{"id":1773,"date":"2022-06-19T02:02:51","date_gmt":"2022-06-19T02:02:51","guid":{"rendered":"https:\/\/blog.ark7.com\/?p=1773"},"modified":"2023-05-19T03:56:02","modified_gmt":"2023-05-19T03:56:02","slug":"types-of-real-estate-essential-guide-for-beginning-investors","status":"publish","type":"post","link":"https:\/\/ark7.com\/blog\/learn\/in-depth\/real-estate-investing\/types-of-real-estate-essential-guide-for-beginning-investors\/","title":{"rendered":"Types of Real Estate: Essential Guide For Beginning Investors"},"content":{"rendered":"
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The term real estate is thrown around so much that it seems like everyone knows what it is, why it’s important, and why you should care. However, if you’re starting to look at different ways to invest your money and real estate has emerged as an attractive contender, you may have found that you’re not clear on any of it beyond buying and selling houses.<\/span><\/p>\n

Don’t worry, we’ll keep it a secret between us. To help you, we’ve written this guide to the basics of real estate to help orient you to foundational knowledge pieces that could lend themselves to an exciting journey of investing in real estate.<\/span><\/p>\n

Starting with the basics: what is real estate in general?<\/b><\/h2>\n

Anyone will immediately jump to “For Sale” signs in front of homes when they think of real estate, but the definition is more encompassing than that. Real estate can be defined as land and the permanent structures, components, and resources on that land. For example, permanent structures could refer to a building, while components and resources could refer to trees, water, and infrastructures such as fences and bridges.<\/span><\/p>\n

With that definition, doors are opened wide, and the world of real estate becomes that much more exciting\u00a0(and overwhelming) to navigate, especially if you’re considering investing your funds into real estate assets. To make it less chaotic-seeming, real estate is categorized into four different categories: residential, commercial, industrial, and mixed-use. Every real estate investor is going to be drawn to different areas of real estate, and there are certain advantages and disadvantages to each real estate category.<\/span><\/p>\n

What is residential real estate?<\/b><\/h2>\n

Residential real estate can refer to single-family homes, duplexes, planned unit developments, and multi-family homes such as large apartment or condo buildings. The scope of residential real estate can go beyond this. The aforementioned assets are the most basic and essential to understand. Essentially, residential real estate refers to properties and structures intended for people to live in and not for professional uses.<\/span><\/p>\n

Pros of investing in residential real estate<\/b><\/h3>\n