Investment in real estate has always been a good option when considering the various avenues for investments. Eugene Bernshtam a real estate developer by profession understands the real deal about real investments and thus shares his detailed knowledge of the different types of real estate developments one can consider putting their money on.
There are primarily five types of investments that can be made in connection with real estate. They are namely:
- Commercial real estate
- Residential real estate
- Real Estate investment trusts (REIT)
- Raw land and new construction
A statutory warning that comes with any kind of investment type is to know about the investment in and out before actually putting in the capital. The reason for this is very simple the money earned by everyone is valuable. One should not make any major mistakes in attempting to save up some of that money for the future.
Eugene Bernshtam has been in this business for a long time now and is thus able to mark the differences between the various types of real estate investments. He would simply describe commercial real estate as one that comprises any type of business, a large living or office space. Residential spaces can be called commercial only when they exceed a certain amount of number of living units in them. Hotels, warehouses, and retail stores are also a part of this.
One of the advantages of investing in this type of estate is that they can be given out for a longer period of the lease and therefore keep the flow of cash continuous, even after one has retired. The right approach to investing in this is to select a location that is suitable to one’s requirements and situations, analyze and compare the property with other properties, and then evaluate the property with the help of correct metrics.
Residential real estate as would agree by Eugene Bernshtm, consists of single-family living units to properties that have multiple units and are often given out on rent. These properties are also sold out to prospective homeowners. The duplex, condo, multifamily, single-family, vacation homes, and apartments are all types of residential real estate. This offers a continued income in the form of rent and therefore the most commonly preferred form of investment.
To invest in this one first needs to become familiar with the concept of investment and get clarity on which kind of property is suitable for them. Once that is finalized, the investor needs to arrange for the funds to make their down payment.
In case one does not have many funds investing in the REITs is a wise thing to do, wherein a company owns various real estate properties and one can invest in the shares of these.
Apart from this crowdfunding is also an investment in real estate particularly aimed at the elite class. Though they offer high returns yet the investment is high as well. Finally, a currently growing trend of investment is raw land and new construction investment. For this, it is very crucial to get an understanding of the present market trends.