Real Estate includes land and the buildings on it, plus natural resources like growing

crops, minerals or water. It’s immovable property and different from personal

property, which can be moved.

Direct investments can include purchasing properties and renting or selling them.

Another option is investing in a REIT, which gives you broad exposure to the market.



Residential real estate is any property that can be used as a home, such as single family

homes, townhouses and condominiums. It’s one of the two general categories

of real estate, along with commercial.

Residential landlords have more flexibility than their commercial counterparts in

choosing tenants. But, they may also face more tenant turnover and a tougher time

finding vetted renters. Because of this, many investors choose to focus on

multifamily rental properties, where they can often find tenants who are willing to

sign long-term leases.


Residential real estate transactions are typically simpler than commercial ones, and

there are plenty of financing options available for them. That includes conventional

loans, loan programs backed by Fannie Mae and Freddie Mac, and government backed

mortgages. They’re also usually cheaper than commercial properties to

purchase, making them a good entry point for new investors.



Investing in commercial real estate (CRE) is more complex than residential property

investing, and it has a much higher ROI potential. Whether you’re interested in

building your own commercial space from the ground up (also known as

development) or purchasing and operating existing assets, there are many

opportunities for individual investors. Read more


Commercial properties are leased to businesses instead of families and individuals,

and they’re subject to a broader range of laws and regulations. These include

zoning, building codes and permits.

CRE investments typically have a longer hold period than residential real estate, and

they can potentially pay out in two ways—via regular cash distributions or a share of

the final sale price. Because of this, it’s often a smarter choice for experienced

investors looking to scale their portfolios. However, CrowdStreet does not offer tax

or legal advice, so please consult with qualified professionals before making any

investment decisions.



Industrial real estate is one of the hottest commercial property subtypes and is

expected to generate tremendous returns on investment over both the long- and

short-term horizons. The sector includes manufacturing, warehousing and

distribution, “flex” space that can include office and retail uses, warehouses (large

and small), logistics facilities, showrooms and self-storage.


Consumption and trade are the primary drivers of demand for industrial real estate.

As a result, new businesses tend to choose larger industrial properties and

established businesses often want to upgrade to more operationally efficient

locations with better parking, more trucking maneuverability and lower operating



Tenants in industrial buildings are typically more willing to stay put than those in

apartments, making it less likely you’ll find yourself in a “flip” situation where you

have to invest heavily into renovating the building to attract a new tenant. And for

those not ready to buy an entire building, investing in industrial REITs that own

multiple industrial properties may be a viable option.



Buying land real estate can be a profitable investment strategy for investors who

want to invest in properties without worrying about tenant management,

maintenance and other property ownership issues. However, it is important to

understand the difference between land and real estate before making any



In legal terms, land is the Earth’s surface and everything below it down to the center

of the planet and upward to space, plus anything permanently attached to it,

whether natural or artificial. Real estate is land plus the bundle of rights that come

with owning it, including the right to possess, sell and lease it.


Real estate developers acquire land and then build houses, commercial buildings

and other structures on it to earn a profit. They may also use a method called parcel

flipping, where they contract to buy undivided land and then turn around and sell it

to another investor. This requires extensive research and a keen eye for market