Real Estate Investing

A triple net lease (NNN) is a type of commercial lease in which the tenant promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance in addition to the rent and other expenses. Many investors view triple net leases as attractive investment vehicles because they provide low-risk, steady income.

A real estate investment group (REIG) buys or builds various types of real estate, such as a set of apartment blocks or condos, then allows investors to purchase them through the company, thereby joining the group. REIGs are most attractive to high-net-worth investors seeking to invest directly in real estate but who don’t want to assume full property management responsibilities. Unlike real estate investment trusts (REITs), REIGs are not subject to any specific limitations or disclosures.

A real estate investment trust (REIT) owns, operates, or finances income-generating real estate. Properties in a REIT portfolio may include apartment complexes, data centers, healthcare facilities, hotels, infrastructure, office buildings, retail centers, self-storage, timberland, and warehouses. In general, REITs specialize in a specific real estate sector. The three types of REITs are equity REITs, which own and manage income-producing real estate, mortgage REITs, which lend money to real estate owners and operators either directly through mortgages and loans, and hybrid REITs, which use the investment strategies of equity and mortgage REITs.

A commercial real estate loan is financing for properties such as retail malls, shopping centers, office buildings, and hotels. Commercial real estate loans are very different from mortgages and carry different tax implications. Commercial real estate loans are almost always given to corporations and businesses rather than individuals.

Investment real estate is a piece of real estate that generates income or is otherwise intended for investment purposes that is not used as a primary residence. Investment property can be commercial or residential and holds different tax implications than residential real estate.