In the investment field, real estate has always been one of the most traditional and popular asset classes. For many investors, the US real estate market is full of opportunities. Today, let's talk in detail about how many different types of real estate investments exist in the United States. After gaining a deeper understanding of these different types and their respective characteristics, you will be able to select the most suitable type of American property for investment.

1、 What to Know About the Start of Real Estate Investment in the United States

（1） Potential returns and risks coexist

Undoubtedly, every type of real estate investment in the United States contains potential returns and risks, which involve various aspects such as cash flow cycles and traditional bank loans. Before we delve into different types of real estate investments, there is an important point that you need to clarify first.

（2） The Importance of Asset Protection

In the United States, many real estate investors do not directly purchase investment properties in their own name. There are various reasons behind this, but most of them are closely related to personal asset protection. Think about it, if something goes wrong, such as finding out that the lawsuit compensation you are facing exceeds the insurance coverage you have purchased, you definitely hope that this matter will not affect your other assets. How can we achieve this? Actually, it can be achieved by establishing a legal entity specifically for purchasing your investment property, such as a limited liability company (LLC), which is a great choice.

2、 An important measure to establish a protective entity before buying a house

（1） Common types of protected entities

Almost all experienced real estate investors will establish a limited liability company (LLC) or limited partnership (LP) before investing in real estate. This is like putting a layer of "protective clothing" on your investment.

（2） The principle and benefits of asset separation

Establishing such an entity to hold your real estate investments has a significant benefit. That is when encountering some special circumstances, such as choosing to place the entity in bankruptcy, and in this case, your personal property will not be affected and will not face any risks. This practice is professionally known as' asset separation ', and its role is significant as it can effectively protect you and all your assets. And don't worry, establishing these special legal structures will cost a lot of money. In fact, they can be established with just a few hundred dollars. You can also use different limited liability companies to hold each property according to your own needs, which will make management clearer and more organized.

3、 Types and Characteristics of Real Estate Investment in the United States

（1） Residential category

Residential structures include properties such as detached villas, apartment buildings, townhouses, and vacation homes. These types of properties are mostly rented out as their main source of income. In the United States, generally speaking, the lease term for most residential properties is 12 months. For example, if you buy a vacation home in a scenic area, you can rent it out when you don't use it and receive monthly rent as a return on investment.

（2） Commercial category

Commercial real estate is mainly composed of office buildings and skyscrapers. It, like residential properties, is mainly a type of property that uses rental income as an investment return. However, a characteristic of commercial real estate is that it is not uncommon to encounter situations involving long-term leasing. This has a great advantage, which is that it can make the cash flow more stable. Even when the rent may decrease, it can protect the interests of the owners to a certain extent. However, there is a factor to consider here, which is that the market can indeed fluctuate, and rent may rise significantly in a short period of time. Therefore, as an investor, you need to always pay attention to market dynamics.

（3） Industrial category

Industrial real estate includes properties such as warehouses, car wash facilities, or other properties with special purposes. The main source of income for this type of property comes from customers who use the facility. For example, if you invest in a warehouse, businesses that need to rent a warehouse to store goods will pay you rent. Moreover, industrial real estate investment usually has some additional ways of generating income, such as adding coin operated vacuum cleaners to car washes, which can increase the return on investment for homeowners. Isn't it quite interesting?

（4） Retail category

Retail properties mainly include shopping centers and other retail stores. In some cases, in addition to receiving basic rent, homeowners can also receive a certain percentage of sales from the leased store. For example, if you have a shopping center with a clothing store inside, in addition to collecting a fixed monthly rent from the store, if the store's sales are very good this month, you can also receive a portion of the money according to a predetermined ratio, which is also a very good way to generate income.

（5） Mixed use category

The mixed use attribute is quite unique, as it combines any of the categories mentioned above into a single item. Let me give you an example. There is a California investor who took out several million dollars from his savings and found a medium-sized town in the Midwest. After seeking financing from a bank, he built a three story mixed use office building surrounded by retail stores. Guess what? The bank that lent him money rented a place to work on the first floor, which created considerable rental income for the landlord. And then the other floors were rented to a health insurance company and other businesses. Looking around at the shops, they were quickly rented out by a bakery, a membership gym, a fast service restaurant, a high-end retail store, a virtual golf course, and a hair salon. Mixed use real estate investment is very popular for those who have a large amount of assets because they have a certain degree of inherent diversification, which is very important for controlling investment risks.

I hope that through the introduction of this article, you can have a clearer and more detailed understanding of different types of real estate investments in the United States, so that you can be more proficient in making real estate investment decisions in the United States.