Definition of Real Estate Investing

Types and descriptions of investment property.

Purchasing real estate to produce an income rather than for personal use constitutes investment property. Owning and investing in real estate can be complicated, but it also can offer an investor the chance to generate large gains. There are several different types of investment opportunities available.

Commercial

Retail investment property includes manufacturing sites, as well as office rentals. Industrial properties that generate income are considered commercial investments.

Rental

Residential property purchased for rental purposes is a type of investment property. This generates a monthly income from an investment property.

Resale

Purchasing property for resale is an investment type. Buying property below market value then making improvements and selling it for a profit offers a return on investment.

Land

Land investments vary based on the need. Buying land and developing it is considered an investment. Also, land used for agricultural purposes can offer an investment opportunity.

Property Management

Owning apartments and managing the property is considered a real estate investment. Also, property management such as trailer parks offers a gain for an investment.

References

• Investopedia: Investment Real Estate
• Rhode Island Real Estate Sales: Retail & Industrial Properties
• Foreclosures Authority: Types of Real Estate Investments