Types of Investments

Investments can be evaluated on the gross or net basis. Your net investment is the gross investment minus any depreciation of the overall value of the investment. The same is true for an investment property. But as property normally increases in value even with minimal care, you would hope that you will never need to account for a depreciation in the property value.

Another classification for investments is a private investment or public investment. A private investment is made by an individual or a group of individuals while a public investment is made by the government. You would be involved in a private investment which is made with the expectation for profit. These investments are influenced by good investment of capital and the interest rate. The goal for any such endeavor is to make a return on the investment. A public investment would be for things such a public buildings, roads or public parks. These investments are not expected or entered into for profit, their goal is to provide social use and good to the community.

For the most part, if you are choosing to pursue real estate investment, you are doing so as an individual or as a member of an investment group. The sole purpose of the investment is to make a profit for you and the other investors. In addition, your investments would almost always be private. The only reason to make a contribution to a public investment would be as a charitable contribution for tax purposes. This could be a donation to a park fund for improvements in your community.

When you are looking for a real estate investment property in Phoenix, you will be seeking a private investment, either as a sole owner or a member owner. Visit www.azrealestatewholesale.com to learn more about using the services of a real estate professional to guide you in your search. Their guidance and experience in purchasing and selling properties as an investment will be a good way for you to learn the process and the industry. Using a real estate pro for your first few transactions insures that you have a great opportunity to realize a strong return on your investment.

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