Real estate is a broad term that describes a wide variety of property, from individual homes to commercial properties. It includes land, buildings, and improvements like roads, parking lots, and other structures. It also includes natural resources, including water, minerals, and plants. Undeveloped land is part of real estate, but developers often combine different lots into one to increase density and value.
Residential real estate consists of resale and new construction homes. Single-family homes are one of the most common types, while other types include townhouses, triple-deckers, and quadplexes. Commercial real estate, on the other hand, includes commercial buildings like office buildings, shopping centers, and other commercial spaces. It also includes industrial properties like warehouses, hotels, and medical centers.
Residential real estate is often purchased for personal use, but it can also be treated as a solid investment. For instance, many first-time investors opt for wholesaling properties in order to learn the ropes and make money. Then, they renovate the homes and resell them at a higher price. Once a property has appreciated in value, it can make a lucrative investment.
Depending on the purpose of the property, commercial real estate can be used for a variety of businesses, from small businesses to multi-million-dollar companies. Some commercial properties even let other businesses lease their space. In contrast, industrial properties are used for manufacturing facilities, warehouses, and distribution centers.