Many real estate investors take a substantial amount of time to explore and understand the various types of properties they can purchase and rent out. Steven Taylor Los Angeles has focused his investment efforts on apartment buildings. Nonetheless, there are other types of buildings investors can acquire. Here are three types of real estate investments.
Commercial real estate investment occurs when an investor buys a large or medium-sized building and allows a business to occupy it. The building may contain multiple office units or have an ample, open space that can house cubicles and bulky equipment. Procuring a building that has individual office units gives investors the chance to rent it out to more than one small business. It is worth mentioning that most commercial properties require multi-year leases; such leases result in cash flow stability, protecting the interests of both the lessor and lessee.
There are many kinds of residential properties an investor can obtain. Some examples include apartments, townhomes, vacation homes, single-story houses, and multi-story houses. Individuals and families can reside in these buildings provided that they adhere to specific sets of rules and pay rent each month. Note that Steven Taylor LA manages a firm that deals with residential real estate in urban areas. Typically, to be able to stay in a residential property, a person has to sign a twelve-month lease. Doing so encourages him or her to remain there for at least one year before moving elsewhere. If leases for residential estates lasted less than half a year, owners would have a difficult time generating a significant amount of return on their investment.
Investors who handle retail real estate acquire large strip and shopping malls so that various forms of retail outlets can settle in them. Such outlets include department stores, clothing stores, jewelers, shoe stores, food markets, restaurants, pharmacies, electronics stores, pet stores, and specialty shops. Some retail property contracts require that tenants pay their owners a percentage of their sales each month, in addition to rent. This requirement motivates tenants to work hard to attract and retain customers. It is likely that the tenants who run shops housed within retail complexes value their space because they know that the proximity they have to other stores ensures that they will get a certain amount of customers each month.
Ramp Up Your Real Estate Investing
There are different kinds of properties in which a person can invest. Some of these properties are as small as a single-family home while others are as large as a shopping plaza. Decide on the right property investment for your budget and ROI requirements.