanting to rent your home for a primary dwelling, vacation rental or bed and breakfast. Obviously tenants and maintenance can cause difficulties, yet all-in-all this is very typically a profitable route.
This is a great way to make 5 figures in a short amount of time. You typically need to have a little more money available as you will need to not only close on a house, but you will also need to finance the renovations. I believe that most people in this game would agree that how much you make is strongly determined by how well you estimate the finished sale price, cost of renovations and of course how cheaply you can buy the home for.
Here is a very quick and easy way to make a good amount of money with very little effort. There are many large parcels currently available for sale around the asheville area, and a shortage of small buildable lots. Teamed up with someone who knows what to look for, you can very simply buy large lots for $10k per acre, subdivide them and sell them for $40k per acre. Financing is a little trickier here as you can expect to either pay cash or rely on personal or equity backed loans as raw land does not qualify for government backed mortgages with low rates.
If a 7 figure payoff is what you are looking for, I highly recommend developing raw land. There is a massive housing shortage in our area and builders are making a fortune putting down all sorts of homes. The most profitable thing you could likely do on a single project is take a large tract of usable land and turn it into a beautiful subdivision of move-in ready homes. This not for the faint of heart as a subdivision can take years depending on the size and expertise of your project manager, but the amount of profit earned on a single subdivision can quite quickly push into the millions.
All of the above is true exponentially in the commercial world. Yet if you have the resources to be involved in a commercial business, whether you are a landlord or developer, this is surely going to pay you back quite nicely.
If you are interested in putting your money to work in the Asheville Real Estate Market, give us a call at (828) 707-5642 to schedule a time to discuss what route is best for you.