Property consisting of land or buildings is how real estate is defined. Every year, what goes into real estate changes.
Before you look into investing in new property, here are the list of different kinds of real estate:
Residential Real Estate- This includes reselling homes and construction work. The categories consist of is single-family homes (most favorable), condominiums, high-value homes, co-ops, townhouses, duplexes, triple-deckers, quadplexes, multi-generational, and vacation homes.
Commercial Real Estate- This includes shopping centers, strip malls, medical, educational buildings, hotels, and offices. Apartment buildings can be contemplated as commercial, even if they are only used for residences due to being owned to produce income.
Industrial Real Estate- This includes manufacturing buildings, property, and warehouses. Buildings are good for for production, storage, etc. Some buildings that distribute goods are considered commercial real estate. The classification is important because the zoning, construction and sales are handled differently.
Land- This includes vacant land ( incorporates developed, early development/reuse, subdivision and site assembly), working farms and ranches.
You may have to worry about mortgages later in time.
Whats a mortgage? A mortgage is when you take out a loan (usually from a bank), on a property or real estate. You then over time come up with a plan between the borrower and lender, to ensure that the money gets payed back over a specific amount of time till the lender receives all money back.
Here are some of the best mortgage loans that you should look into:
- FHA Loans
- VA Loans
- USDA Loans
- FHA 203k Rehab Loans
- Conventional Loans
How to turn real estate into an investment:
Buy REITs - also known as Real Estate Investment Trusts, allows you to invest in real estate. They pay higher dividends meaning its better for investment in retirement. If the investor no longer wants or need the regular income, they have the ability to automatically reinvest the dividends to increase their investment.