3 Investments Tips from Someone With Experience

The Type of Investments in Real Estate

People like you and me often tirelessly try to find means to make 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. A lot of people have the misconception that it is simple buying or selling real estate property. For those who want to really earn money in this field, they need to understand that there is a lot more to commercial real estate investment than simply buying and selling.

Perhaps the very first thing that everyone should understand is the different types of real estate investment. Basically, everyone should know that homes are not the only things that real estate is about. The misconception is likely from the fact that homes are the most common. Realtors have made plenty of money doing this. However there are others more. Some people choose to buy and sell buildings or spaces that are used for business operations like retail or restaurants. Simply put, this is what you can refer to commercial real estate investment. When it comes to real estate, not all people take this type of investment into consideration.

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 now you ask how real estate agents and business people realize returns from real property. As mentioned earlier, real estate investment is not a simple buy and sell equation. However, that is the main idea. Investors find a good time to buy the houses or commercial spaces and they also find a good time to sell it.

The same thing applies to land or commercial real estate investment.

Yet, one must note that commercial real estate investment is not always similar to residential or land investment. Money is largely made through lease with commercial property instead of the usual buy and sell that takes places in residential real estate. Meanwhile realizing a profit from a piece land may require a combination of the income earning activities for a commercial property and from residential property.

To summarize, investing in houses and selling them in future is a good starting point. Bear in mind that other than homes, there are other properties you can put your investment into. Buying a piece of commercial property is also a good idea as you can make money by collecting rent or lease from tenants on a monthly basis. Alternatively, you can go with land investment. now that you know that there are different forms of real estate investment, the choice is up to you after careful consideration and planning.