Avenues of Real Estate Investing

The term real estate refers to real or physical property. The ownership of land and building infrastructures is involved.  In addition, any rights above or below land could all be considered as proprietorship of real estate.  Real estate investing has been considered to be a vital driver of most of the world’s largest economies including the United States.

There are four major types of real estate in the industry which are:

Residential

Includes everything from constructing houses, remodeling houses, and re-sale of homes for residential purposes.

The most popular type of houses in this sector are the single family homes.  Additionally, residential properties may also be multifamily, bungalows, luxury homes etc.

Industrial

Real estate in this category refers to buildings used for manufacturing purposes and other properties related to manufacturing e.g storage warehouses, go downs etc. Some buildings which are related to manufacturing such as offices that distribute goods are considered to be commercial real estate and therefore they are constructed differently.

Commercial

These include all types of property used for commercial purposes.  Commercial properties can range from malls, shopping centers, schools, hospitals, offices, hotels, and more.

Land brokerage Transactions

This includes all transactions involving land and could be an empty land.  Land rights such as mineral rights may also be involved.

WHY INVEST IN REAL ESTATE?

Investing in real estate is something that almost everyone engages in once you buy a home.  For an individual to purchase a house, you must have weighed the pros and cons of buying vs renting.  Real estate Investing is unlike other forms of investing such as stocks, bonds, ect.

Rather, it is an investment that you can actually see and touch.   The value is determined in a very different way than other forms of investing.

WAYS TO INVEST IN THE REAL ESTATE INDUSTRY

Flipping Houses

One of the more popular forms of real estate investing.  Flipping houses involves buying a house below market value, then fixing the repairs to sell at a profitable market price.  The most difficult aspect of flipping houses that most would agree on is estimating rehab costs accurately.

Investment Trusts

Another way of investing in real estate without being too involved is by investing in trusts. These are usually operated by investment firms.  Trusts are funds used in the investment of property in the real estate market.  The trusts invest in properties, mortgages etc and have a huge yield potentials.  Furthermore, you should do some research before investing in a particular real estate investing trust.

Forming a Partnership to invest in a Bigger Deal

Joining your finances with others in order to invest on a larger scale is also a very good way of earning bigger returns on your investment.

Real estate endeavors such as building commercial malls, hotels, residential estates and the like will require a large sum of capital.  Bigger deals generally require an investor to raise capital.  Funds are not readily available to most people so joining means forming a partnership could make it happen.

Wholesaling

Known as one of the most popular strategies for new investors to get involved with because it can be done with limited funds and experience.  Wholesaling consists of finding great deals through marketing and other strategies to get under contract.  Then assigning that contract to another buyer, usually another investor, for a fee.

Rental Property

Another way of earning returns when real estate investing, is to build or purchase rental properties.  Units are typically rented out to a tenant on a monthly basis. The need for residential spaces is always on the rise so this can also be a means of making money.

Investing In real estate can be very rewarding.  Last but not least, there are several other ways in which one can invest in real estate.  All that matters is you do your needed research before investing in a certain property.

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