What type of commodity can I trade in real estate?

King bell

VIP Contributor
In real estate, a commodity is a term for something that is exchanged for goods or services. In other words, it's basically anything that can be traded on the market. So, what types of commodities can you trade in real estate? You could trade things like homes and buildings if you're an investor or property manager. You could also sell building materials such as bricks and lumber to homebuilders, contractors, and homeowners alike. But one of the most popular commodities to trade in real estate is land. In fact, many investors speculate that real estate is really just a commodity traded on the land. But even though land is a commodity, trading in property probably shouldn't be mistaken as trading in any ordinary commodity. Because homes and buildings still require construction and management while land can (and should) be used for other things such as agricultural, commercial, industrial, or residential development. The important thing to note is that it's not just about the material you're trading in; but rather what you're trading it for. Land can be used for almost anything and because of that, a wide variety of other commodities could potentially be traded in real estate.
 

Jasz

VIP Contributor
Real estate is a commodity that can be traded in various forms. The most common is the real estate investment trust (REIT), which is a publicly-traded company that invests in real estate. There are also real estate investment trusts, or REITs, that focus on other aspects of the real estate industry such as development and management. REITs are often associated with institutional investors looking for high returns on their investments.

Another type of real estate investment is the distressed property company. These companies buy properties that may be in foreclosure or have other problems and try to fix them up before putting them back on the market for sale. The management team of these companies will typically charge rental rates higher than what they would get if they had vacant units, but they do not have to worry about maintenance costs or vacancies because they own the building outright.

The final type of real estate investment is land development, which can include residential or commercial projects. This type of project involves buying land and developing it into something new — whether it's residential housing or commercial space. Land development firms typically require large sums of money upfront so they can build their projects quickly and efficiently, but once they are finished they usually have long-term leases with tenants who pay rent.
 
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