Categories of Real Estate


If you're intent on developing, acquiring, or owning, or flipping real estate, you can better come to an understanding of the peculiarities of what you're facing by dividing the real estate into several categories.

Residential

Residential structures are properties such as houses, apartment buildings, townhouses, and vacation houses where a person or family pays you to live in the property.

Commercial

The commercial property consists mostly of things like office buildings and skyscrapers. It may not be possible to participate as the office building is locked into the old agreements.

Industrial

Industrial real estate investments often have significant fee and service revenue streams, such as adding coin-operated vacuum cleaners at a car wash, to increase the return on investment for the owner.

Retail

Retail properties consist of shopping malls, strip malls, and other retail storefronts. In some cases, the landlord also receives a percentage of sales generated by the tenant store in addition to a base rent to incentivize them to keep the property in top-notch condition.

Mixed-Use

Mixed-use properties are those that combine any of the above categories into a single project.
The bank, which lent him the money, took out a lease on the ground floor, generating significant rental income for the owner. The other floors were leased to a health insurance company and other businesses.


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