Real Estate Investing: A complete guide to getting started

Before we start, it’s important to understand the meaning of the term” Real Estate” at the most basic level.

If you’re new to the industry or looking to get involved this guide will be your go-resource for the basic terms in Real Estate and basic stages taking before any real estate investment.

Real estate can refer to a suburban home, an empty plot of land or even a high-rise office building in a busy metropolitan area. This term generally applies to any piece of land with its attachments.

Generally, a property falls into one of the three categories but first let’s dive into the types of real estate before the business side of things.

Types of real estate
Most times some real estate agents will choose to specialize in one or two of the real estate businesses wow all these have built their whole ariens dealer in multiple parts. The types are listed below;

● Residential
● Commercial
● Land

● Residential
Residential real estate refers to any properties that are for personal use. These properties are sold out for the intent of making profits.

● Commercial
Commercial real estate (CRE) is any non residential property that serves to generate income. A real estate agent focuses on selling to people that are rich like investors and also businesses that are looking to rent space for profit.

● Land
In this category, vacant or under development are mostly found there. This sector of real estate is niche and very multi-faced. And it is also profit-oriented.

Pros and cons of Real estate investment
The chart below highlights some of the major pros and cons and provides a baseline for discussing passive and active investing as said in the article.

Pros
● Real estate appreciates in value over time.
● Real estate office table monthly cash flow.
● Real estate is a great hedge against inflation.
● Real estate lets you use leverage (debt) to control more real estate than you can otherwise afford.

Cons
● Investing in real estate can be expensive, and your capital isn’t liquid.
● Investing in real estate often requires personal guarantee in large quantities of debt.
● You may have to invest out of state to get the return you want.
● Real estate investing takes 100 more hours than stock marketing investing.

Real estate aims to minimize your exposure to asymmetric risks, where only one class of assets declines and the rest increases.

In conclusion, the strategy is not without its risks of course, but we have the benefits of time to recoup our losses if things don’t go our way.