Real estate investing basically involves the acquisition, ownership, control, rental or sale of real estate as a portion of one's overall real estate investment plan. It also includes the buying and selling of land or other real assets. Real estate investment can either be residential real estate investment or commercial real estate investment. The two kinds of real estate investment are distinguished by the different uses and strategies used in acquiring real estate properties.
Residential real estate investment is the process of purchasing a single-family home or a condominium building, or a piece of land on which to develop a residential real estate investment plan. Commercial real estate investment is the process of purchasing real estate to create a business, such as apartment buildings, office buildings, shopping centers, or hotels, the primary use of which is to make an income. In order to make a profit from such real estate investments, a part of the total purchase price has to be invested in the tangible assets underlying the investment plan.
When making real estate investments, there are several ways to buy or invest in real estate. One such way is through the purchase of a single-family residence or an apartment building, a piece of property that is owned by a person and is not used commercially. Such assets can include residential homes, condominiums, town houses, and cooperative communities. Equity can also be increased by combining certain tangible assets with mortgages or by obtaining a mortgage on any existing asset.
Real estate investment can also be made in the business sector, through acquisitions of small businesses or even whole businesses. Small businesses are those with marketable products and services. Acquiring these businesses requires the purchase of certain assets. These could be specific physical properties, such as real estate properties, or intangibles, such as computer software, customer lists, and patents. For businesses that require significant funding, borrowing funds from friends and relatives may also be possible. Take a look at these House Buyers.
In addition to purchasing real estate investments, an investor can also hire a broker or a mortgage company to conduct the transaction for him. Although this method can take longer to become profitable, it is more reliable for long term investments. A broker does not represent only the seller, but also the buyer; thus, an investor can ensure a higher chance of earning a higher return by dealing with a reputable broker. On the other hand, mortgage companies allow an investor to invest directly in a property, eliminating the need for a broker or agency. However, these institutions usually have a longer waiting period for investments.
The total length of time for real estate investment trusts (reits) to achieve a high level of return varies greatly. Some investors see returns being realized in five years, while others see returns in ten. There are also investors who see returns as early as twenty years, which would be the case for an investor who purchases fixed income securities. To get the best rates on these types of investments, a potential investor should research various programs offered by various brokers and companies. By doing so, an investor can choose the one that offers the best rates and terms. Get here House Buyers.