Real Estate Investing 101
Real estate is real property consisting of the structures and land on it, and its accompanying natural resources like water, plants or minerals; immovable personal property of this kind; or an interest vested on the underlying object of exchange, the buildings or houses in general, immovable personal property not connected with a decedent’s estate, and real estate held for the use, benefit or the expectation of earning profits. Real estate brokers are licensed brokers who assist buyers and sellers in buying and selling residential, commercial, industrial, agricultural, and government real estate. They also serve as escrow agents, arranging for the sale of property, collecting the payments, and closing the deal. They make recommendations and coordinate with the parties involved in the real estate transaction.
Real estate investment refers to buying a building, land, or apartment that will create income for years to come. A good real estate investment will create income and profit, even after the initial purchase period. This can be accomplished by purchasing buildings or properties with perfect conditions at a low price. Properties that will attract local tenants and occupants, along with tourists or visitors from out of town, will always generate high returns.
Some examples of real estate investments are commercial buildings, which can include retail shops, office buildings, and other public structures such as school, churches, hospitals, and convention centers. The most common real estate type is single-family residences or condos, which consist of one dwelling unit and several attached buildings. Other real estate types are commercial real property, which consists of nonresidential buildings used as business centers or as storage spaces for finished products; manufactured homes, which consist of mobile homes permanently attached to a structure; vacant land, which may be developed into residential lots or office buildings; and railroads. Permanent fixtures such as houses, hotels, and apartment buildings are permanently attached to another property. All other real estate types can be bought and developed to create wealth for many generations to come.