Month: January 2018

Different Types Of Real Estate Investment

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Real estate has been around for several centuries as one of the asset classes. With the growing population and decreasing space, new investors seem to understand that real estate investment is a great way to stay on the top. Several real estate investors like Tom Krol have rags to riches stories that prove that real estate investment if done correctly can help you make your dreams come true. However, according to , many inexperienced real estate investors are unaware of the different types of real estate investments.

Since real estate investment if fraught with risks, it is advised to make sure you have a legal entity by your side. This involves using a legal structure in the form of a Limited Liability Company or better known as LLC. Your attorneys and accountants can help you set up an LLC or a Limited Partnership (LP) to make sure that all your deals are in order. If you are a part of more than one real estate investment group, it is advisable to use a different LLC or LP for each real estate investment. This asset separation will help protect your holdings in case you run into any financial or legal trouble later on. Real estate investments can be carried out in different forms, let’s take a look at some of the popular ones:

Residential Real Estate Investments
Properties like apartment buildings, houses, vacation houses, etc. come under residential real estate investment. Most of the leases are twelve months long and can be renewed if both the parties are satisfied. Some leases come pre-included with an increase in the rent every year; this depends on the local laws of the state or country.

Commercial Real Estate Investment
Properties like office buildings, skyscrapers, etc. come under commercial real estate investment. Since commercial real estate offers multi year leases, the owners have a more stable cash flow making it an attractive investment for real estate groups.

Industrial Real Estate Investment
This particular type of real estate investment is more varied as all kinds of real estate comes under this heading, like, warehouses, distribution centers, storage units, garages, car wash units, etc. These kinds of special purpose real estate generate sales from customers who are using the specific facilities. Although industrial real estate investment is considerable riskier than the other types of investment since the customer base is a bit narrower, it brings in more revenue in the long run.

Mixed-use Real Estate Investment
This type of investment consists of real estate properties that are a mix of many of the different types of real estates mentioned above. Some real estate properties have the ability to function as different entities. For example, consider a multi storied building, where each floor is rented out a bank, a gym, coffee shop, etc. This mixed-use real estate investment is quite popular as the diversification helps protects your investment group from any financial risks later on. Essentially, real estate investment is a great way to invest money; however, you need to do your research well before choosing a piece of property to invest in.

A Guide To Buying Condos


If you are on the lookout for Condos to buy there are many options available in the market but a few factors have to be considered when purchasing it. suite prices for Prestige condos are reasonable given the location and the features of the property. The cost of a condo is determined by the area and the features available and hence finding out what budget fits your financial situation is to be determined, check for more details.
Before buying a condo, you should know what you are getting into as there are rules and restrictions which you have to abide by. If you are not willing to follow them, then a condo is not a suitable option for you but if you are convinced that a condo is a place where you want to live, then here are some ways to approach buying to make it an enjoyable experience.

Work with a real estate agent: People who are looking to buy a condo look to work with real estate agents. These are professionals that will act as a connection between you and the seller. Their valuable experience and expertise along with skills of negotiation will ensure that you end up with a good deal. You will also spare a lot of time and effort by hiring a real estate agent as they will hunt for condos based on your preferences and hence will cut down your work. You will not have to spend your time on buildings that do not suit your requirement if someone is working for you.

Neighborhood: A right community is the most important thing to consider when you are picking a home. Look for a location that suits your budget as well as your preferences. Most people look for a place which has less commute time to the office. They also want to live close by to entertainment hotspots like the nightclubs, restaurants and shopping malls. If you have kids, then you should look for a place with good schools and hospitals nearby.

Property style and age: Condos are built in high rises or as units of single buildings which look similar to townhomes. So, it is essential to figure out what suits you regarding look as well as the features. If you like to live in tall buildings with lots of families around, then a high rise works well. Some prefer old traditional looking homes whereas others prefer condos with well-maintained gardens.
If budget is a limitation, then you should look for properties that are a few years old. Newer condos with all the features of modular kitchen, latest flooring and closets with contemporary architecture are in high demand, and the prices vary from affordable to costly based on the features you want. Older buildings have a well-established association and hence more organized but ensure that the building is in excellent condition along with checking the financial stability of the association who is maintaining the condo units. Irrespective of the age of the condo, ensure that the construction quality is excellent. Check for red flags like low occupancy and inadequate maintenance of the surroundings.