Real estate consists of property including the structures and land on it, and its accompanying natural resources like water, plants or minerals; immovable property consisting of the same kind of land, buildings or homes in general. It includes personal property such as clothing, furniture, automobiles, etc., and real property which own the underlying structure and that has been placed by a single person or group to earn income, profit or rent. In legal terms, real estate is “real” property that is “assessed”, and therefore the legal title to real estate passes through the hands of the person who pays the taxes for it. Usually, real estate consists of several types of property all of which are subject to taxation.
Real estate deals with developments that transform land into something else, either a structure or a piece of residential real property. Examples of such development include apartment complexes, industrial sites, hotels, shopping centers, manufacturing, office complexes and the like. Development occurs under four distinct categories: common law, statutory, proprietary and mall land. Developing real estate involves many aspects and these categories are used to classify real estate transactions. Below is a list of some of the most commonly dealt real estate types and their respective classifications:
Common law real estate deals with the real property owned directly by individuals such as private homes, condominiums, cooperative communities, town houses, mobile home parks, and other similar residential real estate owned directly by a number of individuals or companies. In cases of co-ops, real estate is organized into several collectives. The underlying idea of common law is that the ownership and control of real property are shared by the members of the collectives in proportion to their contributions or shares. These are called proprietary properties. Common law real estate also deals with the financing of such properties.
Under common law, the ownership of the property is transferred by one party to another after a contract is signed. The basis of such contract is the performance of certain duties by each of the parties. There are two main types of contract-lease and purchase. Most real estate investors focus on either buying or selling property under either classification.
Buying real estate investment requires buying enough property for the purpose of making an investment while investing in rental property involves buying enough properties for renting purposes. There are various ways of investing in real estate business. For instance, there are new construction condos, mobile home parks, single family homes, luxury apartments, commercial real estate, vacant land, agricultural real estate, foreclosure properties and so on. Some of the most popular real estate investment strategies include rehabbing, M&A, limited partnership, franchise, landlord-tenant relationships and others.
If you want to get started in investing in real estate business, you need to have your own set of skills, tools, experience and capital. You should also have a clear idea about what you want to invest in and how you will get started with your real estate business. Before taking any steps forward, you should be aware of the laws in your particular area and get professional help from an attorney if required. Most people who are getting started in investing in real estate business usually deal with residential properties but there are others who venture into commercial properties as well. Whatever you do, it is important that you conduct proper research and study the market before investing any money.