What is Real Estate Investing?

Real estate investing is the purchase, ownership, lease, or sale of land and any structures on it for the purpose of earning money.

Buying real estateĀ is about more than just finding a place to call home. Investing in real estate has become increasingly popular over the last 50 years and has become a common investment vehicle.

Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds.

Real estate generally breaks down into three categories:

  • Residential
  • Commercial
  • Industrial

Ways to Invest in Real Estate

There are a multitude of ways to invest in real estate with any amount of money, time commitment, and investment horizon. Real estate investment options break down into two major categories: active and passive investments. Here are seven fundamental ways to invest in real estate with options ranging from intense, high-effort to hands-off low-effort.

Active Real Estate Investing (Doing it Your-self)

  • House-flipping
  • Rental Properties

Passive Real Estate investing (The Hands-Off Way)

  • Private equity fund
  • Opportunity fund
  • REITs
  • Online Real Estate Investment Platforms