The Common Law of property states that ownership of real estate is ownership of a bundle of rights. I never realised the full significance of the preceding phrase until I realised the importance of the other interests in land other than the obvious real estate related rights in the land. This article will highlight three different interests in property for us to consider in real estate investment when we next examine our property investments.

Firstly, spend some time considering the water rights. In farming and agricultural land, water is often a good resource. Imagine that you own vacant property on some land in the countryside, one thing that many landowners would consider doing is to give a licence to the adjourning farmers to gain the use of the water on the vacant land either through a well or some irrigation method. Always get a licensed water engineer to consider your water table and the relevant rules imposed by the state on the supply of water and get an attorney to fix the contract.

Secondly, assuming that you own property that have minerals such as oil or other profitable minerals under your property, you can sell the right to someone who is involved in the oil business. You want to learn all you can about the cost of selling such rights and possibly retain a percentage of all oil revenues. Get assistance in valuation and deal structuring from oil and gas attorneys and brokers who have a good feel of the market. You would note that some bankers set up oil trusts to invest in such properties and the rich invest in them to earn a monthly income and you can take advantage of such an investment opportunity if you find an oil field property or own one.

Thirdly, air rights are a valuable asset that you can sell over your property. In busy cities, where land is scarce, sometimes all the developer needs is the airspace over your present property to build over. For instance if you own a historical building and it cannot be demolished or if the land below is a vital installation to the city, then building over the real estate may be the only solution. Sometimes developers want to have a certain amount of space to sell so they may want to build over your property so as to meet that criteria or build a ring of hotel properties in an area. An example of a good use of air rights was seen when Donald Trump built his skyscraper hotel over the Grand Central Station in New York.

In conclusion, take a closer look at the next real estate investment property that you purchase today and examine it if there are any additional rights that you can sell. Making money in real estate requires a creative mind and business acumen. Learn all you can about real estate investment today and start looking for your next real estate bargain.

By Joel Teo 2006 All Rights Reserved

Joel Teo is the owner of several websites and takes a keen interest in real estate investment.
Learn more about real estate investment at http://www.realestateinvestment101.info