Freddie Andalaft: Types of Property Investment

Freddie Andalaft know, there are several basic types of investment currently available to the prospective real estate investor. These types, perhaps best separated into three basic categories (Public Equity, Private Equity and Public and Private Debt), provide the investor options when it comes to the levels of risk and return they’re most comfortable with pursuing.

Freddie Andalaft understand the need for future investors to be as informed as possible before seriously considering an investment opportunity.

Types of Property Investment include:

Public Equity

Public equity investments are composed of securities; these are often referred to as publicly-traded real estate operating firms, Though such investments are publicly traded, the underlying assets involved are real estate properties.

Private Equity

Private equity is the traditional method of real estate investment (home ownership). In such cases, it is essential for the investor to protect themselves as much as possible, such as through the performance of due diligence.

Public and Private Debt

Examples of public debt-based investments include mortgage-backed securities; pools of mortgage loans that are bundled and sold by the lender on the public market.

Private debt is issued rather than sold. Private debt investment is commonly conducted by providing property owner financing, and establishing an interest rate upon which you collect.

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