If you have the idea to start investing in real estate this post is just for you. As a beginner, you don’t just buy or invest in real estate as there are types of real estate you can venture into and you have to be sure which one best suit you but also depending on your real estate budget.
There are categories of homes, land, and commercial properties as well as divisions in the types of real estate that are available. But we will be looking at that in another post from this blog.
If you want to make a different type of investment in something that you know you can make a profit out of, then knowing the different types of real estate investments can help you.
Types of Real Estate Investment
Real estate investments begin with three major types; residential real estate, commercial real estate and raw land.
Each of these real estate investments has specific guidelines set with them which will make a difference in the functions of real estate.
Residential Real Estate Investment
Residential estate is virtually an area that people stay or live.
For residential real state investment, it can be in form of a single rental family, double flats, 3 bedrooms flat, fix, and flip vacation rental properties.
With this, residential real estate investors make money by collecting rent from tenants.
Commercial Real Estate Investment
Commercial real estate is a space that is rented or leased by business entity. It can be an office building rented by single business or company. Malls with several unique stuffs are example of commercial real estate.
For commercial real estate, it can be form of office building in a commercial hub city built by the road side, Industrial building, and warehouse for FMCGs and companies or individual
Commercial real estate investors make money collecting leased space from business owners or companies. What you should know from this it that commercial properties tend to have longer leases and command more rent that residential properties. It’s a greater and steady income for property owner.
Raw land Real Estate Investment
While this is one of the most common ones people lay their hands to do, you can be considering in planning starting on land for commercial development or purpose, land for residential purpose, or land for farming purpose.
Raw land can come is sizes. Hectares, Acres and Plots. You can real land sizes here
Buying land to develop in a residential environment involves fair amount to begin and why I have written this it’s because of it flexible payment plans available for options to start.
For raw land real estate investors can make money doing land banking-Buy, keep and resell later! For a higher profits
Depending on the kind of real estate investment you are looking at my advice is this, do your due diligence and study the real estate market and stick to the one which best benefits you and you will have a steady and productive result.