Not all real estate investment pays off – if you have poured money and time into a rental property for two years just to get no return except the monthly rental income that over time will slowly increase, that is an example of a non-performing investment.
Many people get into real estate investing because they believe is a low-risk way to turn a quick buck. This is triggered by watching popular television shows about buying investment property and flipping houses, which make it look easy and fun.
However, not all real estate investments are low risk. One may require being highly skilled at not only buying and selling but also renting for consistent long-term income. And residential property normally takes a long time to realize its potential in terms of positive return on investment.
If you are thinking about getting into industrial property management investing, this basic guide to the real estate business, which discusses real estate investing for beginners and the 5 skills successful property investors must master, is also for you.
Real Estate Types
Not all real estate is created equal — the different properties have their uses. It is important to know before embarking on an investment, the different kinds of real estate and the typical zoning rules that apply so that you can create a better mix for your portfolio.
Residential
Residential real estate is property that has been zoned for living purposes. This includes apartments, duplexes and other single-family homes.
Commercial Property
Commercial property means real estate that has been zoned for businesses, often industrial or retail service but occasionally office-building or warehouse. It encompasses properties such as shopping centers, warehouses, offices and production facilities.
Land
Land refers to any area of earth, water, plants or minerals. It includes any structure or building on the territory. Land also can be zoned for a specific purpose, i.e., as residential land with little industry but many homes for living there; as commercial zone only with stores and office buildings but no residential areas set aside for such use; or Industrial land upon which people work at specialized factories.
For land owned (or wanted to be bought) by developers, they may ask local government for permission to change the zoning laws.
Potential Career Paths for Aspiring Real Estate Professionals
With so many types of work in real estate, it’s important for aspiring practitioners to recognize the difference between investment and service businesses.
In the real estate field, you don’t have to put up any of your own money: you can act as a broker for property owned by different people or investment groups. Property management firms depend upon their brokers to arrange business for them. You might work from a large insurance office selling policies to land owners and other commercial concerns; help persons finance their property purchases with convenient credit terms. Of course these same people will then be encouraged to invest in savings plans provided by the company offering such service.
Real Estate Agent
Being a good real estate agent is essential to successful property sales. As licensees, real estate agents are employed by individuals or groups of people (sometimes called “business entities”) wanting to buy or sell real property such as homes, apartments or condominiums. They work on commission.
If you become a real estate agent, your job responsibilities include: Appreciate the local market. Based upon your understanding of local conditions, you will assist lay out asking prices to meet each client’s individual needs.
Marketing of properties. You will advise your client on how to display their homes (such as staging them perfectly or suggesting do-it-yourself spruce ups). You should also be capable, through skillful and resourceful means and connections in the industry, of finding customers for these choice properties.
After the paper selling or buying the process of industrial commercial properties can be very complex; much paper work is required in real estate transactions. If you are an agent, it is your job to get all the necessary documentations and draft up a contract for many cases.
Negotiating price。Purchasing and selling real estate often requires negotiation and as such you would help to arrange the matters.
Property Manager
Property managers are hired by owners of real estate property who entrust them with the day-to-day operations. As a property manager, your duties could include:
Attracting potential tenants
Collecting deposits and rents
Responding to tenant requests for maintenance
Checking properties in case the owner lives outside the area
Real Estate Investor
Real estate investors put money into properties in the expectation of selling off that investment for a profit at some future time. As a real estate investor, you could own one or more properties, or pool your capital with other investors into a fund containing several properties. You make money when properties in the fund are sold. You may also receive income from renting out the property while keeping it rich.
