Investing in real estate can be a good way to make a profit, but requires much thought and research. Here are three of the main types of real estate.

  1. Commercial Real Estate

Commercial real estate involves property that is used to house businesses or otherwise make a profit. Commercial real estate may include hotels, business parks, industrial complexes and retail venues. This can also include multi-family housing complexes with five or more units that are rented out to tenants. Various types of commercial real estate investments include:

  • Wholesaling, where you sell your property contract to another real estate investor
  • Development, where you tear down a building and construct a new building for a business
  • Owner-occupied, where your business occupies at least 51% of the building space that you own

It is wise to seek a professional to help with acquiring commercial real estate, as you will need to know about local laws and ordinances.

  1. Land Real Estate

Land real estate overlaps with but expands on commercial real estate to include:

  • Farmland real estate New Jersey, which refers to the land, machinery and livestock of a farm
  • Property that has not been developed or prepared for any kind of construction

Although land is a scarce resource, investing in land real estate can be risky.

  1. Residential Real Estate 

Residential real estate refers to property that is used for residential purposes, such as single-family homes, duplexes, condos, townhouses and multi-family complexes with fewer than five units. Like commercial real estate, it is possible for residential real estate to generate a source of income but still remain in the residential category. An example would be a homeowner renting out a second home to an individual or family.

Before you invest in one of these types of real estate, do some research and get to know the surrounding business environment.

3 Types of Real Estate

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