There are many different kinds of real-estate investments and it's essential to know what each sort of investment is and what the benefits and risks involved are. The types of investments which involve real-estate include Real estate Investment Trusts which are often known as REITs, real-estate partnerships, vacation rental property, rental property, and raw land investments. Each of these real estate investment types has its own advantages and pitfalls.

Real-estate Investment Trusts are companies that sells, buys, manages, and develops land and properties. These REITs are set up as a security that sells on all the major exchanges the same as a stock, and directly invests in real-estate by mortgages or property. These trusts get special consideration concerning taxes and they usually offer a high yield and are very liquid compared to other real estate investment types. Individual people can invest within this type of real estate investment by buying shares directly on one of the open exchange markets or through an investment broker.

The next sort of real-estate investment we are going to look at is a real-estate partnership. This is when several individuals partner together and pool their funds and resources for the sole purpose of real estate investment. Investments are made with joint ownership with the additional partners in the real-estate investment group.

Vacation rental property is one sort of real estate investment that provides a rental income quite often. This type will be considered a long term investment, but a big advantage is that you can sell this property and acquire the value of the property regardless of how many years you collect rent for the property. The disadvantage is the fact that as the owner of the property you are responsible for any damage, repairs, and Main Page maintenance even when the renter caused the problem. If the problem was caused by the tenant in which case you do have some remedies obtainable in civil court for the price of repairs and parts. This investment property can be rented for short amounts of time, and there may be periods of vacancy where there is absolutely no rental income from it.

Rental property can be one of the best real-estate investment types on the subject of long term income. This kind of investment property usually provides a monthly income unless the property is vacant. Regardless of how long you own the investment property you should get back at least the value of your original investment, and in most cases a lot more. You collect rent for as long when you own the property without your investment ever losing value, so the monthly income minus expenses is a whole lot like a very high interest payment. Raw land real estate investment is any time a person or company invests in raw land and then makes a profit off of the natural resources of the land or develops the property.

Regardless of what real-estate investment type you choose, you should be aware of all the advantages and disadvantages for the type you are preparing to invest in. Do the research and make your investment plan, including which types of real estate you want to invest in. Do your homework before investing and also you will never be sorry afterward.