Real estate investing is a growing field, particularly in America where more people own their own piece of property. The real estate market, although having been in recession for some time now, has seen a sharp increase in home sales. Home buyers are turning to real estate investment to generate income from their investment as well as provide a secure source of living for themselves. There are many different types of real estate investment but real estate can be broken down into two major categories – single family homes and multi-family residences.
A real estate investment trust is just one method of investing in real estate. Other ways include buying rental property and commercial real estate, both of which have much more risks associated with them but can bring much more to return. When you’re looking at these different options, it’s important that you have a clear picture in your mind of what you hope to get out of your investments, as well as which avenue you plan on taking to make the profit you’re looking for.
One of the most popular ways of investing in real estate today is buying vacant land. Buying land allows you to start building on it immediately, which gives you instant, passive income. You can also buy buildings in different stages of construction such as pre-construction and unfinished buildings. These give you the opportunity to purchase after construction and in some cases, you can even turn these pre-construction buildings around and sell them to other investors. No matter what you plan on using your real estate investment trust for, there are a number of different types of properties you can choose from.