Real estate is property that consists of land and/or structures.  Real estate investment can be one of the most safe and profitable of all investment methods.  Real estate has created more millionaires than any other investment vehicle in the United States.  There are many techniques to choose from when investing in real estate.  Each technique has benefits and disadvantages. 

The “buy and hold” technique refers to buying real estate and renting it to tenants, either residentially or commercially.  This can refer to homes, land, or business property.  There are both advantages and disadvantages to owning rental properties.  Advantages include having constant cash flow and collateral.  Disadvantages include, but are not limited to, property taxes, maintenance and the uncertainty of tenants.  Rental properties are probably not the best route for beginning real estate investors or for the cash poor.  However, rental properties can be a very lucrative venture for those in the right circumstance. 

 The “buy and sell” technique of real estate investing refers to buying and selling property for a profit.  This may mean buying a piece of real estate for a “good deal” and in-turn selling it for a small profit with no investment other than time; or it may mean buying a piece of property, investing in improvements and re-selling for a larger profit.  The timing of this technique depends on the market, the profit margin wanted and the initial investment.  Many believe that with low interest rates, this method is both the easiest and most lucrative way to begin real estate investing. 

There are many facets of real estate investment and it is extremely important to be familiar with the real estate market and how it works and changes in order to be successful.  There are many, many sources available to anyone interested in learning to invest in the real estate market.  Like all areas of investing there are no certainties with real estate.  It is important to know that even with the best of intentions, all of an investment could be lost.