The city’s old tagline of “Famously Hot” has begun to apply to Columbia, SC’s housing market since the spring of 2021. With a strong sellers’ housing market and a growing rental market, investing in real estate in Columbia could be a smart money move.
Real estate investing can be an effective way to grow recurring, long-term wealth. But it can be a little confusing to figure out how to jump in. Luckily, there are a few options for how to invest in real estate in Columbia, South Carolina, that you should consider.
Buy Real Estate Investment Trusts
Real estate investment trusts, or REITs, are an easy way to jump into real estate investing as a beginner. You don’t need to own any physical property, making them a unique investment opportunity.
REITs are similar to mutual funds in that they are companies that own commercial real estate, which creates an income stream. Most REITs pay high dividends that you can either cash out as regular income or reinvest to grow even more.
If you want to get started as a real estate investor through REITs, you’ll need to open a brokerage account. You can then choose what type of REIT you'd like to purchase. Many are traded on a public exchange, which is the best option for beginners.
REITs can be a good investment. However, there are many variables, and they can be complex. If you are starting out, you’ll want to do research on specific REITs before you invest in them.
Invest Through an Online Platform
Real estate developers often need to gather funds to finance their projects. Online platforms can help connect these developers with potential investors, like you. You can invest in these projects in order to receive monthly or quarterly distributions.
While this method of investing doesn’t require purchasing property, it is not a type of real estate investing for beginners. This is because they come with a significant amount of risk and are generally illiquid and speculative.
You also generally need to have a large amount of money to get started, which can make it prohibitive for many.
Invest in Rental Properties
A great way to get started with real estate investment in Columbia, SC, is to actually buy an investment property. Since about half of the area’s residents rent, the city is the perfect place to jump in.
While it may sound daunting at first, there is a lot of support you can use, and you may be able to make a worthwhile return. A common way is to purchase a property, then begin by setting it up to be rented. You can then find a tenant, which can provide recurring monthly income.
One of the benefits of this method is that you don’t need to do it by yourself. Hiring a property management company will give you access to a team that can find tenants, manage the property and rental process, and even manage day-to-day needs.
Get Started With Real Estate Investing in Columbia, SC
Real estate investing can be a little overwhelming to begin when you’re considering your various options. With a few real estate investing tips, you can make the best choices when it comes to how you’ll start investing in real estate.
Schedule a consultation with the HomeRiver Group Columbia to discuss how you can get started with your rental property.