If you are considering investing in real estate, understanding the types of available real estate and the kind of investments you can make is instrumental in ensuring that your investments are financially sound and right for you.
The type of real estate investment you should make is not only dependent on your finances and the location of the property, but also on whether or not you are seeking to attain viable income from the investment. All real estate investments fall under one of two categories : non-income-producing investments and income-producing investments. Non-income-producing investments include houses and vacation homes, while income-producing investments include commercial property such as retail, office, and industrial property.
Real estate investments can be further subdivided into several different types:
1. Commercial real estate investment – An income-producing investment, commercial real estate refers to properties such as office buildings and industrial parks. Those interested in commercial real estate investment can purchase or construct a building and lease the offices out to businesses.
2. Residential real estate investment – This type of investment refers to houses, apartment buildings, condos, and vacation properties. Individuals or families pay the owners of these properties to live in them.
3. Industrial real estate investment – An industrial real estate investment refers to a facility or building which customers use for a special purpose. A storage unit is one example of industrial real estate.
4. Retail real estate investment – Investing in shopping malls and retail stores is referred to as retail real estate investment. The owner of retail real estate may receive a percentage of their tenants’ sales or profits in addition to rent.
5. Mixed-use real estate investment – This type of investment refers to properties that combine multiple types of real estate. For example, a pizza restaurant located underneath three apartments is one example of a mixed-use building, since the property was developed for both commercial and residential uses.
6. Real estate investment trusts (REIT) – If an individual would like to avoid handling properties by themselves, he or she has the option of investing through a real estate investment trust. A REIT investment is the process of purchasing shares of a company that owns real estate and administers its income as dividends.
Contact a Joliet Real Estate Lawyer
Whether you are making a real estate investment, purchasing your first home, or are interested in leasing commercial properties, Attorney Ann Zaremba can help you. From negotiations to developing a contract, our Will County real estate attorney can guide you throughout the process of all real estate transactions. Contact the Law Office of Jack L. Zaremba by calling 815-740-4025.