The good thing about investing in real estate is that there are so many types to choose from which gives you the freedom to pick the one that suits your needs and budget. Whatever your purpose is in acquiring a property, check out these types of real estate investments:
Residential real estates are properties which include homes for sale napa, townhouses, apartment units, and rest houses where a family pays to live in the property. The length of stay depends on the agreement that you signed which is known as the lease agreement. Most residential leases are on a twelve-month basis in the United States.
The commercial real estate includes office buildings and skyscrapers. If you have enough savings and you own a big lot, you can construct a building with individual offices. Look for tenants who would lease the office spaces in exchange for rental payment. It is advisable to keep the length of the lease for only a year as it will give more flexibility to you as the owner to adjust your rate depending on the market condition.
The industrial real estate consists of properties with larger interior spaces such as warehouses, factories, or showrooms. You can buy a warehouse and have it leased to companies who need a place where they can store their items. Some industrial real estate properties can be used directly for business outlets such as car washes, indoor badminton or basketball courts, home improvement store, and factories.
Retail real estate investment is being used for shopping malls, strip malls or other retail outlets. There are two ways that you can earn from owning a retail property. First, to oblige the tenants to pay you a certain percentage of their sales and second, to receive the base rent. You can use their payment to pay the mortgage and to maintain the top-notch condition of the property.
Mixed-use real estate investments combine two types of real estate properties into a single purpose. For example, you can combine both residential and commercial properties into a single building. If your building has two floors, lease out the first floor as a commercial space for banks, retail stores, etc. The second floor can be used as residential rental spaces for single, working individuals.
If you don’t want to deal with the physical properties yourself, you can try the real estate investment trusts or REITs. With REITs, you are buying shares of a company who owns real estate properties and shares the income to its investors as dividends. Of course, you will be paying some taxes but overall, REITs can be a good investment if you buy at the right valuation and with sufficient margin of safety.