Real estate investors rarely use their own cash to buy properties outright. Instead, they typically cover the down payment on the property with their own cash and finance, or borrow, the remainder of the purchase price.

There are six main types of properties to consider when investing in real estate:

Each type of property presents a unique set of features and responsibilities—from financial to personal

The decision to begin investing in real estate is more complicated than the decision to buy a stock or a bond. Real estate investing requires an up-front financial commitment plus ongoing expenses and personal responsibilities that other investments simply don’t require. Before you begin, make sure you understand and can fulfill the financial and personal obligations that real estate investing demands.

Investing in real estate means buying, managing, and selling property consisting of land and/or buildings, which can all be defined as real property. A real estate investor is someone who purchases real property for the purpose of generating income by renting the property or eventually selling it at a profit.