Real estate is a powerful investment option, one which can provide financial stability, plenty of growth opportunities, and a risk level that you feel comfortable with. If you’re just starting out on your journey as a real estate investor, though, it can be difficult to wrap your head around the options and strategies available.
The Different Types of Real Estate
Real estate is property that consists of land or buildings and is considered real property. Real property is something you own that is attached to a piece of land.
There are four types of real estate:
- Residential- Comprised of everything from single-family homes to rental homes.
- Commercial- Property that is used with the intent of generating income, like an office building or general
- Industrial- Like commercial properties, industrial land is used to generate income, but through means like mines, farms, and factories.
- Land- Undeveloped land can be kept vacant for future development, depending on how it’s zoned. Otherwise, it can be used for hunting, grazing, timber, or other uses.
Purchase A Residential Home
Residential homes, as opposed to commercial real estate, are typically more affordable and less complex in terms of legal procedures. For those who invest in residential properties, rental income may come from tenants who occupy the home. Alternatively, homeowners can also resell the property at some point down the line and potentially benefit from an increase in value.
With such accessible and successful investment opportunities, it’s no surprise that residential real estate continues to draw attention from various individuals.
You Can Flip Properties
Investing in older homes and flipping them for a profit can be a great way to make some extra money. If you have the funds, the time, and the resources available to undertake such a project, it can yield excellent returns on your investment. The process of renovating an older home can be complex and often requires experienced labor or professionals in various fields. It also requires research into local housing values and trends before jumping into such an endeavor.
Take Advantage of Hunting Land
Good hunting land is a coveted and great investment that can be passed down through generations. This land appreciates in value due to its high demand. Be sure to know the price of land per acre, how the land is zoned, and if there are signs of game. In addition to cost and location, you will need to determine what rights there are on the property, such as easement rights and mineral rights.