Types of Investing in Real Estate and Land

by : Stephen Campbell

The real-estate and land-investment business has evolved as the most profitable business for those who can put in lot of cash in the land or the property and wait for the increase in the value of the land and property. Although the property or land may fetch instant cash in exceptional times like the sudden increase in the value due to reasons in the market or due to the property's unique location. This makes for the type of real estate investing type called the short-term-investment, the long-term real estate and land-investment means that the investor has to wait for a long time for the land or the property to consolidate worth.

Making a short-term investment depends largely on the professional's skill, study and experience of the market. The long-term real estate and land-investment type is generally considered the most profitable investment since the period of the investment is long the returns are also great and provide good return on investment in the business.
The different real-estate and land investments are REITS, rental properties, vacation rental properties, and raw land investments. These different types of real estate and land-investment types have their own risks and benefits, which the investor must study carefully before investing.

REITS or Real Estate Investment Trusts

The Real-Estate-Investment Trusts are organizations that are involved in the buying, selling, land and property development and management. The real estate investment trusts companies work as a security and sell their products on all the main stock exchanges are the stocks. These REITS work in a standard way, they put in their money directly in the business in the form of mortgage and property. The special feature of this type of real-estate and land investing is that they enjoy an exclusive tax consideration by the government and the returns the investor receives are higher and are easily convertible to cash for the investor as compared with other types of investments. This type of investment is ideal for individual investors and they can buy the shares directly from the stock exchange or through their broker.

The other type of real-estate and land investments option is the real-estate partnership, where different individual investors come together. These individual investors gather their funds and other resources and direct their investments only for the real-estate investments. The investment is a kind of joint ownership in this investment group. The vacation rental property is another type of real estate investment where the investor gets regular income from the rent of the property.

The vacation rental property investing is known as the long-term investment option and this type of investment enable the investor to not only have regular rental income but also they can sell the property once there is enough value for it despite the rents received. However, for availing the good value the investor has to maintain the property in good condition. In the raw land investing, the investor reaps profit from its natural resources or develops the land then sells it for big profit.