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Understanding Home Ownership- The Beginning

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  1. Module 1: Understanding Mindset
    9 Lessons
    |
    1 Quiz
  2. Module 2: Understanding What you want your money to do for you?
    6 Lessons
    |
    1 Quiz
  3. Module 3: Understanding The Types of Real Estate Investments
    7 Lessons
    |
    1 Quiz
  4. Module 4: Understanding The Resources
    11 Lessons
    |
    1 Quiz
  5. Module 5: Understanding The Finance
    15 Lessons
    |
    1 Quiz
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Types Of Real Estate

  1. Residential Real Estate
  2. Commercial Real Estate
    • Real estate investment trusts
    • Crowd funding
    • Buying and managing a commercial property themselves
  3. Industrial Real Estate
  4. Land

Residential Real Estate

Residential includes properties like houses, townhouses, apartment, buildings, and vacation houses where an individual or family pays you to  live in the property. The duration of their stay is  based upon the lease agreement they sign with you.  In most cases, residential leases are on a twelve-month basis in the United States.

Commercial Real Estate

Commercial properties include office buildings and skyscrapers. You can choose to  construct a small building with individual  offices using your savings. And lease them out  to organizations and small entrepreneurs or  sole proprietors, who would pay you rent to  use the property.

Below are some of the common ways investors can participate or invest in commercial real estate:

  • Real estate investment trusts
  • Crowd funding
  • Buying and managing a commercial property themselves

REITs and crowd funding are more passive forms of CRE investment as they do not require the participating investor to manage or own the property themselves. For those who have more time or funds available, it may be an option to buy, manage, and own your own commercial property.

REIT

A real estate investment fund or REIT (pronounced “reet”) invests directly in real estate, typically in commercial buildings, but is bought and sold like stocks. An investor may already have REITs in a retirement fund or a stock account. These funds are rated like other stocks, and you can research them readily through TD Ameritrade, Charles Schwab, and other brokers.

Industrial Real Estate

Industrial real estate includes manufacturing buildings and property, as well as warehouses. The buildings can be used for research, production, storage, and distribution of goods. Some buildings that distribute goods are considered commercial real estate. The classification is important because the zoning, construction, and sales are handled differently.

Land

Land includes vacant land, working farms, and ranches. Vacant land includes farmland or ranches as well as land that doesn’t have any developed commercial or residential property. Sometimes referred to as raw land, this category of investment may also include natural resources such as mineral, water, or air rights.