Real Estate Investing: What Are Listing Agents And Why Are They Important For Those Who Want To Be Rich With Real Estate Investments?
Real estate is property containing the actual buildings and land on it, and its accompanying natural resources like water, plants or minerals; and an interest in it, usually in the form of leasehold. The term real estate is now commonly used to refer to a wide range of commercial and residential properties including apartments, farmhouses, row houses, plots, lands, buildings, etc. In the United States, the term real estate also includes certain manufactured housing which is not intended to occupy residential spaces.
Real estate investment trusts are one type of real estate investment trusts. These can be either individual or business corporations. Unlike individual trusts, business corporations engage in more commercial activities such as leasing, buying, selling, and development. Business real estate investment trusts are mainly used for real estate investment. The most common types of business real estate investments trusts are owner-user residential leasehold improvements trust, deed in lieu of foreclosure trust, and land trust.
An owner-user real estate investment trust is one type of real estate investment trust that permits the owner to use the property for a specified period of time. This type of trust provides flexibility to the owner, so that he can sell the property during his ownership period or during the term of the reversion agreement if he wishes. For an example, assume that John is an investor who wants to buy a single-family house. He contacts a real estate agent who suggests the purchase of a single-family house through a reit.
Reits are basically purchasing deeds of land that give the right to use the land for a specific period of time in exchange of money. There are four main types of reit agreements that investors may encounter in the residential real estate market: fixed-price contract, first-year contract, recurring contracts, and open-market resell contract. Fixed price contract is the most popular contract type, wherein the prices of the properties stay unchanged for the entire term. This means that you will pay for the property only when its value appreciates.
First-year contract allows investors to buy and convert unused buildings into rental units. This is a good option for first time investors who have little capital and little amount of space to develop. Open market resell contracts allow investors to buy and sell the existing buildings in the real estate market. The price offered by the agents varies depending on the type of property and its condition.
Although they are just an agent, listing agents are still crucial players in the real estate industry. They make their clients to list their properties with them, assist in negotiations, perform title work, check ownership status, and provide other important services. You can be a great real estate investor, if you hire professional listing agents to help you succeed in your business.