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Four Types of Real Estate

Four Types of Real Estate

 

Real estate is one of the booming businesses in the country today. Real estate is defined as real property that is made up of land and improvements that include fixtures, buildings, structures, roads and utility systems. The term “real estate” means actual or real physical property. Real is derived from the Latin word that means ‘royal’, since many kings used to be the sole owners of all of the land that made up their kingdom. And fun fact: in the original United States Constitution, it outlined that only property owners were eligible to vote. This, thankfully, has changed. Though most people in the United States now own their own property anyway! 

 

When we think of “real estate”, most minds go directly to homes, or property in which people are tenants. But little do many people know: there are actually four types of real estate, and they don’t all have to do with houses. To know more about these types, check out this article!

 

Types of Real Estate

 

If you are interested in going to the real estate business, or simply just curious about that world, you must know that there are four different types. Each of these are unique and have their own purpose and utility. The four types of real estate are as follows:

 

  1. Land
  2. Industrial
  3. Commercial
  4. Residential

 

Here’s a bit more in-depth about each of these types of real estate:

 

Land Real Estate

 

This is the most basic kind of the four types. Simply put, these are plots of land that haven’t been developed at all, or only have minor updates. These are mostly the undeveloped property and vacant land that includes the reuse, early development, site assembly as well as subdivision. Developers buy the land and then combine it with other properties which is known as ‘assembly’. They then rezone this so they can increase the value and density of the property. Once there have been considerable developments to an expanse of land, it becomes considered one of the following types of real estate:

 

Industrial Real Estate

 

Industrial real estate refers to the land and buildings that are used for industrial activities like warehousing, transportation, construction or factories. These are also used mechanical production as well as research and development. The buildings are sometimes used for storage, research, production and distribution of goods. However, some consider the buildings used for distributing goods to also fall under commercial real estate, but the construction, zoning and sales are all handled differently.

 

Commercial Real Estate

 

commercial real estate

These are your places of business, AKA commercial land and buildings used to carry out business operations. This includes shopping malls, office buildings, strip malls or individual stores or boutiques. Hotels, medical centers, apartments and parking lots are also included in this type of real estate. Basically any property upon which business is conducted with paying customers is considered commercial real estate. 

 

Residential Real Estate

 

Residential real estate is the most common type. This is what most people think of when they hear the term “real estate.” These properties consist of housing for families, groups or individuals. Residential real estate include apartments, single-houses, townhouses, condominiums as well as other types of houses and living arrangements like multi-generational houses or vacation homes.

 

How It Works

 

There are several areas in the real estate world that you can explore and find a career in the future, or simply uncover interesting information about how the real estate world works. They are divided into 6 areas, which we will discuss in further detail below:

 

  1. Property management
  2. Real Estate Lending
  3. Professional services (law, accounting, etc.)
  4. Development
  5. Sales and marketing
  6. Brokerage

 

Property management is when the real estate agency or firm helps the homeowners rent out their houses or units in their building. They are the ones responsible for showing the units to interested tenants, fixes deficiencies, make repairs, and carries out necessary management responsibilities that are required for maintaining the property. They get paid by charging the owners for a percentage from the rent of the tenants in the complex or property for their services.

 

Real estate lending on the other hand helps lenders, and these people play a big role in the development of the property and use this to finance their business. The lenders are usually consist of banks, private lenders, credit unions as well as government institutions.

 

Professional services is an area of real estate where there are professional agents working for the firm to help it function. Some of the most common examples of people who are considered to provide “professional services” are accountants, interior designers, general contractors, lawyers, construction workers and even people in the trade.

 

Development or real estate development is an important area wherein developers process the purchased land, rezone and construct or renovate buildings on the property. These are then sold or leased to end users. Developers earn their money by adding value to the land by taking on the risk of financing a project that they can later flip for profits to individuals or businesses that want to use their land for any given purpose. These people typically know all of the necessary city codes and zoning laws that list requirements for how buildings must be structured. There is a lot of knowledge and planning that goes into real estate and land development. 

 

Sales and marketing as it applies to real estate are people and departments that typically work in collaboration with the developers to help sell the building and units they have developed or created. They earn through commission for making all the marketing sales and materials needed in order to help sell the units or properties. Most of the time these firms assist in selling newly developed buildings and other properties.

 

Brokerage on the other hand is a firm that employs or hires a team of real estate agents or realtors in order to facilitate a transaction among buyers and sellers of a property. It is their job to represent the firm and help them purchase or make a sale with the best terms that they can come up with the buyer.

 

How Does One Get Into Real Estate?

 

Becoming a real estate agent or diving into other related careers can be extremely fun and rewarding. According to recent studies, the median pay of a real estate agent is estimated to be around $46,000 from the US Bureau of Labor Statistics. All you really need is a license, no college degree necessary! Not only that, agents also get commissions, and if they have the experience, they can earn as much as $100,000 or more each year. No wonder people take interest in this kind of work. But how do you become involved in the real estate?

