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. Often times, these people turn to real estate as a good place to start most especially commercial real estate investment. The sad part is that behind the glamour of big returns, a lot of people do not really understand the true essence of commercial real estate investment. Many people mistakenly think that flipping houses or commercial real estate is a piece of cake. 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.
Getting familiar with the different forms of investing in real estate should be the very first thing any person must be aware of. Basically, everyone should know that homes are not the only things that real estate is about. One cannot really blame another person for that notion because after all homes are the most common type of real estate investment. Realtors have made plenty of money doing this. However there are others more. Alternatively, you can invest in spaces that are for business purposes. This kind of investment is called 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. Here, you can gain big returns but not everybody considers investing in this type of property.
So now the question is how one person really realizes a profit in real estate. As said earlier it is not just buy and sell. Yet, that is the idea. An investor would buy a property, commercial or residential, then sell it when the market conditions are in the selling favor.
The idea is still the same with 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. 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.
In short if you are looking for ways to earn money, buying or selling homes can be a good place to start. 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. Otherwise, land investment is another option. now that you know that there are different forms of real estate investment, the choice is up to you after careful consideration and planning.