Familiarizing with the Types of Real Estate Investing

Most real estate newbies think that this type of market is only one. However, as you go deeper into this type of investment, your understanding becomes more specialized as well because in reality there are a number of real estate types. Each type of investment has a niche; in short, each of the investment has its own pitfalls and potentials. By knowing which type you are going to invest on, you will learn the proper skills on how to handle and sell the real estate well.

(1) Retail
If you have strong networks and connections to storefronts, strip malls and shopping malls, you can always specialize your investment in retail real estate. Earning in this type of real estate is really fast since the stores are generating rental fees and sales on a monthly basis. Partly, the landlord of the original retail store will get sales incentive from you for keeping the condition of the property in excellent condition.

(2) Industrial
If your stock market investment background is highly specialized in industrial types then go for this type of market. In fact, investing in this niche means you will have steady revenue fees and streams from specialized types of operation. Industrial real estate is mainly about long term agreements as other customers and buyers need long term service agreement like warehouse rental and etc.

(3) Commercial
In this type of niche, the only properties you are dealing with are skyscrapers and buildings. If you have lots of cash to invest in a building, the benefits are indeed long term because you will have leases for multi-years. According to experts, investing in this type of property is stable since cash flow is regular on a monthly basis plus you can be able to raise the rent when the market requires. Moreover, the renter cannot get out of the lease or contract easily because they are locked for several years based on the agreement.

(4)  Residential
This type of real estate niche covers different properties such as vacation homes, townhouses, apartments and houses. Leases for these types of properties are usually 12 months or so. You can also sell residential properties you have developed for a much bigger price.

(5) Mixed real estates
If you want to become expert all niches of real estate then you should undergo training under mixed real estates. In this way, you can be able to cross multi-niche with ease. However, covering mixed real estate is also demanding since there is the need for you to master many things at the same time.

Whether you are going to invest in residential, commercial, industrial, retail or mixed type of real estate, there is the need to always brush up when it comes to the basics. As an investor, it is your duty to know which niche of real estate do you belong the most. If you plan on extending to other niches in the future then make sure that you have mastered the first niche you have investment on.