A Beginner’s Guide to Real Estate

Real estate is any land and any permanent human constructions that are attached to

it, like homes or office buildings. It also includes any structures or improvements

that are affixed to the land, such as septic systems and roadways. Real estate can

be owned, leased or rented. Some people purchase their own houses and build

additions on them, while others rent them or live in rental properties that are owned

by other people.

There are six major areas in real estate, and each has its own subcategories and

facets. This guide will explore the basics of each, including key job titles and

responsibilities, how the industry works and important terms to know. For more https://houses4texas.com/

The most familiar type of real estate is residential. This category consists of new and

resale homes, including single-family houses and multifamily apartment complexes.

It can also include portable dwellings, such as houseboats. Residential real estate

can be bought and sold through brokerages and private transactions. It is typically

considered an illiquid investment, meaning that it takes time and effort to sell a

property or piece of land.

Commercial real estate primarily encompasses places of business. It includes strip

malls, shopping centers, hospitals and college campuses, hotels and offices.

Apartment buildings are sometimes considered commercial, even though they are

used for residences. Other commercial real estate categories are industrial and

retail. Land can also be considered commercial or residential, depending on whether

it is undeveloped or being assembled for building development.

A real estate developer can earn a good living by adding value to raw land through

rezoning and building construction or renovation. They can then sell or lease the

finished product to end users, such as homeowners and companies.


When evaluating potential real estate investments, it is important to understand the

market. Factors that impact the market can include unemployment rates, population

growth, crime statistics and transportation facilities. The quality of schools,

municipal services and tax rates also influence real estate prices.


Investing in real estate can be a solid way to diversify an investment portfolio, but

it’s essential to understand the market and the risks involved before jumping in.


For beginners, it is recommended to seek out a reputable investment firm or roboadvisor

that can help with research and analysis. NerdWallet’s ratings of online

brokers and robo-advisors take into account more than 15 factors, including account

fees, investment minimums and maximums, account features and mobile apps.