Real estate investing encompasses so many types of investment properties, it’s necessary to classify them and pick the one which they are most passionate about. This would greatly improve the probability of being successful in real estate investing.

Types of real estate investment properties

• Reconstruction Investment Property: These types of investment properties are purchase directly from a developer before the construction or renovation is completed. In arrival for commitment to buy even before the construction is completed the developer will give you a price discount and/or other financial incentives.

• Fixer Upper Investment Property: These types of investment properties are the ones which are in revolting condition and need renovation. These properties are acquired by real estate investors to flip them after fixing-up. In majority of the cases these properties are in foreclosure. Several beginner investors also wholesale distressed properties to other investors without fixing them up. Real Estate shareholder who wholesale make a smaller profit but are able to exit the deal fast and with low risk.

• Foreclosure Investment Property: These types of investment properties are the ones which you buy from sellers who are after in their payments and may lose their property to the bank via foreclosure.

• Cash flow Investment Property: These types of investment properties are the ones which generate rental income for the real estate investor. These are mainly apartment’s buildings and rental houses. This type of investment property is sometimes also called Income property, Rental Investment property or Cash Flow Property.

• Investment Property with Flexible Terms: Such types of investment properties are the ones which can be purchase with no money down or with very little money down. Seller of such properties is very flexible with their contract terms and is willing to make the sale easy for the buyer. Land Contract, Owner Financing, Lease and other similar strategies fall under this category.

Mainly other types of real estate investment property deals are not suited for beginner investors. They are too complicated for beginners. My suggestion is to choose the type of deals beginners want to do and become very good at it.