If you want to buy property but aren’t sure about where to start, it’s essential to familiarize yourself with various types of real estate investments. People often associate real estate investing with residential property, but opportunities also encompass commercial, land, and industrial space. This guide discusses several types of real estate investments you may be interested in. 

A Guide to Real Estate Investments

1. Commercial Property 

Commercial properties are used primarily for business operations. Generally, investors buy property and lease it out to businesses for a fixed rate each month or year. If the investor has a loan on the property, the lease amount needs to be enough to cover the loan and provide cash flow so that the space is worth owning.

These properties can also appreciate or gain value over time, depending on the area and condition. Some commercial properties include restaurants, retail shops, apartment complexes, and industrial spaces.

2. Raw Land 

Investors often buy land for profit through commercial or residential development. They may develop the land themselves if they have the connections, funds, and knowledge to do so. However, they can also choose to pass the land along to a development company that understands zoning, environmental laws, building codes, and other specialized topics related to development. Land investing requires market research and deep knowledge of the area, so do your homework before buying this kind of property. 

3. Residential Property 

If you want to buy property for the first time, residential buildings are a good place to start. This property class includes single-family homes, duplexes, and other small multi-unit properties. It’s common to begin with residential investments since they’re usually more affordable with a lower barrier to entry.

Investors make money by renting the properties to tenants for a set amount each month. This will cover the investor’s expenses while also providing some additional income. Like commercial properties, residential properties can also appreciate over time. 

If you need help developing raw land or building a commercial space, turn to APPRO Development Inc. & CERRON Commercial Properties LLC in Lakeville, MN. Their knowledgeable team offers a comprehensive solution for real estate development that includes everything from the design and planning stages to leasing and managing the property once it’s built. Learn more about their services online, or call (952) 469-9444 to speak to a friendly representative.