How to Invest in Real Estate

The real estate industry includes the buying and selling of land and its buildings.

Typically, these transactions are regulated by local and state laws. Real estate also

encompasses an array of services, such as development and merchandising. Real

estate investors can choose to focus on residential, commercial, industrial, or raw


Residential real estate refers to housing for people. This category can include singlefamily homes, townhouses, condominiums, and multifamily rentals that have five or more units. Residential properties generate income through rent, which can increase over time due to inflation and demand.

Commercial real estate refers to any property that is used for business or workplace

purposes. Common examples of commercial property are office buildings, strip

malls, shopping centers, hospitals, and retail stores. This category can also include

hotels and parking facilities. Industrial real estate is land that is primarily used for

manufacturing and storage, like factories and power plants. Finally, raw land is a

catch-all term for undeveloped land or vacant land. For more info


Investing in real estate can be a great way to diversify your portfolio and make

money, but it’s important to understand the risks involved. While many investors are

willing to take on the risk, others may be turned off by high prices and the need to

have a substantial down payment. Fortunately, there are ways to get involved with

real estate without spending a lot of money.


When choosing a brokerage, it’s important to consider your goals and objectives. Do

you want to work with a large national firm, or are you looking for a more intimate

setting where you can interact with clients and other agents? You might also

consider a smaller, locally owned firm. While they might not have the resources of a

larger firm, they can offer personalized support and more specialized knowledge to

their clients.

As you search for an agent, it’s important to read third-party reviews. Sites like

Zillow, Trulia, Redfin, and Google can help you find an agent with a good track

record. Also, look at their social media profiles and website to get a sense of their

professionalism and customer service.


When deciding on an exit strategy for your real estate business, consider your risk

tolerance and the market conditions. For example, if you’re a beginner, you might

want to focus on wholesaling, which can give you experience and the opportunity to

learn the market before investing in rehabbing or buy-and-hold strategies.

Lastly, decide whether you’re ready for the illiquidity of real estate investments, which can keep your funds locked up for longer periods of time. If you’re looking for a more liquid investment, consider a crowdfunding platform that offers shorter terms. Our top pick, Fundrise, requires only a $10 minimum initial investment and is accessible to accredited investors. The best platforms also offer diversified real estate portfolios and an easy-to-use platform for investing.