 

Some people, by sheer luck, become real estate moguls simply because they work hard or that they have been introduced into the business early on, even before people took it seriously. However, there are now qualifications that one must have in order to become a real estate agent. Here are the basic qualifications that one must comply in order to become one:

 

  • Age
  • Application process and fees
  • Background checks and fingerprinting
  • Continuing education
  • Education requirements (such as a high school diploma or GED but most of the time no college degree is required)
  • Exams and exam eligibility
  • Pre-licensing courses and post-licensing requirements
  • Process for achieving the next level of licensing
  • Reports or criminal history

 

In some states, a license is needed in order to qualify to be a real estate agent. There is a reciprocal licensing agreement in some areas too, which means you can get a license in one state and use it in another without getting another exam to qualify. However, keep in mind that each state has their own process in order for one to get a license through reciprocity. Make sure to check within the area you are living for the requirements needed. 

 

In conclusion…

 

Getting a license may take time and money, but in the end, it can be a really rewarding career. There is also flexibility in comes to career opportunities too. You may even consider going into different real estate designations and other certifications in order to specialize in one area. If you wish to be in the business then the best thing that you can do is study not only the four types of real estate, but explore even further into the possibilities that are offered through real estate. This way you have the knowledge you need in case you decide to become an agent or simply purchase a property or sell it. Either way it is always a good thing to educate yourself about these things as they can be handy in the future. Good luck!

