Most people think of investing in real estate when they see images of a cute home or an apartment building. These are great ways to invest in a stable market that is resilient to adversity, and eventually matures. This is not the only way you can invest your money smartly. There are many other ways to invest your money wisely. Let us take a look at some common real estate investment types.
This information is provided for informational purposes only. Before you start any real estate transaction, make sure to consult with a licensed professional.
Real Estate Investment Trusts
Since their inception, REITs (Real Estate Investment Trusts), have been around for some time. These trusts are based on a simple idea: Companies that finance or own real estate properties in order to make profits for investors. The companies use investor money to continue to acquire and manage additional properties, while giving back any earnings. These can be in the form dividends or long-term appreciation for properties that have been sold.
Raw Land
Raw land, which is one of the most underutilized types of real estate for small investors, is exactly what it sounds like. It’s land that hasn’t been developed in any manner. Raw land is often very valuable and can appreciate quickly. Raw land appreciates, often quickly. Simple supply-demand relationships mean that this is one of the most profitable ways to make a profit in a matter of years. It is possible to either sell the parcel or break it up to increase your profits.
Mixed-Use and Commercial Real Estate
This type of investment is more common than single- or multi-family homes. Mixed-use and commercial real estate can take many forms.
- Only commercial buildings such as strip malls or traditional shops,
- Skyscrapers and buildings devoted to offices and companies
- Mixed-use buildings are usually built with shops on the ground level and living above.
- Boutique buildings in busy downtown areas
- Shops by the individual
Whatever your approach, commercial and mixed use buildings can be a great investment. They appreciate when the cost of living in the area they are located rises.
This post was written by a real estate expert from the Dotoli group. Josh Dotoli is Paramount Residences #1 Selling Realtor with nine sales in 2021, 3x more sales than any other Realtor selling in the building. The https://paramountresidences.net/ enjoys a prime beach area location. It is a Ft. Lauderdale oceanfront condo located across from the beach.