The Real Estate industry involves buying and selling properties. Often, the process begins with raw land, municipal approvals, and construction. Upon completion, the property may be sold or operated until it has stabilized, which generally means at least 95% occupancy. If a property is vacant, asset managers help fill it with tenants. If it has been abandoned for some time, new investors can help revitalize its value.
There are two main types of real estate: residential and commercial. Residential real estate consists of housing for individuals, families, and groups. These include single-family homes, townhouses, and condominiums. Multifamily rental properties with four or more units are also a type of residential property. Commercial real estate, on the other hand, is land used for businesses, usually for their own profits. Examples of commercial property include strip malls, office buildings, hotels, and medical facilities.
Real estate is land, buildings, and improvements. The improvements include roads, fences, buildings, and fixtures. Natural resources such as minerals and plants are part of real estate as well. As well as buildings, real estate also includes undeveloped land. Developers will often combine this land with other properties to increase their value and density.
Real estate investment trusts are companies that hold a portfolio of income-producing real estate. They may be privately held or publicly traded. There are mortgage REITs, equity REITs, and hybrid REITs. Different REITs are classified by how the shares are purchased. Publicly traded REITs differ from non-traded REITs and private REITs.
A broker works on behalf of a real estate buyer or seller. They charge a commission, usually a percentage of the sale price. They also work to promote a property, collect rent, and maintain it. Lenders play a major role in the Real Estate industry, as almost all properties utilize debt to finance their business.
When choosing a real estate agent, it’s essential to make sure you’re comfortable with their experience. You don’t want to work with a real estate agent who is not knowledgeable about the local market. A real estate agent should have extensive experience and be comfortable dealing with the listing agent on both sides of the transaction.
Real estate agents must build a personal brand and expand their network. The personal brand of a real estate agent will help them stand out from other real estate agents. Having a personal real estate website outside of brokerage websites is a great way to develop your own lead generation engine. While you may be able to utilize sites such as Zillow, it’s also a good idea to develop a personal website that’s optimized for organic search.