Five Types of Investments - Which Type is Right for You?

Smart investors analyze their opportunities and are patient to find the right deals. If you are not a full time investor, you should rely on professionals to guide you through the process of investments. Expecting a return with little analysis and without adequate security is speculating or gambling.

There are many real estate investment strategies. Here are five types of properties that investors can invest in:

Residential Real Estate

Residential real estate investors invest in properties such as single family homes, townhouses, and vacation houses. Revenue is derived from rents paid from tenants to landlords. Successful residential investors purchase properties at a good value with a large down payment, hold long term, and rent for a profit.

A record number of residential foreclosures and a faltering economy have created many good buys for buyers. Often these properties are purchased by investors at a reduced price, but they also could be hiding secrets that could cost an unaware buyer.

Commercial Real Estate

Commercial real estate investors invest in properties such as office buildings. Typically owners of these properties are sophisticated investors. Due to the higher risk of these investments, investors often need to put at least 50% of the purchase price down and sign a non-recourse loan.

Industrial Real Estate

Industrial real estate investors buy properties such as storage units, car washes and other special purpose real estate. Many times, industrial real estate investments have added revenue streams, such as adding coin-operated vacuum cleaners at a car wash, to increase the return on investment for the owner.

Retail Real Estate

Retail real estate investors buy properties such as strip malls, shopping malls, and other retail storefronts. Sometimes the owner of these properties receive a percentage of sales generated by the tenant store in addition to a base rent.

Mixed-use Real Estate Investors

Mixed-use real estate investors buy properties that combine any of the above categories into a single venture. Mixed-use real estate investments are popular for those with substantial assets because they have a degree of built-in diversification.

Looking for Real Estate Investment Opportunities?

No single real estate company or agent is experienced in all types of investments. Dan and Traci & Consultants have experience in assisting residential investors and in guiding buyers with foreclosures and short sales. We maintain an exclusive list of investment properties that we share with our select buyers.

Our extensive network allows for us to direct investors interested in other types of properties to the appropriate resource.