REAL ESTATES
W H AT I S R EA L ESTAT E?
Real estate is defined as the land and
any permanent structures, like a home,
or improvements attached to the land,
whether natural or man-made.
Real estate is a form of real property.
R E AL E S TAT E AG EN T
A real estate agent is a licensed
professional who arranges real estate
transactions, matching buyers and
sellers and acting as their
representatives in negotiations.
F I V E M A I N C AT E G O R I E S O F R E A L E S TAT E
Residential real estate
Commercial real estate
Industrial real estate
Land
Special purpose
R ES I D E N T I A L R E A L E S TAT E
• Any property used for
residential purposes.
Examples:
Single-family homes
Condos
Multifamily residences
C O M ME RC I A L R EA L E S TAT E
• Any property used
exclusively for business
purposes.
Examples:
Gas stations
Stores
Commercial building
I N D U S T R I A L R E A L E S TAT E
• Any property used for
manufacturing,
production,
distribution, storage,
and research and
development.
L A ND
• Includes undeveloped
property, vacant land,
and agricultural
lands.
S P EC I A L P U R P OS E
• Property used by
the public.
Example:
Cemeteries
Parks
Schools
M O ST C O M M O N WAY S TO I N V E S T I N R E A L
E STAT E
Homeownership
means buying a house to live in and can be a good investment since the
property's value may increase.
Investment or rental properties
real estate assets purchased primarily to generate income rather than for
personal use.
House flipping
real estate investment strategy where someone buys a property, makes
improvements or renovations, and then sells it for a profit.