Types of Real Estate Investors
1. Investment Motive
The most important feature based on which we can distinguish real estate investors is their investment motive. All investors buy real estate. However, not all of them do for the same reasons. We should examine the three major types of investors on the market.
2. Degree of Control
The long term investor category can be further subdivided into two more categories. Depending on how much control they exercise over the property in question, these categories are distinguished.
3. Legal Entity
Lastly, the type of real estate investors can also be distinguished based on the type of legal entity they are. Entity plays a crucial role in determining who is liable.
Real estate market, like the other markets, is therefore complicated. Different groups of investors have different motives, and based on competition and cooperation among them, the prices of real estate are determined.