Choosing to invest in real estate properties is a big decision to make — and there’s a lot of terminology included in the process which might not make sense if you don’t have a lot of experience in the industry. REITs, in particular, are a complicated part of commercial real estate investing — but they’re also pretty important, so here are a few of the most common questions new investors have:
- “Should I invest in real estate?” Real estate investments are definitely a great choice if you have some extra money to invest — and also if you’re a patient person! One of the biggest advantages of real estate investing is that it’s possible to invest a small amount of money but end up with a substantial amount of money.
- “Should I invest in property for commercial or residential real estate?” This is often based on personal preferences, but it’s also important to consider whether you want to turn real estate investing into a career or more of a side job. Many people choose to invest in commercial properties because there’s greater flexibility — instead of managing 200 individual tenants in an apartment building, you might only have a handful of stores you’re working with.
- “What is a REIT?” REIT stands for Real Estate Investment Trust, and it’s a company that owns property which can produce an income.
- “Why invest in REITs?” One of the most important factors that investors consider here is that there are many REITs to choose from, and it’s easy for even the most inexperienced investor to get involved in the industry through an agency like this. It’s pretty easy to find a REIT servicing any industry or business sector you’re interested in, and these companies also provide investors with stable incomes and regulatory practices.
Remember — these five questions are just the tip of the iceberg! If you have any additional questions regarding commercial real estate investing or investing in a REIT, feel free to add them in the comments section below!