When an individual determines that they are interested in investing in real estate, they typically consider buying a second home as an investment property. Within residential real estate, there are different types of assets that an investor can acquire.
Beyond that, individuals that begin investing on the residential real estate side eventually realize that scaling is difficult. Eventually, many transitions to commercial real estate, where similar to residential real estate, there are different types of assets that an investor can acquire.
Residential Real Estate
As the name suggests, residential real estate is intended for living purposes. If residential properties are not owned by owners but are used for financial gain, they have then considered investment properties. Below are the most common types of residential real estate properties:
Single-family homes are usually isolated from other residences and are the most common type of residential real estate.
Condominiums are similar to apartments, but each unit is owned by individuals.
Townhouses are attached to other residences but have their own private entrance.
Cooperative apartments are those in which the residents both own and operate the property.
Commercial Real Estate
Commercial real estate is an integral part of any city and is used for business purposes. When compared to residential properties, they tend to be larger and more expensive, but can oftentimes generate higher yields. Here is the breakdown of different types of commercial properties:
Multifamily refers to residential properties with more than five units. It is often described as an apartment complex or apartment building.
Office properties can range from small single-story buildings to large skyscrapers; they are typically used for business operations.
Retail properties are designed for businesses that sell products or services to customers.
Industrial properties can include factories and warehouses; they are set up to manufacture and store goods.
Mixed-use properties can include a combination of two or more commercial properties e.g., multifamily and retail.
Major Takeaways
The ultimate goal of real estate investors is to earn a profit, receive tax advantages, and to expand their portfolio over the long term.
While both residential real estate and commercial real estate can provide a stable investment, there are differences and nuances that are important to understand.
Conclusion
Investing in Real Estate comes with several advantages. Navigating the real estate investing process can be difficult, but you do not have to do it alone. We are here to help.
How You Can Get in On the Action
Cash Flow Champs is a privately held investment company that focuses on acquiring and managing opportunistic and value-add multifamily real estate properties. The company specializes in repositioning well-located assets in emerging markets surrounded by positive demand drivers such as population growth and job growth.
Cash Flow Champs partners with entrepreneurs and busy working professionals interested in investing in real estate but that lack the time to navigate the process. Alongside our partners, we aim to bridge purpose and profits in a manner that allows us to improve the lives of the residents in our communities and the neighborhoods where we operate.
In the words of Robert Kiyosaki, the poor and the middle-class work for money. The rich have money to work for them. If you are an individual that wants to build and maintain generational wealth through real estate, all while making a positive impact on the lives of residents and the communities where you invest, we’d love to explore opportunities for synergies.
Schedule a brief call with us so we can get to know you better, understand your life goals, and determine where synergies may exist.
This information presented on this site is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the company or any related or associated company and is not a recommendation to pursue a specific investment opportunity. Any such offer or solicitation will be made only by means of the company’s confidential Offering Memorandum and in accordance with the terms of all applicable securities laws and other laws.
