Investment real estate is one of the oldest ways to grow your money. Long before the days of Wall Street and our modern stock market people have always invested in real estate. It is one way to invest that all serious investors should look into. This blog will go into the five types of investment real estate so that you can make the best choice for investing your money.
Commercial real estate includes any real estate that will be used for an organization, most often that means office buildings and spaces. The great thing about this is most leases for new organizations are typically long term, which often yields renewals for years to come. Unfortunately, that also leaves the investor susceptible to receiving under market value for the lease, so be mindful of market rates for your area.
Residential real estate includes houses and apartment buildings as well as complexes for families, students, and other people looking for temporary housing solutions. Because most leasing agreements run for 12 months, there is a much higher turnover rate for residential properties, leading to increased rates due to ever-changing market values and more profit. One thing to consider with residential property is while the turnover rate is higher, these units will most likely need more maintenance work done – not only while the tenant resides in the unit, but also to get it ready for the next tenant. Greenville, NC offers the draw of over 29,000 students each year making it less challenging to rent or lease your property.
If you’re looking to take that next step up from commercial real estate investing, then retail investing is for you. Retail Real Estate investors own locations such as strip malls and shopping centers. There is a massive potential for growth in this area of real estate investment as new restaurants, hair salons, and clothing stores open every day.
These properties are more challenging to come by, but as with retail, there is a large potential for growth. Industrial Real Estate includes locations such as factories, warehouses and storage units.
Not sure exactly what you’re going to do with the space, but you know it could be used for many functions at once it is classified as mixed-use. A great example of this is a building that has both residential and retail space. This has become a common theme in areas experiencing revitalization.
The easiest way to start investing in real estate is to begin checking with local realtors about what is on the market. Often realtors can save you a lot of time and money in making your investment plans come to life. For example, Eastern Trust Real Estate Company, LLC has an entire section on their website devoted to how they can help you achieve your goals in real estate.