Real estate investor to be? You’re at the right place! Our website is committed to providing all sorts of information for newcomers into the world of real estate. Nevermind what job you shall do. If it’s somehow connected to investing in real estate, you’ll be more than happy to follow our articles. In the beginning, before you even become an investor, you’ll need some knowledge. Perhaps the first thing to learn is what types of real estate investments there are. Because you’ll want to know your options. Besides, learning about the types of real estate, you could find out what type you like the most. So you could commit to learning about it a lot more. For start, let’s introduce you to the world of real estate giving you the basics about real estate investment types.
What types of real estate investments opportunities are there
The first thing you want to know when digging real estate information is what are the best real estate investments opportunities. To get there, you need to learn quite a few things. One of them certainly is what types of real estate investments are there actually. Given that, no matter what kind of investments in real estate world you like the most, you’ll certainly find the ‘gold mine’. But it takes an effort, it takes knowledge and it takes, above all, love and commitment. There’s no successful real estate investor who doesn’t love his/her job.
Doing what you love is actually what brings your skills to another level. If you don’t love the world of real estate, then find something else to do. It’s a friendly advice. Doing something just for the money works only for a small number of people, and I recommend it to nobody. Sooner or later you’re gonna hate your job, and you won’t be able to change your career. Then you’ll hate yourself. Nobody wants that. Still, the world of real estate is what I, and probably the most of you reading this article, love. Therefore, we’re ready to put an effort in getting the knowledge for being excellent in real estate investing! Hence, we’ll proceed with:
Types of real estate investments to pick from:
- Residential real estate investments: Type of real estate where you invest in property someone will pay you to live in.
- Industrial real estate investments: Every property type you’d sell or lend to a company from some industry.
- Commercial real estate investments: Kind of real estate investment opportunities that consists of offices or buildings mostly.
- Real estate investment trusts: Investment in shares of real estate company owning a property.
- Mixed real estate investments: The combination of above-mentioned types of real estate investments.
Residential real estate investments
One of the most popular types of real estate investments. This kind of real estate consists of buildings to rent or sell to people looking for housing. Therefore, there are two forms how you can earn from residential real estate investment. The first one is a constant monthly income in terms of a rent. You’re securing that tenants would pay a rent by signing a rental agreement with them. Rental real estate has been very attractive to investors for decades. The second way of earning from this type or property investment is to buy, renovate and sell it at a higher price. Also to the people searching for a home.
Industrial real estate investments
It consists of everything you could rent to any company from any industry. For example, the industrial property investments are: industrial storages, warehouses, factories etc. Everything that comes to your mind, and can be used in some industry, can be named as an industrial real estate investment opportunity. Making this type of real estate investment, you’re also able to rent it or sell it. Hence you choose to seek for a capital gain or to have a monthly income in terms of a rent. Whatever you choose, read about industrial real estate and be constantly updated with the news. You never know when a good industrial real estate investment opportunity will appear.
Commercial real estate investments
One of the types of real estate investments not being meant for any specific use. These are, i.e., buildings with offices for all types of businesses to rent. What is commonly used for commercial property investment is a multi-years rental agreement. Being that small companies base their jobs in these offices, so they want to have a security of a location. It’s also a good thing for you, the investors, having that this means a certain income for years which leads to a stability in a cash flow. That makes you able to seek for some more real estate investments opportunities. Nevertheless, although these types of real estate investments are primarily meant for rent, if the market heats up, you could easily make a capital gain by selling it at a good price!
Real estate investment trusts
You don’t actually invest in real estate of some kind here. You invest in shares of a corporation owning real estate properties. This kind of real estate investments opportunities isn’t that attractive to those of you eager to earn a lot of money by finding a great property investment chance. Yet, it offers certainty of making money out of real estate, being that those corporations have a lot more instruments to find the best real estate investments opportunities on the real estate market. So, therefore, they will almost always make a secure investment.
Nobody says you must invest all of your money here. But our recommendation is to make it at least some part of your portfolio. Have at least some certainty in your investments. How do you earn from real estate investment trusts (REITs), you might ask. Well, the idea is to invest money, keep it invested here, and earn dividends. Although your money is not available for your further investments, you have a steady monthly income.
Mixed real estate investments
As you can conclude from the name, this type of real estate investments opportunities consists of properties meant for multiple uses. For example, it could be a building with the combination of restaurant, offices, apartments and conference hall. This is only an example, there are numerous variations of purposes your mixed real estate could serve for.