Tiare Johnson
Tiare Johnson
15:50 08 Jun 22
I didn’t have to worry about a real estate agent, closing costs, & a lot of things that you have to take care of when you sell a house in a traditional way. I like the fact that it was fast, easy, & everything went great! Jamie is fantastic to work with!
Christopher Jenks
Christopher Jenks
19:38 31 May 22
Very communicative and trustworthy group of professionals. The selling process was transparent and fast. Definitely worth considering...
Karen Wheeler
Karen Wheeler
18:31 22 May 22
Great team to deal with
Kailey Bowman
Kailey Bowman
07:08 22 May 22
Mo F
Mo F
23:51 20 May 22
We had an awesome experience!! Jamie Kirk is amazing and made our experience great!!
Jcbbowman1987
Jcbbowman1987
18:42 20 May 22
The best in the business!
peter maiers
peter maiers
04:13 20 May 22
Easy fast and I trusted them ever step of the way !! great team of people all interested in doing everything correctlyPeter B
Connie Bowman
Connie Bowman
02:38 20 May 22
Fantastic Company!
Britne Salsbury
Britne Salsbury
02:34 20 May 22
Casey and his team and are amazing! They are organized and have great follow up. A really great group of people to work with!
Denise Klein
Denise Klein
01:43 20 May 22
Casey Ryan is an incredible professional when it comes to the needs of sellers that need to sell their homes off market. As a real estate agent I always recommend Casey to anyone looking to work with an off market buyer. He is honest, trustworthy & always looking for win-win solutions for everyone involved! The real estate market is better because of Casey & his company, We Buy Any House
jose moran
jose moran
22:43 19 May 22
Chandler Gentry
Chandler Gentry
21:56 19 May 22
This team is so amazing! Makes everything so easy and super reliable!
Amanda Jones
Amanda Jones
21:30 19 May 22
Alex Moses
Alex Moses
20:09 19 May 22
Best company to work with in the real estate game. ABSOLUTELY BEST CUSTOMER SERVICE IVE EXPERIENCED!!
Kyle Mellies
Kyle Mellies
20:06 19 May 22
Donald Gibson
Donald Gibson
19:41 19 May 22
Great communication and pleasant to work with! Everything went smoothly!
Josh Wathen
Josh Wathen
19:40 19 May 22
The team at We Buy Any Vegas House are extremely thorough and very kind. They go above and beyond to help you through the process. I would highly recommend.
Devin Flynn
Devin Flynn
19:34 19 May 22
Jamie was an absolute rockstar for us! She went above and beyond all our expectations, do not hesitate to go with them!
Blake Friedman
Blake Friedman
18:26 19 May 22
Casey Ryan and his team from We Buy Any Vegas House are the best in the game! Highly recommend!
Andrew Brannick
Andrew Brannick
18:12 19 May 22
Worked with Ryan on the sale of my Vegas property, I thought it was going to be a little difficult being out of town in Arizona. Ryan walked me through the process of selling and was able to get me an offer that was higher than I was expecting. He handled everything for me and made the process easy and really quick which was what exactly what I was looking for! Would 100% recommend for anyone looking to sell their house
Jared Vidales
Jared Vidales
17:50 19 May 22
Great service, great pricing. Sold my mothers house to them, and they handled it with care.
Kathy Hallett
Kathy Hallett
17:49 19 May 22
Jamie immediately helped me feel comfortable and the whole process was quick and hassle free! 5 stars
Melani Kirk
Melani Kirk
17:33 19 May 22
Jake Groves
Jake Groves
16:29 19 May 22
Local to Vegas and they are the best. I spoke to every cash home buyer in Vegas. Most of them just low-balled me over the phone. Ryan met me at the property and made an offer, which turned out to be the highest. He also agreed to close with the difficult hoarding tenant still there. Jamie supported me through the escrow process, she was very responsive to any questions I had and kept me informed during the closing. Less than a 30-day escrow. I spoke to a few of the team members over two months as I was getting other offers and all of them were easy to talk to and patient. They have a great team and make sure you include them in your decision-making.Thanks againJG
Joe Skaggs
Joe Skaggs
16:14 02 May 22
S Holt
S Holt
19:49 27 Apr 22
The first person I met was Allen. He immediately made me feel comfortable and confident in dealing with this company. I'm chronically ill. Allen is the only real estate person I'd let in my home.Throughout the process I ended up dealing with the whole team. Jamie deserves a medal for the hurdles she can overcome. Ryan is great at fixing problems and handling the big stuff, with a whole lot of support from Jamie. Allen was always available for me and checking in. He is great at answering questions in a way you understand and I always felt comfortable talking to him.Here is the actual email I sent the team today: "Hi everybody. Just wanted to thank you all again. I'm already able to do so much more for myself, I feel like a new person. I love my cute little house. I love the cold. It even snowed my 3rd day here. Because I'm able to move around, go outside, see people, clean the house, run errands, etc I'm starting to walk much better and even breathe better. And I haven't even seen a doctor yet. I don't feel like I'm a prisoner in my house anymore. Just wanted to let you know how much of a difference you make."My sale hit a few snags. But I'm the end, everything worked out just as they promised, for the amount they promised. These are great people to trust. (PS… Don't worry if they use O.D. I thought it was a scam of some kind. It wasn't. I just didn't understand).
Anabel Alvarez
Anabel Alvarez
17:05 12 Oct 21
Thank you WBAVH! Charles and Ryan were professional, personable, and patient with our needs and requests. The process was a breeze and they answered all of our questions in detail. They made us feel comfortable and part of their family. Will be recommending to everyone I know!
Steven Kaplan
Steven Kaplan
07:40 18 Aug 21
jerry gallegos
jerry gallegos
16:18 09 Aug 21
Very nice and helpful, responded to any questions very quick. I will do business with them again when I buy my next house.
Christopher Kampshoff
Christopher Kampshoff
00:30 07 Aug 21
Thank you so much guys, my brother was in a tight spot I appreciate you coming through. He's in a much better situation now. Again thank you.
Kelly Brown
Kelly Brown
18:48 27 Jul 21
