Though not entirely without risk, real estate is widely regarded as one of the best long-term investments I can make. In this article, I’ll take you through 4 smart real estate investment options with a detailed introduction as to which need the most time, effort, and money to pursue.

If you feel Illinois real estate is the industry for you, check out Illinois Brokers Academy. We offer pre-licensing and post-licensing courses, as well as state exam prep dates. Do check our updates now for more information.

4 Kinds of Real Estate Investments

Each option has its highs and lows. These various real estate kinds can benefit different types of investors depending on their needs and goals. There are four main categories of real estate investment:

Residential real estate

Residential real estate refers to any property used for residential purposes. Such as family homes, cooperatives, duplexes, and condos. This type is perfect if I’m looking to begin building my dream home or start a family. 

Residential real estate is a wise investment because of the returns I’ll get. Few real estate companies have a pre-selling period when I can purchase properties at a lesser price. Investors take this opportunity to buy and sell them later on when their worth in the market increases. 

Commercial real estate

Commercial real estate refers to any property where the main goal is to host business operations and services. A few examples are apartment complexes, stores, gas stations, hotels, hospitals, parking facilities, etc. 

Investors in this real estate category are generally business owners who want to flourish their business in a specific location or create a working space for their employees. While sales and transactions do play a substantial role in creating cash flow, most of its returns come from the rental profit of the property. 

If you’re seeking the best real estate classes for yourself, visit Illinois Brokers Academy.

Industrial real estate

When I talk about Industrial real estate, all lands, buildings, and other properties that accommodate industrial-sized activities come into my mind. These investments include the activities such as production, assembly, warehousing, manufacturing, research, and distribution of goods and products. 

Zoning laws will generally regulate which regions in a city these real estate properties can be designated so they won’t disrupt residential and other nearby places during its operations. The ROI is affected by multiple factors, including the kind of property I go with.

Real Estate Investment Trusts (REITs)

I can look at a REIT as a way of niching down in real estate investment. Trust acts as a company that focuses on a particular kind of income-producing real estate — such as hotels, apartment buildings, senior housing, and so on.

As with most investments, the more money I put in, the more I stand to gain in the future, but REITs are an attainable pathway into real estate investment for the everyday buyer.

Which real estate investment you are looking forward to doing?

You have no shortage of options when you’re all set to add real estate to your investment portfolio. You have to be very clear on your personal goals. Real estate is a notoriously illiquid investment, so make sure you understand the time commitment for your funds prior to investing. Master plan out your perfect exit strategy, then create a contingency plan in case you need to switch to Plan B.

It’s a wise decision to do retirement property investment before it’s time to quit the workforce. Retirement property is not just a home to live in once the children have shifted out. It is also an investment with the potential to produce extra income over the decades up to my retirement period.

If you feel Illinois real estate is the industry for you, check out Illinois Brokers Academy. We offer pre-licensing and post-licensing courses, as well as state exam prep dates. Do check our updates now for more information.

THE GOODS OF BUYING

Choosing the correct place to live during retirement is a critical decision. Many elderly people have decided that a retirement property is exactly where they intend to be. If you’re considering a retirement property, here are a few of the top reasons why many people find them so appealing.

1. Low maintenance expense.
2. A convenient and reliable option .
3. Its best for my social life.
4. I’ll feel safe.
5. The transitions are much easier down the road.
6. It must be more affordable than I think.

Want to learn more ways to up your luxury real estate game and excel in the industry? Start by checking out IBA’s comprehensive list of online real estate courses meant to meet every real estate gent where they are. From preparing for your first real estate test to furthering your education. Your jump start in the real estate industry begins here.

THE BADS OF BUYING

As with everything, there are cons to the idea of retirement property investment.

1. It requires heavy investment.
2. Aditional expenses such as service charges and ground rent.
3. Frequently on leasehold.
4. Retirement properties charge an exit fee.
5. Resale value is often far lower.
6. Not according to my needs.
7. Its not my cup of tea.

Ready to take the next step in your real estate education? Learn how to get started in real estate investing by attending our online real estate classes.

IS BUYING RETIREMENT PROPERTY YOUR CUP OF TEA??

As with any investment, and particularly one which involves parting with a significant amount of money, it is vital that I seek professional advice before I invest. I should not dive into doing anything I’m not 100% certain about, and if I do have any doubts, walk away from the situation.