Real Estate

Real estate includes land, property, buildings, and air rights above and the underground rights below the land. The term real estate is used to refer to physical property ( If someone is said to be in a real estate business, they are involved in the purchasing, selling, and managing of real estate properties. Real estate has different specific characteristics that make it different from other classes of assets.

Characteristics of real estate

• Scarce- Land is in a scarce supply, and one can only get a lot of from it if they erect many buildings in a single land.

• Unique- It is never possible to find a piece of real estate that is similar to another

• Permanent- Infrastructures such as the streets, the sewer systems, the sidewalks are not replaceable.

• Constant improvements- Constant improvements on land can increase its value hence generating more income.

• Location- This business is affected by the buyer’s preferences, including the location of the property.

• Immobile- Real estate cannot be moved from one place to another.

• Not destructible- Land cannot be destructed unless it is a case of erosion.

Main types of real estate

The decision to invest in real estate tends to be overwhelming given the many options available ( However, if you are new in this business, it is essential to understand the four main types of real estate then determine which one suits your investment strategy.

i. Residential

This real estate option has grown in the US over the past years, with the housing value hitting $33.6 trillion. There are various residential properties you can deal in, including;

• Triplex

• Duplex

• Fourplex

• Cooperatives

• Condominiums

• Mobile homes

There are various online sources you can find information about the available residential real estate, such as local MLS, Zillow,, or even the real estate agents.

ii. Commercial

The commercial real estate market in the US is estimated to be $17 trillion, meaning that it is lower than the residential market. This is because although the population might be high, not everyone needs a place for business purposes. Buyers usually contact the lenders and complete the deals directly ( You can learn more about this type in sources such as Fundrise, RealtyMogul, LoopNet, and CREXi.

iii. Industrial

This is more similar to the commercial but treated differently because of the way the property is used. It includes properties for manufacturing, production, research institutions, power plan stations and data server centers for famous companies. The listings for such properties can be available in online sources such as JLL, CREXi, Cushman & Wakefield, LoopNet, and CBRE.

Real estate market – young couple looking for real estate to rent or buy

iv. Land

This is a long term strategy of investment because the taxes and management fees are low compared to other real estates. People buy land for future development or to preserve natural resources such as water and minerals.

This includes; orchards, undeveloped raw land, ranches and farms, timberland, and recreational land.

The various online sources where one can find information about available land for sale and auctions include;


• Lands of America

• LandWatch

Some states have many vacant lands, such as Arizona, and if you are interested in purchasing land, the best source for finding one is through the local land brokers.