How to Get Started in Real Estate Investing in 2022

Abstract

According to the National Council of Real Estate Investment Fiduciaries, private commercial real estate properties held for investment purposes returned an average of 5.3% to investors in the first quarter. What Is Real Estate Investing? Real estate investing is exactly what its name implies: the act of investing time and resources into assets held within the real estate sector in return for the chance to capitalize on future profits. From real estate investment trusts and tax liens to buying rental properties and flipping single-family homes, real estate investing is a diverse and attractive means to a single end: generating wealth. There are exceptions, of course, but most of today's real estate assets will fit under one of the following categories: Residential Real Estate: As its name suggests, residential real estate is a term reserved for real property intended for residential purposes. Commercial Real Estate: Any buildings and the land they occupy which are zoned for business use are considered commercial real estate. In particular, there are a few things new investors should ask themselves before they buy their first real estate asset: What do you want out of real estate investing? Are you ready to be a landlord? How much debt do you have currently? What leverage do you intend to use? What do you want out of real estate investing? Are you ready to be a landlord? How much debt do you have currently? What leverage do you intend to use? Why Do You Want to Invest in Real Estate? Knowing why you want to invest in real estate is just as important as the act of investing in real estate, if not more so. As a result, stock market investors may essentially become real estate investors by purchasing shares of an REIT. While owning shares of a REIT may not give investors a tangible real estate asset, it does allow them to own a piece of a company that generates profits from several different types of real estate.