Real estate is a type of property that includes land and anything permanently

attached to it like houses or buildings. The real estate market includes properties for

residential, commercial and industrial use. It also encompasses the construction of

new buildings and improvements to existing ones. Investors are drawn to real estate

because it often appreciates in value over time and provides a steady stream of

income. Many people also invest in real estate as a way to diversify their portfolios.


When investing in real estate, it’s important to understand how the industry works.

There are several exit strategies you can employ to make money off of your

investment, including wholesaling, rehabbing and buy-and-hold strategies. You can

also find lucrative real estate opportunities by purchasing and holding rental



The most common type of real estate is residential. This category includes both new

construction and resale homes, as well as apartment complexes and single-family

dwellings. It can also include portable dwellings like houseboats.


Residential real estate is usually a safe bet for investors because it’s easy to

understand and manage. It’s also a great place for beginners to start because it

doesn’t require as much cash up front, as other types of investments do.


When a person purchases a home, they typically take out a mortgage to cover the

cost of the purchase. This loan is secured by the home and is paid off with regular

payments. When a home’s owner dies, the heirs inherit the property and can either

continue to pay on the mortgage or sell it for a profit.


In addition to homes, other types of residential real estate can be found in

condominiums and townhouses, as well as duplexes and vacation homes. It’s also

possible for an individual to rent out a part or all of their home, which is commonly

known as a “flip.” Also read


Commercial real estate is used for business purposes and includes shopping centers,

strip malls, hospitals, hotels, offices, and warehouses. It’s also common for

apartments and industrial buildings to be considered commercial (even though they

are leased out to tenants for housing) because they generate income for their



Lastly, land and other natural resources are considered real estate as well. This can

be undeveloped land or land that’s been assembled and rezoned to allow for

development. The resale value of land can also depend on how desirable the

location is. For example, an area that gets a lot of traffic or has easy access to public

transportation can increase the value of its homes and other forms of real estate.

As a result, the real estate market is an integral part of the economy and contributes

to jobs in construction, banking, lending, insurance and more. The growth and

decline of the market is also a leading indicator for the overall health of the

economy. It’s why many analysts and investors keep close watch on the latest

figures for housing starts, as they can offer a general sense of how the economy is