Real Estate Investment Properties

Many new investors are already inherently comfortable with real estate investing, even if they need a few pointers on how to invest in real estate. In fact, whether or not you've owned a stock or bond in your entire life, the chances are good that you simply get real estate investing. After all, at some point in your life, it is likely that you or someone you know has rented a house or apartment.

In real estate investing, there is no mysterious "Wall Street" to consider, only two parties: A landlord who owns a building and a tenant who wants to rent that building. For the right to use the property, the tenant is willing to pay cash to the landlord. As long as the hot water works and the rent arrives on time, both people are happy.

As a new investor, it is natural that you would consider real estate investing as one of your first choices. The opportunities are much more plentiful than simply buying a house, upgrading the kitchen cabinets and finding a tenant.

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Before We Talk About Real Estate Investment Trust India

Before we dive into the different types of real estate investments that may be available to you, I need to take a moment to explain that you should never buy investment real estate directly in your own name. If someone hurts themselves and sues you, you are on the hook for anything above and beyond the insurance settlement. This could lead to personal bankruptcy or at the very least, significant financial hardship.

There are several ways investors can earn passive income from real estate investments:

Residential real estate investments are properties such as houses, apartment buildings, townhouses, and vacation houses where a person or family pays you to live in the property. The length of their stay is based upon the rental agreement, or lease agreement.

Commercial real estate investments consist mostly of office buildings. If you were to take some of your savings and construct a small building with individual offices, you could lease them out to companies and small business owners, who would pay you, rent to use the property.

Likewise, buying a piece of real estate or a building and then leasing it back to a tenant, such as a restaurant, is more akin to fixed income investing rather than a true real estate investment. You are essentially financing a property, although this somewhat straddles the fence of the two because you will eventually get the property back and presumably the appreciation belongs to you.

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