• by The VRET Team

Creating Income Streams: Real Estate Investing in Oklahoma City

There has never been a better time to invest! Around the country, you’ll find that some homes increased by 32.6%, while others increased by 43%. 

Have you thought about investing in Oklahoma City but aren’t sure where to begin or if it’s right for you?

From financial security to planning for retirement, there are various benefits to creating income streams through real estate. Read this complete guide on how to get started and why you should want to invest today!

How Do I Get Started Investing in Real Estate?

If you’ve thought about turnkey real estate investing, then consider rental properties. Consider working with a real estate investment company in Oklahoma City if you’re just starting out.

Rental Properties

You might consider getting started on your own, but you might wind up making mistakes that experts can help you avoid. Another option for extra income is to do what’s called house hacking. 

This is where you rent out units in an apartment that you have an apartment in or rent out rooms in a house that you live in. Another possibility to think about is hiring a property manager.

Property managers will fix leaks, deal with problems from tenants, and more to make it truly turnkey. 

Consider investing and taking care of everything yourself to get your feet wet and better understand how things work. After that and once you’re OK with losing a portion of your profit, consider a property manager. If you do not live in the city you are investing in then a property manager could be essential. Any issues can be taken care of immediately so you retain your tenant.

Real Estate Investment Trusts

Another option for real estate opportunities in Oklahoma City includes real estate investment trusts. Companies own commercial real estate such as retail spaces, office buildings, hotels, etc. 

Real estate investment trusts tend to pay high dividends. Due to this, they’re popular in retirement. If you don’t need the regular income, you can reinvest the dividends. 

Partnerships

Partnerships are where you find a real estate investment deal. Your partner then needs to place a down payment and the loan for the house. 

You then lease it from your credit partner to buy it at a higher price. After this, you can sublease the property. Before your chance to buy the property expires, you could also get a new loan to buy the property yourself. 

Short-Term Vacation Rentals

If you’ve considered a website such as Airbnb, it’s a great way to rent out a property after you buy it. Hire a property manager such as a real estate company, and you don’t have to stress about running to fix anything. 

There are cons to short-term rentals such as having to decorate the property, and Airbnb getting a portion of your profit. 

Mobile Home Parks

Have an entire community by buying a mobile home park. There are regulations in place which don’t allow them in certain areas.

Commercial Real Estate

Consider buying commercial properties such as industrial, retail, restaurants, office, or other buildings. Residential buildings that have 5 or more units fall under this as well. 

If you’re thinking about investing in a residential building, then you’ll need a commercial instead of a residential loan. While the price of owning these types of properties might be intimidating, the prices scare off much of the competition. 

Co-Investing

You can buy in as a partial owner with different properties. Some real estate companies will allow you to do this. Find out how long they’ve been in business before you proceed.

Industrial Real Estate

Industrial real estate is one of the strongest options out there since you’ll be investing in distribution centers, warehouses, data centers, student housing, and more. Self-storage properties are another option. Consider these for stable income and portfolio diversification.

Online Platforms

There are online investment platforms that’ll allow you to invest money without owning the property. You and others will place money into homes, commercial real estate, shopping centers, and more. 

The benefit of this is that you don’t normally have to worry about a large investment requirement. Many of the solid opportunities are for accredited investors though.

These people are those who either have a net worth of $1 million or make over $200,000 per year. The net worth doesn’t include their primary home either. 

What Is Turnkey Real Estate Investing?

Right now is the best time to get started since about 90% of the world’s millionaires became rich thanks to investing in real estate. The average American moves about 12 times in their lifetime too!

This option is where you buy in the private real estate market and can rent it out right away. They come fully rehabbed as well. 

With little effort and time on your part, you can start making money quickly. There are potential cons such as natural disasters, maintenance problems, or tax hikes. 

While they might not be the least expensive option, they require one of the least amounts of overhead. When sales close, sometimes a renter might already be in the property. 

The rental income that you receive will help you in receiving a profit and paying off the costs of the home. Since buying property comes with different risks, it’s important to speak with a real estate investment specialist. 

Financing Turnkey Real Estate Investments

Pay attention to the interest rates that are available. When they’re at their lowest is the best time to invest in real estate. 

For those who have a great credit score, you can have a better chance of receiving lower rates. Reach out to different lenders in the area to see your best option. 

Keep in mind that not every bank offers each type of loan, they’ll vary. Speak with multiple lenders before you agree on one. 

