Types of Real Estate Investments

It has been proved time and again that real estate is the best and smart form of investment. Investors feel more comfortable with real estate investing as it has the potential to bring huge money. If you are looking for real estate investment opportunities in order to earn immense wealth you have to make some smart upfront choices. You need to do some hard work, research market trends, read up and make smart decisions to acquire the best real estate investments. However, before embarking on your venture it is important that you are well aware and educated about the various types of real estate investments.

Real Estate Investment Types

The following are the various types of real estate investments available for investor. You can choose the one that fits your exact needs and requirements.

Residential Real Estate Investing

This is the most common and simple type of real estate investment wherein you invest your money in a residential property that is used for living purposes. Generally it comprises of houses, apartments or town houses where in a family pays to live in the property for a specified period of time based on an agreement.

Industrial Real Estate Investing

This type of investment consists of storage units, car wash garages and various other special purposes properties that generate cash from the people who utilize these facilities for a temporary period of time.

Commercial Real Estate Investing

As the name implies this type of investment comprises of office buildings, retail shops and warehouses that have the potential to generate substantial income. You can also erect a small building with individual offices and rent them out to get good income.

Retail Real Estate Investing

This involves investing in shopping complexes, retail outlets and malls wherein you are entitled to receive a rent for utilizing it. Besides this, you can also receive a significant percentage of the sales generated by the store rented out.

Mixed Use Real Estate Investment

This is a perfect combination of all the above discussed forms of real estate investment into a single venture. It offers a diversified approach with a minimum risk factor. Hence this is a perfect type of investment for those with significant assets and looking to diversify with the least risk.

Real Estate Investment Trusts

This is otherwise called as “real estate stock” that basically owns and manages a portfolio of real estate properties and mortgages. Anyone is free to buy shares in REIT that assures the benefits of a real estate ownership without the inherent headache of being the landlord. This type of investment promises liquidity, diversity and less financial risk.

Property Flipping

With the real estate prices soaring up, all you have to do is purchase a property and offer it for sale right away at a higher price. This assures instant profits. You can also incorporate some renovations in the property and put it up for sale to secure maximum profits.

Real estate can be a fairly safe investment, but as with any investment technique, the level of risk will depend largely on what you invest in and when. Do your research, and you should be able to come out ahead as long as the real estate doesn’t go through another slump.

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