For novice entrepreneurs, getting into any business can be challenging. My friend too faced similar challenges when he was starting out Platinum Access Limousines. However, today, we are talking about real estate. Getting into real estate and breaking in to become a successful entrepreneur may seem to be a challenging endeavor. Real estate investing is done in many ways; from buying fix and flip houses, buy and hold investing, buying rental properties and purchasing the commercial real estate. When it comes to real estate investing, you might be probably wondering which type of real estate investment to go for.
There are many types of investment options when it comes to getting into real estate investing. Almost anyone looking forward to getting started can imagine buying a house, but there are many options to consider. However, why should you invest in a home when you can invest in a duplex? What about going to warehouses and office buildings? The choices are endless.
Let us look at the types of real estate investments you can make;
Residential Real Estate
When we talk about the residential real estate, the most common thing that comes to our minds is single-family homes. A detached single family home is a fancy way to get your foot off the ground when it comes to real estate investing. Residential real estate properties are used as residents for individuals and families. Many investors prefer to invest in residential real estate over other investments due to a higher potential for profits and a well-established value. The residential real estate can be divided into either single-family properties or multi-family properties.
Commercial Real Estate
Commercial real estate properties refer to all properties including plots of land that can be used for business and corporations. Investing in the commercial real estate is not for everyone, or faint-hearted. To get into commercial real estate investing, you need to have extensive real estate knowledge with deep analytical skills and decision making. The commercial real estate also requires a higher investment as compared to other types of properties. Buying commercial real estate is an investment option that most investors and companies have their eyes on, but based on the complexity of the procedures, most are pushed away.
Industrial Real Estate
The industrial real estate space is less crowded as compared to the other investment options. This type of investment ranges from warehouses, industries among others. Industrial real estate can be classified as an investment property that corporations can use for storage, distribution and or manufacturing. This investment type offers an appealing income for real estate investors if they choose to pursue it.
In our list, the land is the last investment type. All types of real estate investment begin with land. You need to know that land appreciates just as fast as the property. This is the main reason investors are driven to invest in land. What determines the value of land is the location and it’s intended future use. If you know the zoning laws in your neighborhood and country, then investing in land can be a very lucrative business.