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All New Investors Need To Know - The Types Of Real Estate Investment They Can Invest

Want to get complete assistance in choosing the best investment property? Contact Reyes Signature today!

By Alex TurnerPublished 3 years ago 4 min read
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Investing in a real estate has been a major preference of investors since a very long time. But, for the bidding investors, this concept is a bit new and they do not have the complete knowledge about the different types of real estate investments.

As and when you get to know about these investments, you will be surprised to know how people have made millions by investing in real estate properties.

If you wish to generate a strong passive income and get retired early from your job life, top realtors in San Antonio, Texas have listed all the things that you need to know about the real estate market as a new investor.

For Starters –

It goes without saying that every real estate investment has its potential advantages and disadvantages. Before you start adding them to your portfolio, it is important to study its opportunities. Before diving into the types of real estate investments available to us, it is important to know that most investors do not purchase the properties in their own name for personal asset protection and other reasons.

If at all, something goes wrong, you will find yourself facing a lawsuit which will exceed your insurance coverage. That is why, you should hold on to your personal assets. You can accomplish that by the formation of a legal entity like Limited Liability Corporation (LLC)

Let us now look at the categories of the rea estate investments –

Residence –

Residential properties include houses, apartments, pent house, townhouse and vacation houses. The term of the stay is based on the lease or rental agreements. Generally, a lease agreement consists of 12 months in the San Antonio real estate.

Commercial –

Office buildings, shops, sky scrapers, etc. all come under commercial properties. If you plan on constructing a small building that contains individual offices, you can lease them out to companies or people running small businesses who will use your property and pay you the rent in return. Commercial real estates may have multi – year leases. This is in return beneficial to the owner because there is a steady cash flow and stable income even when the rental rates decline. However, the markets do fluctuate and the rental rates can increase within a few months. But, you cannot increase the rates if the commercial property is locked in older agreements.

Mixed Use –

Mixed use properties are the ones which combine any two of the mentioned categories of the real estate investments. This kind of real estate investment is popular for those investors who have significant assets because of the built in diversification which is important for risk control. An example of a mixed use property is the one where different blocks are leased to different businesses like gym, healthcare center, takeaway restaurant, a hair salon, etc.

Industrial –

This type of real estate properties consists of industrial warehouses, car washes, storage units or other special purpose properties whose income is generated through the sales from the customer who use their facility. This type of investment generates the highest amount of revenue in the form of the rent aid by the tenants to the owners.

Retail –

Shopping malls, strip malls, departmental stores etc. come under retail real estate. In a few cases, the property owner will receive a percentage of the sales generated by the tenant in the store in addition to the monthly rent.

Raw land –

Investors generally purchase land for commercial or residential development. But, land buying requires a lot of market research, especially if you are planning to develop the property on your own. This type of investment is for someone who has a large amount of money to invest in the real estate and who is well acquainted with the ins and outs of the real estate.

Which real estate investment is best for you?

As per our realtors in San Antonio, if you plan on investing in residential or commercial properties, doing your due diligence will not just mean coming up with the down payment. Knowledge of the local market is very important. If there are not much demands for the houses or the commercial spaces in your area, or if the property rates are falling, then your investment can quickly become a burden.

The Bottom Line –

It is possible to build a robust income by investing in real estate properties. You just have to hit the spot when the perfect opportunity arises. Let it be any investment, real estate investments have their significant potential and profit. You should definitely get the help of a real estate agent who will give you a fair share of knowledge regarding the investments because of their years of experience.

Reyes Signature Properties, the best real estate firm in San Antonio, Texas is committed to serve its clients in simplifying their investment purchases with the help of expert real estate agents.

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