What is in Real Estate
What is in Real Estate is a safe, secure place to call home, a workplace to earn a living, a career to buy and sell homes and other buildings and property for clients, as well as a marvelous investment opportunity.
Real estate has created more millionaires in the United States by far, than any other investment vehicle. In fact, it has been reported that as many as 97% have made their money in real estate.
Our current President, Donald Trump, made his fortune in real estate. After all, everyone needs a roof over their head.
The two primary forms of real estate in use today are residential real estate, and commercial real estate. There are many ways to make a living in real estate, and related occupations.
Residential Real Estate
Residential real estate is real estate that is considered to be used as a residence to live in, a living space, or to enable others to live in as in the case of rental properties.
They are utilized for non business, or non commercial purposes, generally speaking. This includes houses, condominiums, undeveloped land, multi-family or multi-unit, and townhouses.
These residential properties may be owner-occupied or investment oriented. The buildings or structures can be single unit or multi unit domiciles.
Commercial Real Estate
Commercial real estate is defined as a structure or property to be utilized for business purposes, or to provide a workplace or work space, and not a space or place to be lived in.
Commercial real estate can be strip malls, shopping malls, restaurants, retail stores, grocery stores, convenience stores, hotels, motels, office space, warehouses, as well as other retail establishments.
Make a Living with Real Estate
Growing up I was exposed to real estate through my Mother, who was a Realtor, or agent. She loved the business and was continually talking to me and other family members about it.
Some of this passion and interest rubbed off on me, and as a result, I also became very interested in real estate, and also became a full time agent.
If you have a passion for real estate or even just a passing interest, you may want to consider making it your career, or even as a part of your investment portfolio, or both.
There are many ways to make a living, and for many make a very good living with real estate. There are other ways to earn a living in related businesses, and occupations, but these are the most common today.
Some of the ways to make a living with real estate are as follows:
A Residential Real Estate Agent is involved primarily in the buying and selling/listing of residential property for clients. A license is required.
A Residential Real Estate Broker is involved in the buying and selling/listing of residential property, and also often supervises agents, and may even run an office.
A Real Estate Broker’s License is required. (Must be a licensed agent for 2 years to become eligible)
A Commercial Real Estate Agent is involved primarily with buying and selling of commercial property for clients. A Commercial License is required.
A Commercial Real Estate Broker is involved with buying and selling/listing of commercial property for clients, and also may supervise commercial agents, and may even run a commercial office.
A Commercial Broker’s License is required. (Must be a licensed commercial agent for 2 years to become eligible)
An Appraiser evaluates or appraises residential and commercial property, and land to arrive at an accurate valuation.
Appraisals are used by banks, and mortgage companies prior to making a loan to ensure they are making a safe investment.
Real Estate Inspector
An Inspector looks over all of the major systems of the home to determine condition. These inspections are utilized by home buyers, usually as a clause on a sales contract, to know the overall condition of the property.
The results of the inspection will often dictate whether the home buyer goes through with the home purchase or not.
A Title Company provides a title inspection, title insurance, escrow services, and closing functions for the lender, and for the buyer.
Title insurance protects the lender and/or the buyer from lawsuits, and any other claims against the property based on property disputes.
A Mortgage Company can be a mortgage company, bank, thrift institution, credit union, or other lender that provides financing for a real estate transaction.
The property that is borrowed against provides collateral for the loan should the homeowner fail to make agreed upon payments, and a default occurs.
If a default occurs, and the homeowner if foreclosed upon, the property then becomes the property of the mortgage company, bank, or other lender.
An Investor is someone that buys and sells residential, and/or commercial real estate for the purpose of making a profit.
There are many different ways of investing in residential, and commercial properties. Investors may buy foreclosures, short sales, and privately owned homes.
In the case of commercial investors, they purchase commercial businesses, strip malls, hotels, warehouses, etc.
Some of the most common techniques include Buy and Hold, Buy and Flip, and investing in REITs or Real Estate Investment Trusts.
Buy and Hold involves buying property and holding it in the hopes of appreciation. Many investors that use this method also rent out the property for income while the equity in the property builds.
Buy and Flip is a method where the buyer purchases a property usually at a discount, that is in need of some repairs. He renovates the property and resells it in the hopes of making a profit.
A REIT or Real Estate Investment Trust is a is a trust or corporation that uses the monetary proceeds from it’s investors to buy and operate investments with income producing properties.
REIT’s are traded, bought and sold, the same way you would trade any other publicly traded stock, on the major stock market exchanges.
Other investment methods involve options, assigning property, mutual funds, ETF’s, partnerships, crowd funding a property, and many more.
Developers are another type of investor.
Attorney or Lawyer
This may well be the most difficult real estate occupation to attain due to it’s long, expensive, and arduous educational requirements, but it also can be one of the most lucrative.
An attorney reviews and prepares related documentation, handles closings, and is involved in litigation or law suits both to protect those being sued, and to initiate law suits.
A property manager oversees the operation of a property for a property owner. Property managers may manage apartment complexes, single family homes, and smaller multi unit buildings such as duplexes, fourplexes, etc.
A Property Managers duties include collecting rents, negotiating leases, collecting security deposits, paying bills, preparing a budget, organizing expenditures, handling tenant complaints, preparing and distributing tenant related paperwork, and more.
What is in Real Estate – Conclusion
What is in Real Estate is safe, secure place to call home, a workplace to earn a living, a career to buy and sell homes and other buildings and property for clients, as well as a marvelous investment opportunity.
The two primary forms of real estate in use today are residential, and commercial. There are many ways to make a living in real estate, and related occupations.
Residential is properties that are considered to be used as a residence to live in such as single family homes, multi-unit dwellings, condominiums, undeveloped land, and townhouses.
Commercial is defined as a structure or property to be utilized for business purposes.
Commercial can be strip malls, restaurants, retail stores, grocery stores, convenience stores, hotels, motels, office space, warehouses, as well as other retail establishments.
There are many ways to make a living with real estate, and related occupations.
These include, but are not limited to: residential agent, residential broker, commercial agent, commercial broker, appraiser, inspector, title company, mortgage company, investor, attorney, developer, and property manager.
Thank you for dropping by and reading, What is in Real Estate. Feel free to leave your questions, comments, and suggestions below. I will respond to you directly. Please also feel free to share on social media. Good luck with your endeavors. Tom