Real estate is an investment that consists of land and improvements. It includes houses, commercial buildings, factories and warehouses. In addition, it also includes the rights to use natural resources like minerals and water.

Investing in real estate involves purchasing, selling or leasing properties that generate income and increase in value over time. The key is to understand how the property’s economic or physical characteristics impact its value and how that value can be leveraged to meet your financial objectives.

Residential (Homes, Condos, Townhomes)

Residential real estate is made up of single-family homes and multifamily homes. It can include resale homes, new construction, vacation homes and high-value properties. It is often facilitated by a licensed real estate agent or broker and financing options depend on the type of property you are looking to purchase.

Commercial (Offices, Shopping Centers, Strip Malls, Medical Buildings)

Businesses use commercial real estate to sell products, provide services and generate income. It can also be used to store inventory and other assets, like warehouses and offices. Read more

Industrial (Factories, Warehouses)

The industry of industrial real estate starts with raw land that may be subject to municipal approvals and development. After the property is entitled, developers work to construct and rezone it to maximize its value and get it stabilized (typically meaning that it is at least 95% occupied). Once stabilized, asset managers help fill the properties with tenants and get them cash flowing.

Trends in real estate

Whether or not you’re looking to buy or lease a home, investing in real estate is one of the best ways to make money in the long run. Unlike stocks or bonds, the returns on real estate are more predictable and are typically fixed over time, making them a solid long-term investment.


The first thing to consider when assessing the value of real estate is whether it’s located in a desirable location and whether there are improvements that can be made on the property. This will help determine the value of your investment and can influence the market price, if you decide to sell.


Any permanent additions to a piece of land that can affect the value of the property are called improvements. These can include building sidewalks, streets, water and sewer systems, and other permanent amenities that add to the value of the property.


There is a limited number of pieces of land that are available for sale at any given time. This can make it difficult to find the right property, which is why there are a variety of strategies that are used to find and buy real estate in a specific area.


Location is a major factor in real estate, as people prefer certain areas over others based on a variety of factors, including employment rates, the local economy, crime and transportation facilities. It’s also important to remember that the value of a piece of land can change dramatically depending on the area it is located in.