What are the Different Types of Real Estate Investment and How Does Each Type Earn You Money
People are always motivated to look for sources of income or how to make more money. These people then tend to look towards real estate especially commercial real estate investment. A commercial real estate investment looks like it is where the big bucks are but it is not really that simple. Many people mistakenly think that flipping houses or commercial real estate is a piece of cake. Those who want to venture into these industry must understand that it takes more than that.
Understanding the different kind of real estate investment is most probably the very first thing any person should comprehend. Basically, everyone should know that homes are not the only things that real estate is about. This idea probably comes from the fact that residential houses are very common are far as real investment types are concerned. Realtors have made plenty of money doing this. But there is more. On the other hand, you can also put your money in buildings that are meant for commercial purposes. Simply put, this is what you can refer to commercial real estate investment. When thinking about earing money through real estate, this should also be considered.
There is another type and that is called land investment, in which an investor puts his money on land instead of physical structures. Similar to commercial real estate investment, land investment is also often times overlooked.
So, how does one make money through real estate. Earlier, it was mentioned that making money from real estate is not simply or purely buying and selling real estate. Yet, that is the idea. What investors do is buy a house or a commercial property and sell it when the property has a higher value.
The same thing applies to land or commercial real estate investment.
However, there is a notable difference between residential and commercial real estate investment. Money is largely made through lease with commercial property instead of the usual buy and sell that takes places in residential real estate. Also, making money from land investment may call for a combination of strategies.
To summarize, investing in houses and selling them in future is a good starting point. Just remember that residential homes are not the only ones to make a profit on. You can also choose to buy a piece of a commercial property and lease it so you earn your profit on a monthly basis. Or you can choose to invest in land instead of homes or buildings. By now you can choose which type of real estate investment will work best for you.