What is Real Estate Investment

Real Estate 101

As per a basic definition, a real estate is a piece of land and everything that is in it, above it, and under it. So when you say you are investing on a real estate that means you are investing on a land and everything with it. Although that is how it can simply be defined, real estate investment in the business world involves purchasing, selling, owning, or renting of the property.

In real estate investment, the buyer or seller can improve the property to make it more profitable. Selling or buying a real estate can be done by a real estate agent or by a certified broker. The agent can offer his or her services to a real estate company or can simply get hired for full time work. But most real estate agents prefer to freelance because they can work for multiple companies all at the same time.

Real estates are not like any other product in the market that is easy to liquidate. Because they are a bit expensive, it can take years before they can be sold. The usual profiteering strategy for real estates that cannot be sold immediately is to have the property rented.

How to Invest on a Real Estate Property

  • Buy the property and rent it out to tenants. The property is still yours and you are responsible for taxes and other legal and maintenance fees. To profit in this, you have to charge your tenants enough money to cover all the expenses and maybe even give you extra savings.
  • You can also invest on real estate properties by investing on groups. What does that mean? That means you own the property but you have a company rent it and build an establishment, say an apartment. The company is responsible for the duties of a landlord and collects the rentals from tenants and you get to share a percentage of the rentals.

These are two of the easy-to-understand strategies in investing on a real estate property. Whether you are considering selling it, having it rented, or using it personally, keep the goal of making an investment out of it in mind.

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Financial Entrepreneur

I'm passionate about business and finance. After working 10 years for an international organisation, earning more money than most people would need to have very good life, I decided to jump on my own life and businesses. My main incomes are from my financial investments and businesses.

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