Real Estate Investing

by Wilshire Finance Partners

Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Real estate investing can include such components as trust deed investing, lease options, buying foreclosures, real estate investing trusts (REITs) and creative financing. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent. Investors can benefit by ongoing income (from rent, for example) and/or the ultimate sale of the real estate property.