Real estate refers to land composed of the buildings and land on it, and its accompanying natural resources like water, minerals or plants; immovable land of this kind; an exclusive right vested in it, buildings or housing in particular. Real estate includes personal property like houses, plots, barns, industrial lands, farms, vineyards and other improvement lands. It also includes the structures associated with business like office, shops, warehouses, garages, sheds, train stations, hotels and other buildings constructed for business. A number of people invest in real estate for various reasons like purchasing a home or land for investment purposes or to develop it further, or simply for a vacation spot. Regardless of the reason, acquiring real estate involves a lot of hard work, money and time.
There are three basic categories of real estate investment trusts. The first one is the single family residential real estate investment trust which aims at developing a specific piece of land to the point that there will be no need to rent or sell the property for a period of time. This category includes houses, condominiums, townhouses, row homes, mobile homes, apartments and tracts of land with a simple structure designed to be developed. The benefits of this type of residential real estate investment trust are that the houses and other properties are usually not too large and do not occupy too much land. This also makes for easier management, less paperwork and more security for the investors.
Another category is the multi-family residential real estate trust, which is designed to build up multiple units on a piece of property. The benefits here include that the land can be leased for a longer period of time, and more properties can be built at the same time. The downside, however, is that there will be a higher cost for developing each unit since there are fewer options here. Developing multiple units in this case requires financing that is backed by a lender or other financial institution.
The third category is man-made real estate, which refers to any building that was not intentionally created for a specific purpose. These include schools, office buildings, roads, bridges, barns, storage facilities, etc. Man-made real property can take many forms, but the most common types of man-made real estate that are used as investment properties are office buildings, commercial warehouses, hospitals and residential homes. These properties, particularly the ones that were not intended as residential dwellings, can sell for more than their real value over a period of time depending on the economy, demand and other factors. A few good examples of man-made properties include apartment buildings, hotels, office complexes and strip malls.
It is important to note that real estate is different from property. Property, on the other hand, refers to pieces of land bought with the intent of using it for residential purposes. Real estate on the other hand refers to any buildings constructed with the intention of being used as a place of residence. While these two categories overlap, the way that each area is used is different and should be considered accordingly.
One type of real estate that falls in between the two categories is permanently attached property. Permanent attached land is any land that is owned by a single family and is usually purchased with the intent to allow that family to live there permanently. In order for this type of property to be purchased, it must be located within the United States and it cannot be situated outside of the United States. In order to purchase permanently attached property, a family will have to apply for a deed of trust. Once this is done, a deed in trust is signed by the family to which the land is going to be transferred. This is done in most cases with the intent to allow the transfer of ownership to a third party once the money for the land is received.