Some loan options include: 

• 10/1 ARM
• 15-year fixed jumbo
• 5/1 ARM 
• 30-year fixed
• 15-year fixed
• 20-year fixed 
• 30-year Veterans Affairs 
• And more

Speak with your lender to see if you qualify for low-down payment loans such as an FHA or VA. VA loans are for those who have been or are currently in the military. These loans are for owner-occupant only but after one year in residency it can be turned into a rental.

The great part about VA loans is that you don’t have to place a down payment. They could offer competitive rates on top of this too. Think about a duplex or a 4 unit property. You can get home ownership rates, live in one unit and rent the rest. The profit can be used to offset your mortgage payment or even make a profit on top of that.

Even if you receive a loan now that’s not as low of a rate as you’d like, there could be an option to refinance. Refinancing allows you to change the rules of the mortgage in order to pay it off sooner. If you have a 30-year loan you could refinance and receive a 15-year loan. 

Know Your Ownership Agreement

Figure out which ownership works best for you and understand the benefits and cons of each. Before you agree to it understand the fine print, what it means, and what you’ll be responsible for. If you’ll be hiring a property manager, be certain that you’ll still be making a profit.

Is Oklahoma City a Good Place to Invest in Real Estate?

Yes! Around the country, prices continue to rise, but Oklahoma City is one of the countries best-kept secrets.

Homes in this area continue to be affordable. It’s a great opportunity for you to enter Oklahoma City real estate investing and make a profit.

Oklahoma City is also the largest city in the state. The market is more predictable as well since the prices of homes here don’t jump too high or low. 

The largest job providers in the area include natural resources, defense, and the government. Many government incentives are available to help the job market in the area. International trade sectors and financial services help to keep the housing market strong as well as the local economy. 

Fewer Homes Available

Once you score a deal on an investment property, the good news is that there are fewer homes available for people to buy. Many buyers are coming from other parts of this country including the East and West coasts. 

WalletHub also ranks Oklahoma City as one of the top cities in the country to rent. Since there are fewer homes available, that means that you can rent out the property for a profitable amount. 

Large Renters Market

While new homes are being built, the demand for homes in the area is high. The renting market stays strong thanks to job seekers and students coming to the area. Oklahoma City itself is landlord-friendly as well.

Steady Growth

As the population continues to rise, you’ll want to jump in and buy property soon. Rental rates continue to increase due to inflation. You also don’t have to worry about the risk of a hot market cooling either since it’s staying consistent. 

Even though the population continues to rise, the real estate market holds steady. Now is a good time to get in while the prices are affordable. 

The area also attracts business owners since it has a strong business environment. Oklahoma City has about 636,695 workers. The largest industries include attorneys, restaurants, and professional services. 

Getting Started With Oklahoma City Real Estate Investing

If you’re ready to get started with real estate investing, first think about your goals for the short and long term. Think about what you’re hoping the investment helps with whether that’s retiring early, paying for your child’s college, etc. 

Next, think about the type of ownership you’re interested in and how much money you’ll have to invest. If you want a more hands-off approach then you’ll want a property manager. 

Understand your financing options and what you qualify for in the area. The larger your down payment is, the smaller your mortgage will cost you each month.

There are asset-based and conventional loans among others. Asset-based is where you have a property as collateral (collateral is something that the bank would take if you default on your loan).

A conventional loan is the most common option. Private lenders and banks often sell home loans to government entities (Freddie Mac and Fannie Mae). 

Another name for this is a conforming loan. In order for them to do this, they have to meet lending guidelines. Borrowers will need to have a good employment history, a low debt-to-income ratio, and a good credit score. 

Hiring Real Estate Professionals

Whether or not you’re a pro, hiring a real estate professional who has been doing this for years can help. Speak with the real estate agent about the past experience they’ve had. Make sure that the entire team is professional and experienced, including advisors, mentors, or partners. 

Real estate professionals in the area can also guide you to be sure that you choose a property that’ll rent for higher amounts. Some homes will rent for higher amounts such as those near major highways or public transportation. 

If you live far away from the property, you’ll want to be sure that whoever is looking over your property will keep a close eye and keep you updated. They’ll let you know if something needs to be fixed professionally and how much it’ll cost. 

How You Can Start Creating Income Streams With Real Estate

After exploring this guide, you should have a better idea of how you can start creating income streams with real estate. Any real estate professional can tell you that it’s important to diversify your portfolio. 

Are you ready to get started in lucrative Oklahoma City but aren’t sure where to begin? Don’t try it yourself and risk making a rookie mistake. 

Contact us today! We’ve been in business since 1989 and use our process for ourselves as well since it works. We’ll help guide you in the process to get started and making as much money as possible in real estate investing.