Passive real estate investing is known to be a profitable and constantly growing business. In our world today, one can make a lot of money by venturing into the real estate market as either a real estate investor or a real estate agent, either being a good career option with perks and challenges notwithstanding. The real estate market has many good players, making it a competitive market. Nonetheless, don’t get discouraged instead focus on establishing a brand that stands out.
WHAT IS REAL ESTATE INVESTMENT?
The term real estate also refers to real estate which may include land and buildings. It can also be aerial/subterranean rights above and below ground, respectively with anything tangible and immovable resting therein. Examples are our houses, our skyscrapers, or even our underground septic tanks, it can also be land devoid of all these structures which we call unimproved land. Real estate investing is the buying, managing, renting, or selling of these properties with the aim of generating profit.
TYPES OF REAL ESTATE INVESTMENT
When you hear the phrase real estate investing, the first thing that comes to people’s mind is buying a property and renting it out or probably reselling it for a higher price, but the truth is that real estate investing is more than that, although it is one of many options.
There are different types of real estate investment which are categorically divided into two. We have physical real estate investment which includes land, residential and commercial properties.
Investing in physical construction brings higher profits and requires more money up front. While non-physical Tax Write off for Real Estate Agents that are other types of real estate investments that do not require real assets, including crowdfunding platforms and REITs (Real Estate Investment Trusts). They can also be grouped together to make a simple and effective investment. It is financially sound, allowing you to invest in more real estate with less money than you would like to invest in real estate. Below are five types of planting ideas to consider if you are considering getting into business:
COMMERCIAL REAL ESTATE INVESTMENT
This type of real estate involves investing in properties that are not for residential purposes, the investor owns and rents a place to a person or business who will use it. Commercial investment is a very lucrative business and generates more income than residential investment and has a lower maintenance risk although your property is dealing with the general public and not just a few people, investors tend to fear that someone gets hurt on the premises. Examples of commercial real estate investment may include hotels, warehouses, offices, retail stores, etc. Commercial real estate can further be grouped into industrial and commercial real estate investments, where the
RESIDENTIAL REAL ESTATE INVESTMENT
Residential real estate investment is the most popular among all the different types of real estate investment. That being said, there are many types of home investing that are unknown to most people. Examples include; Rental properties: buying or building a house with the intention of renting it out.
Total Re Vacation: This is similar to rental property, but the investor focuses primarily on tourism by buying a property in a popular and beautiful location known to tourists and renting it out to visitors.
Flipping/Microturning: In this type of investing, the investor buys a house that is selling below its value, especially a house that needs repairs, and sells it after fixing it. This type of residential real estate investment is quite risky because the investor tends to invest more money and there is no guarantee that he will be able to get all his money back. On the other hand, Microflip does not require such a risk because the investor quickly resells the purchased property without too many repairs.
Accessory Dwelling Units (ADU): This is where you rent out the extra space of your property either by turning it into a home for the tenant to generate passive income. It is generally less expensive than other types of investment.
RAW LAND
From the term Raw Land, the first thing that comes to mind island with nothing on it (i.e. no buildings or infrastructure). Unimproved land is considerably cheaper to invest in than improved land and tends to increase in value over time. Buying land and building it yourself will save you costs, but most land investors rent their land for a few years either to farmers for agricultural purposes or buy land that has a high potential for value for farmers. resell later. This type of investment is expensive because it requires huge capital but is easy to maintain.
REAL ESTATE TRUST INVESTMENT (REIT)
REITs are companies that own commercial real estates such as hotels, malls, hospitals or even offices). They allow you to invest in the properties managed by the company in the form of shares in the stock market, saving you the cost of owning a property. REITs are considered a way to generate passive income and some are publicly traded, which offers more liquidity than other forms of real estate investing. Investors receive dividends and if they run out of cash, they can trade their stock on the stock exchange.
REAL ESTATE INVESTMENT PLATFORM
In this method, investors come together as a group in order to invest in opportunities that they cannot fund individually on their own. Some of the crowdfunding investments are open to general investors, while others require investors with a certain net worth to invest. Unlike other investments which require a physical appearance, crowdfunding is done online and costs less than residential and commercial real estate which requires huge capital expenditure and maintenance.