Real Estate Investing 101: All About the Different Types of Properties

Real Estate Investing 101: All About the Different Types of Properties

Thirty-five percent of Americans say that, of all the types of investments they can make, they're most interested in property. You're here because you're one of them — but you have a few questions before you dive in.

Namely, you know that there are many different types of properties in which you can invest. But you want to know a little more about each one to find out which is the best type of property investment.

Here's a quick rundown of what every newbie investor should know.

What are the Different Types of Properties to Invest In?

You have so many choices when it comes to investing in property. But most physical pieces of property will fall into one of two categories: 

1. Residential real estate

2. Commercial real estate

Still, you might also consider investing in: 

  • Industrial property
  • Retail property
  • Mixed-use property, i.e. a building with both retail and residential space to be rented.

With all of these types of properties, there's plenty of potential for property management and financial gain. Let's break each option down further to find out what you stand to gain from the main categories.

1. Residential Real Estate 

You probably know a few of the types of properties that fall under the residential umbrella. Everything from a studio condo to a townhouse to a single-family home to a multi-unit apartment building counts as a residential property investment. 

 

Residential real estate tends to be the most popular investment, and it makes sense why: people are always going to need places to live, and not everyone is in the position to purchase a home themselves. You can also have your tenants sign a contract to keep them in-house for 12-month stretches, which means you don't have to worry about filling your property more than once a year. 

That's what makes this type of investment so attractive: there's likely always going to be interest. And, because real estate investments tend to increase in value over time, you can rest assured that any type of residential property will be a good thing to add to the portfolio.

2. Commercial Real Estate

Commercial real estate also makes for a great investment if you can afford it. It likely costs more upfront, but you get the benefit of higher rent payments from tenants. As a commercial real estate investor, you can also require tenants to sign longer leases, too, which means they'll stay for 18 months or longer at a time.

Still, it might be a bit tougher to dive into commercial real estate investment, especially for first-timers who don't have enough collateral to purchase a large commercial building. So, your best bet might be to start with residential property, then move into commercial once you have a portfolio big enough to back up your purchase. 

Invest in Real Estate — We'll Help With the Rest

These are the two major categories under which different types of properties for investment fall. If the idea of investing in residential real estate appeals to you, then we're here to help.

Once you have a property, we can help you manage it, making your stream of passive rental income even easier to attain. Click here to contact us today and learn more.

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