A lot of people do not know how the industry works; they tend to think that it depends on salespeople and brokers.
However, some people earn a living through this real estate in construction, sales, appraisals, development, dedication, counseling, and so many other fields.
Other people who depend on real estate industries are banks, accountants, lawyers, banks, surveyors, architects, and title insurance companies.
Real estate is the main source of economic growth in the US; reports provided include housing starts, building permits, and housing completions data, which is divided into the following categories.
Homes with 2-4 units
Multifamily buildings with more than five units
How to Invest in Real Estate
The most common ways of investing directly in real estate are;
You can make money in so many ways if you buy physical property. You can make money through revenue from leases or rents and the real estate appreciation value.
Real estate is affected by location and other factors such as crime rates, employment rates, transportation facilities, property taxes, school quality, municipal services, and crime rate. All these can either drive real estate prices up or down.
Offers steady income
You can buy them with leverage.
Offers capital appreciation
Requires big initial capital
Requires active expertise and management
Is usually not liquid
It’s influenced by highly local factors.
You can also invest indirectly in real estate, and this is through a real estate investment trust (REIT). There are various types of REITs, and this is a mortgage, equity, and hybrid REITs.
REITs are divided into three categories that are public non-traded REITs, publicly-traded REITs, and private REITs. If you want to invest in a REIT, buy publicly traded shares.
This is because these shares trade like any other traded security shares, and furthermore, REITs make it transparent and very liquid.