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The different types of real estate investments

There are a number of different types of real estate investments just as there are a number of different types of real estate investors. Some investors purchase land which they know is going to go up in value because of some influence that will happen in the short term, such as the construction of a retail mall. Other investors buy residential properties, fix them up and flip them quickly while other investors buy for the long haul, banking on a gradual appreciation of the value of the property which also generates rental income. All of these various investments require skill and cunning, and keeping up on latest real estate investor news in an effort to be ahead of the curve.

From an investment point view, there are a number of possibilities for the savvy investor:

Residential property: Residential properties are single family homes, apartments, town houses, etc, wherever people live.  The people who occupy these properties pay rent for the privilege.  The length of stay and the conditions that they agree to during their stay are all included in the lease that is signed by both the owner or the owner’s representative and the tenant.

Commercial property: Commercial property consists of office buildings.  These buildings consist of multiple units which are rented out to a variety of tenants.  In some instances the building is dedicated to a single profession such as doctors and dentists.

Industrial property: Industrial properties for the investor usually are storage units, car washes and real estate that somehow generate income from customers that use it on a temporary basis.  These investments often are ideal for generating additional revenue such as coin operated vending machines that dispense cold or hot beverages or even a vacuum cleaner at the car wash.

Retail property: These properties consist of such things as strip malls, storefronts, shopping centers and any other real estate that is leased out to tenants who sell goods and services to the public.  As well as receiving rent for the unit, the landlord often also receives a percentage of the sales made in the facility.

Whatever type of real estate investment is made, it takes a keen awareness on behalf of the investor to know when and where to buy as well as sell; a lot of this insight comes from keeping up on real estate investor news.