In order to be a successful real estate investor you have to know where to start. There are 3 main areas of Real Estate Investing. These areas are Residential Real Estate, Commercial Real Estate and Land. You need to understand each one of these categories in depth to see which would be the best fit for you to start your real estate investing empire.
Residential Real estate is dealing with properties people actually live in. These are typically single family homes, town homes, lofts or condos. The majority of real estate professionals practice in the residential real estate realm because most real estate transactions consist of residential sales. That just means people are buying residential property more than anything else. If you are looking to get into real estate investing you will find it easier to sell residential property because people always have to have a place to stay. Additionally, it is easier to get a loan on residential real estate than any other category.
Commercial Real Estate is property used for business purposes. These properties are typically office building, hotels, apartment complexes, shopping centers, fast food structures, malls, etc. The commercial side of real estate can be very lucrative. However, commercial real estate does not move as fast as residential real estate on average. This is also due to the fact that commercial real estate is typical more expensive than residential real estate. The lending practices on commercial are way more strict and not as many consumers have the capital to purchase these deals due to the amounts of cash needed to close.
Lastly, we come to Land. Land is mainly real estate that does not have a structure on it, or it may have a structure but the main marketing point of the property is its location. People buy land for all types of reasons; such as to hold for long-term gain, development and more.
Look into yourself and see which aspect of real estate investing is the most exciting to you. Then specialize and market yourself to your potential clients. This leads into the next thing you need to master if you want to build a success real estate business; Marketing!