The best ways to finance a residential real estate investment is commonly purchased with cash or financed with a mortgage through a private or commercial lender.
The person that deal with residential real estate development is called residential real estate developers. They build single-family homes, multi-family developments, and mixed-use developments that include residential living units. While many projects might involve the construction of new properties, others will involve the renovation of existing properties.
A residential real estate developer may be an entrepreneur or an established business. The developer envisions a residential real estate project and then takes it from a vision to paper and finally to physical property.
The developer is responsible for every aspect of the project, from property acquisition, zoning, design and engineering, funding, construction, and the sale or leasing of the property.
Importance of Residential Real Estate Investment
Residential real estate provides housing for families. It is the greatest source of wealth and savings for many. The residential real estate development business and investments provide a source of revenue for millions.
Income-producing properties need professionals to lease, manage and operate these properties. Careers in residential real estate can include financial analyst, development, investment, lending, property management, asset management, leasing agents, brokers, appraisers, asset managers, marketing, accounting and more.
Residential real estate is property (both land and buildings) used for housing. This is in contrast to commercial or industrial real estate, where the land and buildings are zoned for operating a business, such as a store, an office or a factory.
Purchasing residential real estate is often the largest and most important financial investment a person makes in their lifetime. Its value is determined by many factors, including size and location, and is subject to shifts in the market. Some individuals invest in residential real estate as a money-making venture, either by flipping it for a profit or renting it out to tenants. But most people simply live on their property.
Types of Residential Real Estate Development
Residential real estate encompasses various types of homes, from single-family houses to apartments. Deciding which type of housing is right for you comes down to budget, family needs and location, among other factors. Common types include:
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Single-family homes
The typical suburban house is a single-family home: a stand-alone residential structure that usually sits on its own land. These are single units meant for one occupant or family; they are not divided up into multiple units.
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Townhouses
Housing units that stand side by side, with shared walls separating one from the next, are known as townhouses (or townhomes, or row houses). This type of housing unit is typically individually owned and has multiple levels.
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Condominiums
Condominiums (condos for short) are privately owned units that are often located inside a large building or within a community of other such units. They are typically townhouses or apartments. The community of condo owners jointly owns and maintains any shared areas within their community, such as lobbies, hallways and elevators. In some cases, this may also include shared amenities like a gym, a pool or a parking garage.
