What are the Different Types of Real Estate Investments?

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If you’ve been thinking about getting into real estate investment, you might think it’s simply: buy a house and sit on it. But that’s not the case!

There are many, many types of real estate investments to choose from and they each come with their own benefits and risks. If you take a real estate investing course (and if you’re thinking of getting into real estate investment, then you absolutely should), you can learn more about each of these types of real estate, but for now, we can give you a quick rundown of some of them.

First you have your residential real estate. This is not just homes. Houses are obviously a large part of residential real estate, to be sure. Beyond houses, though, you have things like apartments and condos.

Residential real estate investments are your more common investments and a good real estate investment course can teach you all about them.

Another type of real estate investment is commercial real estate.

When we talk about commercial real estate, we’re talking about buildings used for commercial purposes, which includes places like office buildings or retail spaces. It also includes places like warehouses. Commercial real estate has its shares of benefits and pitfalls, so taking a real estate course online can be hugely beneficial to your knowledge of that market.

An interesting thing to consider might be Real Estate Investment Trusts or REITs. These are companies that will manage their owned properties. What you do, as an investor, is put money into the project. This can give you insight into the world of real estate investing without needing you to actually, directly own the physical property.

Similarly, real estate syndications are where a group of funders pool their money together to obtain a property. This requires more hands-on than REITs, but it offers a similar safety net of risk-sharing. You may also designate a manager to oversee the operations of the property if you were looking for a less hands-on approach.

Another similar type of investment opportunity is the crowdfunding approach, where investors also pool their funds to get in on a project.

Finally, you have flipping. This is where you buy a property, renovate it, and then flip it for a profit. There’s a lot of risk/reward with this type.

Ultimately, there is a lot to know about real estate investing. It can be intimidating trying to figure out the right way to get into it, but taking real estate investing courses can be a huge help. Learning from experienced professionals will help you gain the knowledge and confidence you need to know you’re making an informed decision. It’s the first step toward investing success!

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