Types of Real Estate Investing
Are you interested in real estate investing? Do you have questions about where and how to invest? While there are a variety of questions to address, those associated with the types of real estate investing are among the most important.
It doesn’t matter if you’re making your first investment or have some experience in the real estate industry, it’s critical to understand the opportunities available to you.
Here are the five different types of real estate investing:
- Commercial real estate: There are many types of commercial real estate, such as office buildings, retail space, restaurants, gas stations, hotels, and strip malls (and that’s just the start). Most people who invest in commercial real estate do so with the idea of renting out the property as a means of generating monthly income.
- Residential real estate: Residential real estate is any single or multi-family property with less than five separate dwelling spaces. For example, single-family homes, duplexes, triplexes, and quad-plexes all fit into this category. Some investors purchase residential real estate with the idea of renting it out, while others fix the property up and then resell it for a profit.
- Industrial real estate: This includes any building used for production, manufacturing, storage, distribution, or research and development. These properties are not as readily available as commercial and residential real estate, but they’re an important part of the nation’s economy. Subsequently, industrial real estate investment opportunities will always exist.
- Mixed-use real estate: As the name suggests, mixed-use real estate is a combination of residential and commercial properties. This is one of the better types of investments, as there’s greater opportunity for success. For example, this could include a building with retail stores on the street level and apartments above it.
- Undeveloped land: It doesn’t always make sense to buy undeveloped land just to sit on it, but the return on your investment can be substantial should there be strong interest in building in the area.
Conclusion
As a real estate investor, it’s critical to understand the many types of investments. This allows you to make a final decision as to which one is best, both in regard to your financial situation and goals.
About TCG Florida
At Trinity Commercial Group, Inc., our multi-disciplined team of professionals is widely respected for providing excellent leadership in a variety of commercial real estate services for landlords and tenants in Southwest Florida and Fort Lauderdale, Florida.