Real Estate Investment: Types and Acquisition Methods

Real Estate Investment: Types & Methods

post date  Posted on 21 Mar 2025   view 2072
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Real Estate Investment: Types and Acquisition Methods

Real estate is a high-value asset with diverse forms. It can be categorized based on usage and ownership objectives as follows:

Types of Real Estate

  1. Single Houses, Twin Houses, Townhouses – Suitable for personal or family residence

  2. Commercial Buildings (Shophouses) – Used for business operations or leasing

  3. Condominiums – Popular for both investment and residence

  4. Commercial Units – Rental spaces for businesses

  5. Large-Scale Projects (Hotels and Office Buildings) – For major investors seeking long-term returns

  6. Business Lease and Retail Spaces – Ideal for entrepreneurs who do not want to invest in property construction

Methods of Acquisition and Real Estate Management

1. Direct Listing from Property Owners

  • Owners list properties directly with the company

  • The company markets and finds buyers/tenants

  • Commission fees as per agreement, with 50:50 sharing if co-brokered

2. Listing through the Company’s System

  • Property owners act as agents under the company

  • The company advertises and sources potential buyers/tenants

  • Commission fees are distributed per membership contract terms

3. Selecting NPA Properties (Non-Performing Assets)

  • The company manages the process from booking, negotiation, contracting, and title transfer

  • Service fee of 7% from buyers (4% for agents, 3% for the company)

4. Rent-to-Own Contracts

  • Suitable for buyers unable to secure bank loans

  • Requires a 15-30% deposit and monthly rental payments for three years

  • Contract extension available with an additional 15-30% payment on outstanding amounts

  • If the buyer defaults for three consecutive months, the contract is converted to a rental agreement

5. Buying and Mortgaging with Non-Bank Lenders

  • Property used as collateral for loans

  • Interest calculated upfront based on sale price

6. Sale with Right of Redemption for Foreign Property Owners

  • Provides upfront funds of 40-60% of property value

  • Interest at 15% per year or 1.25% per month

  • Service fee of 2,500 THB (non-refundable)

  • Property valuation based on real market conditions

  • Redemption period of 6 months to 1 year, extendable

  • Sellers can choose to:

    1. Redeem as scheduled

    2. Waive redemption rights

    3. Extend the sale period by paying interest in advance

Conclusion: Investing in real estate offers multiple approaches depending on the goals of buyers and property owners. Whether listing for sale, renting, or using property as collateral, selecting the right strategy enhances profitability and minimizes risks in long-term investments.
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