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Basic of Real Estate Investment

Real estate is a great investment that provides income from rent and capital gains in retirement. Property values generally rise over time, especially in growing urban areas. As a landlord, you can help the community by providing housing while benefiting from a strong economy. There are four main types of real estate investing: residential, commercial, industrial, and land. Residential includes houses, condos, and apartments. Commercial includes properties for businesses like shops, offices, and hotels. Industrial includes properties for manufacturing, warehousing, and distribution. Land includes vacant property purchased for future development or natural resources.

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209 views3 pages

Basic of Real Estate Investment

Real estate is a great investment that provides income from rent and capital gains in retirement. Property values generally rise over time, especially in growing urban areas. As a landlord, you can help the community by providing housing while benefiting from a strong economy. There are four main types of real estate investing: residential, commercial, industrial, and land. Residential includes houses, condos, and apartments. Commercial includes properties for businesses like shops, offices, and hotels. Industrial includes properties for manufacturing, warehousing, and distribution. Land includes vacant property purchased for future development or natural resources.

Uploaded by

Nikky Mina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER 1

Basic of Real Estate Investment


Why is Real Estate a Great Investment:
Real estate is an excellent method to diversify your financial portfolio. Furthermore,
if you invest in rental properties, you can benefit from the income flow while the
property appreciates, providing big capital gains when you need it most - in
retirement.
Real estate value rises over time: If you invest in the proper location, especially in
urban regions with growing populations, you can anticipate your investment to
increase in value within a year. It's also a profitable and secure investment. Even if
there are setbacks, you can always discover peace of mind and confidence.
As a real estate investor, you can help the community while simultaneously
benefiting from a flourishing economy. You can turn it into a rental property with
your investment, providing a reasonable living for families that cannot afford to own
or buy a home. The stronger the economy, the greater the demand for real estate in
the area.
Don’t you think you need this?

Glossary Of Real Estate Terms

Following are some key terms to remember when investing in real estate:
1. In a contract for the sale of real estate, two people have always been involved:
the vendor and the buyer. The seller is the vendor, while the customer is the
buyer.
2. There is always a contract for the acquisition of land, as we call it. This is a land
property agreement between the two parties.
3. Different factors are taken into account while purchasing real estate land. In
most cases, this is the amount paid by the buyer in return for the property.
4. A certificate of title is a document that identifies the property's location,
volume, and folio numbers, as well as its present owner. Any easements,
mortgages, or third-party interests in the land may also be included. NOTE:
The original certificate is retained by the Land Tiles Offices, while a duplicate is
held by the landowner or mortgage lender.
5. A mortgage is a legal document in which security, such as land, is pledged as a
guarantee of repayment.
6. The day on which the title to the subject property is transferred to the
purchaser, as well as the resulting financial agreement and payment, is known
as the settlement date.
7. Default is defined as failing to meet an obligation when it is due, such as failing
to pay interest or principal on a mortgage when it is due.
8. A right to use another person's property for a certain purpose or a right to
prevent the owner of the property from using a portion of their property in a
specific manner is known as an easement.
9. Encroachment is defined as a building that extends in whole or in part over a
neighbor's property, such as a fence.
Now you know that what more do you need?

The different types of real estate investing


Real estate investing is divided into four categories: Residential, Commercial,
Industrial, and Land.
1. Residential: Any property used for housing is referred to as a residential real
estate. Family homes, cooperatives, duplexes, and condos are examples of
properties where the investor or a party renting the property lives. If you want
to start building your dream home or start a family, this type is great.
2. Commercial: Any property whose primary function is to house business
operations and services is referred to as a commercial real estate. Apartment
complexes, supermarkets, petrol stations, hotels, hospitals, parking facilities,
neighbor strip malls, movie theaters, and other commercial assets are
examples. Business owners that wish to build their brand in a certain place or
construct a working environment for their workers are often the investors in
this category.
3. Industrial: Because of the unique way that industrial real estate is used, it is
normally treated as a separate sort of real estate class. Production, assembly,
warehousing, manufacturing, research, and distribution of commodities and
products are all examples of these operations.
Several factors, including the sort of property you choose, determine the
return on this investment.
4. Land: In metropolitan regions, the vacant or raw property is purchased for
future development as well as natural resource rights such as mineral, water,
and air rights. When compared to developed properties with buildings and
tenants, investing in land is a preferred long-term option because taxes and
maintenance costs are typically quite low.
Farmland, ranches, and timberlands are examples of undeveloped or
agricultural land. Because these properties are real and finite resources, many
investors consider them to be good investments.
When compared to purchasing a home or a warehouse, undeveloped land can
be a much more cost-effective investment that does not require property
insurance.

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