What is Real Estate Investing?

Real estate investment primarily involves the acquisition, possession, control, leasing or sale of real estate as a commercial venture. This includes real estate owned by individuals or organizations for the purpose of making money from the sale or rent thereof. Commercial real estate investment also includes the lease or rent of such real estate. The objective of real estate investment is to make money by buying low and selling high. Property improvement as a part of a real estate investment plan is typically thought to be a specialized sub-specialty of commercial real estate investment known as real estate development.

real estate investment

Commercial real estate investment plans can be structured to create cash flow by using loans and / or stock options. A portion of the profits may be used to buy more properties. Real estate investments can be made in almost any property that can be developed. These properties can include apartment buildings, industrial sites, single-family residences, blocks of land, vacant lots, businesses (through leases), vacant land, retails stores, warehouses, manufacturing plants, warehouses, office buildings, hospitals, recreational centers, schools, hotels, motels, bridges, pipelines, toll roads, etc.

Real estate investment is a highly diversified sector with substantial opportunities for the well informed real estate investor. Real estate includes the tangible assets found within a building or its vicinity, such as a manufacturing plant or office complex. Real estate investment also includes the non-tangible assets of the business, like cash reserves, insurance policies, accounts-receivable, goodwill, capital financing and the property owner’s net worth. The tangible assets are generally more valuable than the intangible ones, although the overall asset value will depend on the overall performance of the underlying business.