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INVESTMENTS
REAL ESTATE INVESTMENTS



What is Real Estate?

Land and any permanent buildings, such as houses, or improvements, whether natural or man-made, affixed to it are considered real estate.

Real Estate

One type of real property is real estate. It is not the same as personal property, which includes things like cars, boats, jewels, furniture, and agricultural equipment but is not affixed to the land permanently.


ESSENTIAL NOTES

  • Land and everything permanently affixed to it or constructed upon it, whether natural or man-made, are referred to as real estate.
  • Real estate may be divided into five primary categories: raw land, commercial, industrial, residential, and special use.
  • Acquiring a house, a rental property, or land is all considered real estate investment.
  • Real estate indirect investments can be conducted through pooled real estate investments or through REITs.


  • Types of Real Estate:

  • Land
  • Residential
  • Commerical
  • Industrial
  • Special Purpose

  • Land

  • All other kinds of real property start with land. Generally speaking, "land" refers to undeveloped real estate and open space. In order to raise the density and property value, developers buy land, combine it with other properties (a process known as assembly), and rezone it.

    Consists of undeveloped land, open space, and agricultural properties including ranches, farms, orchards, and timberlands.


  • Residential:

  • Individual, family, and communal dwelling makes up residential real estate. This is the asset class that most people are familiar with and the most prevalent kind of estate. Single-family homes, apartments, townhomes, condos, and other forms of housing fall within the residential category.

  • Commerical:

  • The term "commercial property" describes the real estate and structures that companies employ to conduct their activities. Shopping centers, individual shops, office buildings, parking lots, hospitals, and hotels are a few examples.

  • Industrial:

  • Land and structures utilized by industrial enterprises for operations including manufacturing, mechanical production, R&D, construction, transportation, logistics, and warehousing are referred to as industrial real estate.




    Examples Of Real Estate


  • Single-Family Dwelling: Any home designed for only one family

  • Multi-Family Dwelling: Any group of homes designed for more than one family

  • Attached: Any unit that’s connected to another

  • Apartment: An individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked or lockable doors. Often seen in multi-story apartment buildings.

  • Multi-Family House: Often seen in multi-story detached buildings, where each floor is a separate apartment or unit.

  • Condominium: A building with individual units owned by individual people.

  • Detached House: A free-standing building not connecting to anything else

  • Portable House: Houses that can be moved on a flatbed truck

  • Mobile Home: A vehicle on wheels that has a permanent residence attached to it

  • Villa: A building with only one room and typically a steep pointy roof

  • Hut: A dwelling typically made of raw materials such as bamboo, mud, and clay



  • Overview of Real Estate Industries:

  • Developmnet
  • Sales and Marketing
  • Brokerage
  • Property management
  • Lending
  • Professional Service

  • Development:

  • The process of developing real estate includes buying raw property, rezoning it, constructing it, renovating it, and then selling or leasing the completed asset to end users. Developers profit from the risk of funding a project and by increasing value to the property through the construction of structures or renovations, rezoning, etc. Development companies produce fresh inventory or a new product, which is referred to as the "primary market".

  • Sales & Marketing:

  • Sales and marketing companies collaborate with developers to market the structures and apartments they design. These companies create all marketing collateral and use their sales representatives to sell the completed unit inventory, earning a commission in the process. These businesses usually concentrate on new units.


  • Brokerage:

  • A company that employs a group of real estate agents, or realtors, to assist in mediating a transaction between buyers and sellers of real estate is known as a real estate brokerage. It is their responsibility to represent both parties and assist them in obtaining the best terms for a purchase or sale.

  • Property Management:

  • Property managers assist owners of real estate by leasing out the apartments in their structures. Rent collection, apartment showings, repairing issues, making repairs, and tenant management are all part of their duties. They charge property owners an amount, usually a portion of the rent.

  • Real Estate Lending:

  • Since almost all properties and projects require leverage, or debt, to finance their operations, lenders play a significant role in the sector. Banks, credit unions, private lenders, and governmental organizations are examples of lenders.

  • Professional Service:

  • A wide range of real estate experts are employed in the sector and contribute to its smooth operation. The most typical examples include accountants, attorneys, interior designers, stagers, general contractors, construction workers, and tradesmen.



    Top Real Estate Mutual Funds


    Vanguard Real Estate Index Fund Investor Shares

    TIAA-CREF Real Estate Securities Fund

    Cohen & Steers Real Estate Securities

    DWS RREEF Real Estate Securities

    VY CBRE Real Estate

    Cohen & Steers Realty Shares

    Baron Real Estate Income Retail

    Manning & Napier Real Estate

    Principal Real Estate Securities Fund R-6

    Fidelity Real Estate Investment Port



    Careers in Real Estate:

  • Analyst: Performing financial analysis and valuation of properties

  • Appraiser: Valuing Properties

  • Agent: A sales agent or “realtor”

  • Building Inspector: Someone who examines buildings and works with appraisers

  • Commerical Broker: An agent who sells commercial properties

  • Director of Real Estate: A Corporate Job

  • Home Inspector: Someone hired to assess the quality of a home for a seller or purchaser

  • Loan Underwriter: A person who analyzes the creditworthiness of a borrower

  • Mortgage Specialist / Underwriter: A person who Approves for Mortgages Applications

  • Real Estate Attorney: A lawyor who specializes for Real Estate Transactions