There are several different types of real estate investments and it is important to understand what each type of investment is and what the benefits and risks involved are. The types of investments that involve real estate include Real Estate Investment Trusts, real estate partnerships, leave rental property, rental property, and raw land investments. Each of these real estate investment types has its own advantages and disadvantages.
Real Estate Investment Trusts are companies that sell, buys, manages, and develops land and properties and are set up as a safety that sells on all of the major exchanges just like a stock, and directly invests in real estate by mortgages or property. These trusts get special consideration relating to taxes and they usually offer a high yield and are very fluid compared to other real estate investment types.
The next type of real estate deal we will look at is a real estate partnership. This is when several individuals partner mutually and pool their money and resources for the sole purpose of real estate investment. Vacation rental property is one kind of real estate investment that provides a rental returns most of the time. This type is considered a long term investment, but a big benefit is that you can sell this property and get the value of the property no matter how many years you gather rent for the property.
No matter which real estate investment type you prefer you should be conscious of all the advantages and disadvantages for the type you are planning to invest in.
More Information: Jeff Adams Real Estate Strategies