Known predominantly for the success of our mortgage origination activities, many of our clients are surprised to learn that real estate sales has been a part of our operation since the founding of the company in 1979. Over the years, we have represented investors in multi-family apartment complexes and various types of commercial properties with sales of over $25,000,000. However, in the early 2000’s, our Real Estate Services efforts were redirected toward helping many of our clients deal with their “real estate problems” born from the financial crisis of 2006. Remembering, of course, that at Preferred Financial, “We listen, we educate, then we perform like no one else in the industry”, we sifted through the myriad of information pertaining to foreclosures, short sales, bankruptcy and tax-related issues, and provided some general knowledge about saving or selling your property with limited consequences. This led to representing more of our clients in buying and/or selling a primary residence, income property or second home. If you are considering any of these transactions, we would like you to consider using the services of Preferred Properties (our dba for Preferred Financial Group, Inc.) to assist you. The information in this section is designed to make your real estate pursuits more comforting, less stressful and a vital part of your overall financial well-being.
Real Estate 101
Let’s begin with a definition. In its most basic sense, real estate is property consisting of land, the building and other structures permanently attached to it, natural resources above and below the land and the air space above it. Real estate (sometimes referred to as realty) is considered real property and all other property is considered personal property.
As stated above, this is the most basic definition of real estate. In reality, however, the term “real estate” encompasses a great deal more than simply differentiating between real and personal property. In a broader sense, “real estate” is a valued personal asset/investment as well as a professional business for many.
As a personal asset, real estate can bring significant satisfaction to the owner in terms of comfort, safety, security, enjoyment and income. Oftentimes, it represents the owners’ greatest source of wealth and savings. Here is how real estate ownership is typically categorized:
- Primary Residence
- Second Home
- Investment Property
- Real Estate Investment Trusts (REITS)
As a business, real estate is a very significant part of our national economy, collectively contributing over a trillion dollars, or about 6%, to our Gross Domestic Product. Here are the three most recognized businesses within the real estate industry: