commercial real estate
Commercial real estate refers to space that is rented or leased by a commercial company. Examples of commercial real estate include: an office building rented by a single company, a gas station, a mall that includes several unique commercial projects, rented restaurants, and unless the business owner owns the property, where Each company will pay rent to the landlord.
Real estate investments also include industrial real estate and retail real estate, industrial real estate generally refers to real estate where products are made or inhabited rather than sold, such as factories, and retail real estate refers to the place where a customer can purchase a product or service, such as retail stores. clothes.
Commercial properties tend to have longer leases, as more rents can be set than residential properties, which means larger and more stable long-term income for the property owner, and may require higher down payments and property management expenses.
Commercial real estate includes multi-year leases, which can lead to greater stability in cash flow, and protection for the owner when rental rates drop, as markets fluctuate, and rental rates can also increase dramatically within a short period of time, but prices cannot be raised If it was agreed upon in old agreements
Residential real estate
Residential real estate refers to any place where people live or reside, such as single-family homes, condos, and vacation homes. Residential property investors make money by collecting rent and regular payments for short-term rentals from property tenants.
Residential real estate investments take several forms, and an explanation of these forms is given below:
Long-term rental property
A long-term rental property is a piece of real estate that an investor buys with the intention of renting it to tenants, and this property can take several types, whether a multi-family house or a small single-family house.
Investors earn money from this type of property by collecting rent from the tenants, or through the appraised value of the property if the investor decides to eventually sell the property.
Some investors choose to live on-site when managing a rental property, which is known as an owner-occupied multi-family property, although this is by no means required.
Vacation Rentals
Owning a vacation rental is similar to owning a long-term rental property, whereby the investor buys a property, usually in an area popular with tourists, and then rents it to visitors who will stay there for a short period of time.
Holiday rental investments can be one of the most labor-intensive residential real estate investments because the investor has to constantly manage property maintenance between different tenants.
flipping
House flipping is one of the most active investments, and when the house flips, the investor buys a property that needs renovation, makes the necessary repairs and renovations, and then sells it.
This type of investment is risky because the investor has to invest a lot of his own money in the house and there is a possibility that the investor will find additional problems, and therefore could lose money instead of making a profit, but if all goes well, he is likely to make thousands profit on sale
TRANSLATED FROM:
Leave a Reply