I attempted to work with Allen, from this company. He seemed very nice and I was curious about what their company would give me for my home, if there were no realtors commissions involved. He said he needed to see the house. He came over and took a bunch of pictures and said he would talk to his partner Ryan, (the numbers guy), and get back with me in a half an hour. I didn’t hear from him that day. The next day I received a text from him, saying he would contact me on Monday. On Monday, he texted to see if I could talk at 12:00? I said, yes, he never called. Tuesday I receive a call from a random realtor telling me that Allen’s company has referred me to him. I call Allen, of course, to ask him what the heck is going on and he says yes, I work with this realtor, but I didn’t give him your information, he pouched it from our website!! I then say, so are you going to work with me and I find out, exactly what I already knew, they couldn’t offer enough money for my house, so they are not going to make an offer, HUGE SURPRISE!! #1, if you want your personal information safe, do not work with this company and #2, if you want a good offer on your home, don’t work with this company. I bought my home 3 years ago, it’s in great condition, in a great zip code and the market is through the roof!! If you can’t buy a house and get close to what someone needs financially right now, I don’t know when you can! Pick another company besides this one!! There are many!! Stay far away from this particular WE BUY HOUSES FOR CASH!!! You have been warned!!!
Carolyn Gobel
Carolyn Gobel
18:16 22 Jul 21
This company helped keep us from foreclosure. Thank you!
Carlos Caballero
Carlos Caballero
19:15 23 Jun 21
Thank you guys for your help with my Grandmas home. It was in rough shape and she left so much stuff. We couldn’t have taken on cleaning it out and the project.
jesse phalin
jesse phalin
01:29 18 May 21
Thank you, Thank you, Thank you! Went above and beyond assisting me through this process. Helped me move my things and even let me leave what I wasn’t taking with me. Thanks for all of the hard work.
Kelly Stewart
Kelly Stewart
21:27 08 May 21
My husband handled the process but felt good dealing with this local company and they did not try to change price after seeing the house. They actually offered higher once they saw our home. Had 5 companies come our to give us bids and they all were bait and switch. They beat everyone’s offers too. We tried to list before and couldn’t sell. I don’t know why anyone would work with head aches of real estate agents and paying commissions, banks, inspectors and the time to close only to walk away with the same money. Thank you Ryan and Jamie.
degan Stewart
degan Stewart
21:23 08 May 21
Thank you guys so much. Jamie is so sweet and on it. Ryan Is one of the most genuine people I’ve met in Vegas. They did what they said they’d do when they said they would and kept us in the loop the whole time
Brian Higgins
Brian Higgins
22:00 04 May 21
Thank you guys so much for everything. Ryan and Jamie Helped me find a place to get out of our old place. It was so nice to have the moving company just handle everything for me.
Sheila Winn
Sheila Winn
19:05 09 Apr 21
I struggled with the idea of selling my house to a "flipper". This company was fair, professional and extremely helpful every step of the way. I never had to wait for a response from Kelly Schnippel when I had a question or concern.I personally would recommend them to anyone looking to get a fair price for their property all the while getting kindness, professionalism and assistance from the buyer.Thank you Kelly Schnippel! I appreciate YOU and your team!Sheila Winn
Valerie Grijalva
Valerie Grijalva
17:30 27 Feb 21
Casey and his team will handle your transaction with the upmost professionalism and class like no other. Their knowledge in real estate will exceed your expectations and you won't be disappointed from beginning to end with their communication and systems to ensure your goals are met. I highly recommend Casey and his team!
Ann Reback
Ann Reback
18:51 25 Feb 21
Thank you for your professional and personal help in this process. You and your team have been so knowledgeable, responsive, courteous and kind...understanding my goals and executing each step in a timely and professional manner! THANK YOU! I will recommend you and your team to friends and others in our community.
Aviv Ben Shimon
Aviv Ben Shimon
16:38 25 Feb 21
Jess Lapensee
Jess Lapensee
16:31 25 Feb 21
From start to finish the selling process was quick and easy!
Eyal Karban
Eyal Karban
16:22 25 Feb 21
The best team in the business!Really helped us to cash out our home, very fast, very professional, great price, thank you!
Kate
Kate
01:02 26 Nov 20
We were looking to sell our home and called We Buy Any Vegas House so we could get more information. We spoke to Casey Ryan. Ryan was informative, answered our questions, and he went out of his way to give us the best advice on selling our home. Kelly was also helpful and was quick to answer any questions we had.We recommend calling We Buy Any Vegas House to anyone interested in selling their home.
Lynne M
Lynne M
04:52 24 Jun 20
I have nothing but positive things to say about this company! I needed to sell a house quickly after a death in my family. I spoke with several Cash for Houses Companies in Las Vegas and settled on We Buy Any Vegas House. Everyone was very sensitive about my situation, helpful, answered all my questions and extremely responsive when I called. Ryan and Kelly were awesome!After we settled on a price everything went super smoothly in escrow and again if I had any concerns or questions there was immediate feedback. Also the fact that I was able to do this remotely as I live in California was extremely helpful! I am so grateful for all the help I received during a very challenging time in my life.
Freddy Aleman
Freddy Aleman
18:47 27 Dec 19
My wife and I recently bought a home from Casey Ryan. The home we purchased is located in Centennial Hills. Gorgeous remodel. Casey and his team did a great job of designing the home. We ran into a couple of issues shortly after moving in. Casey had his people out quickly during Christmas week to make a couple of repairs. He gave my wife and I peace of mind during a chaotic holiday week and for that we will always appreciate him. I would recommend a Casey Ryan home to my friends and relatives.
Angela Rienstra
Angela Rienstra
21:06 26 Dec 19
I needed to sell my house from out of state ASAP. I looked into some other larger name companies and was disappointed with their turn-around time and lack of customer service. I'm so grateful to have found Ryan (and Kelly)! They understood my time crunch and moved heaven and earth to buy my house at a fair price and closed by the promised date. They were with me every step of the way and offered world class service! 100% would recommend to anyone!
Sue Kuckelmann
Sue Kuckelmann
17:02 16 Nov 19
We couldn’t be more pleased with the service provided. From start to finish the team was professional and extremely helpful. All the deadlines were met or exceeded even when I was in Arizona and my husband was in Las Vegas. I would recommend them to anyone who is looking to sell in Las Vegas.
Sam Thompson
Sam Thompson
17:47 25 Oct 19
Great people and very professional. Treated me and my situation fairly and with care.
Mandy Majano
Mandy Majano
01:49 07 Oct 19
They did exactly what they said they would. Great company! Highly suggest!
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