All over the world, the real estate industry is considered to be a profitable or lucrative industry. You can start generating revenue through various means such as being an investor, an agent or more.
Although it is considered to be a lucrative business, it still comes with some challenges or difficulties. However, good strategies or plans, right actions and spotting great deal do help to avert any form of loss.
Also, you need to be knowledgeable about the business. Without it, you won’t be able to know all the nook and cranny or even optimize the business to its full potentialities.
That is why this article offers to help. Here, you will learn the basic knowledge about real estate and all it entails.
WHAT IS REAL ESTATE?
Real estate has to do with the collection of real properties or assets (consisting mainly of land and buildings). It is the profession that deals with buying, selling or renting real properties such as homes, land, apartments and more for residential, commercial or industrial purpose. These real properties consist of land and improvement like buildings, fixtures, road, utility system and lots more.
Here, property rights are given as a title of ownership to the land and its improvement. However, real properties should not be confused with personal properties. Personal properties include investments alongside tangible assets like furniture, jewelry, and more.
TYPES OF REAL ESTATE
There are different types of real estate, each having its unique feature and functionality. However, the main categories include:
Land is known as the baseline for all types of real properties. Most times, land refers to undeveloped properties or just vacant land. An agent or developer combine this property with different types of properties to increase its value. Also, they may buy to sell at higher profits inorder to earnim their commission. Most times, the value of landed properties usually vary as a result of its location. For instance, a landed property in New York is more valuabe than a property in Alabama.
This refers to different types if housing that is meant for individuals, families, It is usually the most common type of real estate while it is being regarded as asset-class. Aside from this, it is known to always deliver stable income for property owners or real estate owners.
This is because people will always live to have a roof over their head even during harsh times like recession. Residential real estates usually include houses, condominiums, townhouses or even undeveloped land. The structure can be in firm of single-family homes, multi-family, owner-developed or rental properties.
Commercial real estates are real properties (land and buildings) used by businesses to perform their operations. This type of real estate is usually lucrative as it covers the cost of being dormant. The only issue with it is that the property may lie empty for months. This type of building includes buildings such as office building, retail warehouse, warehouses, shopping malls, parking lots, hotels and many more.
This refers to properties (lands or buildings) that are used for industrial purposes. These types of buildings are usually large in sizes and are located in strategic location like places with access to transportation advantages (rail lines, harbour and more). Different business activities conducted on the land include farming, mining, warehousing, construction, research and development, factory sites, logistics and more.
CAREERS ASSOCIATED WITH REAL ESTATE
- REAL ESTATE INVESTORS
This is the most rewarding part of the real estate business. Real estate investors have a deep understanding of the real estate business as they know when and where to buy investment properties. They buy the property, maximise the profit and sell the investment. Real estate investors don’t just buy properties as they see fit. They buy while understanding the risks involved. This makes them understand better and avoid loss of cash. To become a real estate investor, the following factors should be put in place:
- Comfortability with risks
- Have funds to buy real properties
- Know how to find the best investment that are suitable for sales
- Analyse the factors
- Know the different investment strategies (rentals, buy-and-hold and more) involved with real estate.
- REAL ESTATE AGENT
This is the most common type of job in the real estate industry. Here, agents help people to buy or sell their properties. This implies that you can be a buyer’s agent or a seller’s agent. They are often categorised into two parts – Residential agents and Commercial agents. These agents work on earning commissions. They look for more leads, close more deals and make money.
- REAL ESTATE BROKER
Although they perform similar jobs with the agents, they perform some slight differences. One major difference is that a real estate agent signs with a brokerage. This implies that a real estate agent works for a broker. A broker can work independently or start his own brokerage
- REAL ESTATE DEVELOPER
A developer buys land and builds a property on it. They work with other professionals such as architects, civil engineers, construction teams and more to complete projects. They plan, coordinate the process in order to make the project a success.
- REAL ESTATE WHOLESALER
Here, wholesalers wholesale real estate properties for themselves in order to make money quickly.
Other careers associated with this industry include property managers, home inspectors, real estate appraisers, leading agents and many more.
Real estate can be lucrative for you as long as you master it. You have to have a deep understanding of it, know the risks involved, search for leads, close deals to enjoy the better part of it.