Real Estate Investments - All you need to know Part I

  

(Source: https://azbigmedia.com/real-estate/commercial-real-estate/understanding-the-positive-side-of-owning-commercial-real-estate/)

Time and time again, it has been proved that investing in real estate is one of the most effective ways to build wealth. Experts all across the world have claimed commercial real estate investing to be one of the highest income streams. Listed below are few of the examples of commercial real estate:

·      Office buildings

·      Apartment buildings

·      Warehouses

·      Medical centers

·      Hotels

·      Farmland

·      Malls

Commercial real estate investing has provided thousands, or should I say millions of investors all across the world, with mind-blowing risk-adjusted returns as well as portfolio diversification. However, there are various investors out there who aren’t even familiar with the subject. When compared to different traditional investments like bonds and stocks, commercial real estate investing is inaccessible to most.

Stocks and bonds are traded consistently on a secondary market. Whereas, real estate is counted as a scarce resource and holds a great deal of value as a hard asset. As easy as it may seem, if you don’t know where to begin, you will find it to be pretty intimidating. And that’s exactly what I will help you with.

In this post, we will focus on three major points in order to help you get your real estate investing journey started:

·      Top Ways to Invest In Real-Estate

·      Tax Consequences of Real-Estate Investing

·      Impact of Technology on Real-Estate Investment Landscape

Before we begin, let’s learn what real estate investing is:

What’s Real-Estate Investing?

According to TheBalance,
"Real-Estate Investing is a wide category of investing, operating as well as other financial activities that revolve around making money from properties or cash flows that are directly or indirectly linked to tangible property."

Top Ways to Invest in Real-Estate

There are different ways of investing in real-estate with different amounts of money as well as different degrees of capital, time commitment, risk, investment horizons, as well as return potential. While some investments are to take advantage of appreciation and income generation, others are simply to maintain a stable cash flow. Real estate investing can be broken down into 2 major categories, namely:

·      Active Real-estate Investing

o  Property Flipping

§  House Flipping

§  Wholesaling

o  Rental Properties/ all commercial assets

·      Passive Real-Estate Investing

o  Private Equity Fund

o  Real Estate Mutual Funds

o  REITs

o  Crowd Funded Platforms

o  Online Real Estate Investment Management Platforms

Thanks for sticking around, watch this space for more on real estate investing.

(Source: https://azbigmedia.com/real-estate/commercial-real-estate/understanding-the-positive-side-of-owning-commercial-real-estate/)