It goes without saying that there are possible advantages and disadvantages to each form of real estate investment, including particular quirks in cash flow cycles and lending traditions. There are guidelines for what is deemed acceptable or natural, so you may want to review possibilities well before you start adding them to your portfolio. Before you dive into the various types of real estate investments that may be available to you, you should know that most real estate investors buy direct investment real estate in their own name. There are a number of reasons, some related to personal property protection.
Usually, the word "development of commercial real estate" refers to the ground-up construction of commercial investment properties rented out to third parties. Commercial real estate contains office buildings, manufacturing parks, shopping centers, and other commercially oriented properties.
Multifamily apartment buildings and condo developments also come within the limits of the growth of commercial real estate development. The development of commercial real estate involves several different strategies for producing investor returns.
A commercial condo developer, for example, could focus on erecting and selling units in a building and moving to the next project, whereas a multi-family apartment developer could be interested in rental apartment development, construction, and leasing. Some developers also work with large industrial concerns, such as General Electric or Dupont, to build manufacturing facilities or office complexes.
Commercial real estate development is the process of constructing a new building for sale or lease starting from raw land: for the purposes of this guide, let's go with a simple definition.
If you are intent on acquiring development, ownership, or flipping real estate, you can come
to a better understanding of what you are facing by dividing the types of real estate into