Understanding Real Estate: Wholesale Real Estate for Dummies
Homes are the financial goal for any one person or family. Though usually referred to as the American dream, I can assure you that it is a dream not only desired by Americans. In truth, anyone, especially one with a family in tow, desires a home. It is what we all desire: a place to rest our heads, spend time with family with plenty of space, a backyard and front yard to play with the kids or have barbecues on. A home is the one place where you’re supposed to feel homely after all.
And of course, what’s perhaps worth more to a person that desires a home than money? Buying that house on the block or cul-de-sac isn’t free, nor does it exactly come cheap. But such can be navigated with one simple word, or rather two: real estate.
When wanting to buy a property, whether for yourself or for your business, real estate is the name of the game. But what exactly is it? Well in simple terms, real estate is described as the land or any attachments to the land, whether natural or man-made. It is property, to be more specific, real property, such that can be quite valuable.
Now of course, to go into further detail, there isn’t just one type of real estate, however generic the term might be. In fact, there are quite a few varied types of real estate that fall under the term’s umbrella. For the sake of this article’s length and purpose, I’ll of course list a few of the many below.
Types of Real Estate
- Residential – property owned that’s used for living purposes. Such examples include houses, apartments, condos, studio homes, townhouses, or other single and multi-family residential buildings.
- Commercial – property that’s used exclusively for business purposes. These can include gas stations, apartment complexes, shopping centers like malls or mall strips, theaters, hotels, retail stores, etc.
- Industrial – property owned that’s used for the purpose of the following: manufacturing, production, storage, or research and development.
- Land – property that is currently unused and undeveloped. Usually comes in the form of land that’s vacant, or more agricultural lands like farms or ranches.
- Special – property that despite the name, is open to and used by the general populace. These include parks, libraries, schools and colleges, churches and other places of worship, or cemeteries.
To find out more about the types of real estate, read this.
Learning about real estate is the first step though. The next would be to know more about perhaps why you may want to invest in it. And the reasons for that are varied, but also beneficial.
Reasons to Invest in Real Estate
- Money –one of the most, if not the most common reason, is wealth. Building your money is a viable reason, and few things build money like investing in property. And doing so comes in the form of purchasing it and leasing it to potential occupants, which in turn grants you access to generating income yourself, usually in the form of rent.
- Passive Income – investing in real estate leads to passive income, another word for earning money without doing much of anything. With properties you own and rent out, you help to generate for yourself a source of income from tenants without much involvement save the occasional spending on utilities or maintenance. This in turn helps to grow out your wealth over time.
- Long-Term Appreciation – the reasons listed above of course also add to long-term appreciation, which along with increasing your income amount, also increases the property value of what you own and builds even more wealth for yourself. With all this, it’s best to keep in mind that with long-term appreciation comes other factors to consider such as inflation, demands, and additions and improvements made to the properties you own.
Where Can You Learn More?
Though it may seem like a lot, what’s written here only covers the surface of the game of real estate. There are many more things to learn and factors to take in when considering investing in such. Thankfully, the access to learn more about it isn’t restrictive, as there are plenty of guides and sites around that help you to learn more about wholesaling and other real estate terms and definitions.
Property is the end all be all of owning something for yourself. And real estate and wholesale in real estate help you have all that and more. With income to gain and even more to be had in the future, investing in it is a process that while may be costly at first, will only serve to make you richer in the near and far future. But before considering such, make sure you’re informed.