Investing in real estate is a great way to make a return on your money. However, there are a number of different ways that you can invest in real estate that you need to be aware of. When you know about the different ways of investing, you will be able to determine which one you would want to do.
Residential Real Estate Investments
As the name would suggest, residential real estate investments will include the purchasing of residential properties such as houses, apartments and vacation properties. These properties will then be rented to people who pay you each month to live in the property. The length of the stay will vary depending on the rental agreement you have with the tenants. The return on investment with residential real estate will vary depending on the original price and the rental amounts you are able to charge.
Commercial Real Estate Investments
With commercial real estate investments, you will be looking at buying office buildings. These buildings will then be leased to businesses for them to use as their office. When you lease the buildings, you will charge a monthly or quarterly rental amount. One of the benefits of commercial real estate investment is the fact that commercial leases are often for multiple years.
Commercial real estate investment is often considered to be more stable than residential because of the longer leasing terms. With these leases, you will have a steady income and some protection should rental rates decline during the leasing term.
Industrial Real Estate Investments
When looking at industrial real estate investments, you will be looking at any property that is considered industrial in nature from warehouses to car washes. These properties will be leased to companies for their industrial needs such as storage or as a factory space. This form of investment will have significant service and fee revenue streams which can be very appealing to investors. There are also a number of ways that investors will be able to increase their returns such as adding vacuum cleaners to a car wash.
Retail Real Estate Investments
Retail real estate will consist of strip malls, shopping malls and other properties which will be used for retail purposes. Investing in this kind of real estate is often considered a good option because you may receive a percentage of the sales made by the tenant. Of course, this will only happen if the lease or rental agreement have been created with this in mind. A major benefit with retail real estate is that the tenants are more likely to keep the property in good condition because this is a reflection of their company.
Mixed-Use Real Estate Investments
There are times when you can invest in properties that combine all of the other investment categories. The primary issue with this investment is the large capital that is needed to fund it. It is also generally difficult to find mixed-use properties that will make you a decent return on investment. To know more visit the website at https://3cre.com/commercial-real-estate-cincinnati-ohio/.