CHAPTER 1
THE WORLD OF REAL ESTATE
INVESTING
Most people think of real estate investing as owning
property to either rent out or flip. They’re right, but real
estate investing includes much more, from those physical
money-making properties to real estate–related stocks to
real estate investment clubs.
For people who prefer a hands-off approach, investing in
real estate mutual funds, real estate investment trusts
(REITs), and crowdfunded real estate provides the
opportunity to reap rewards without the work and for much
smaller investments. All it takes to get started is a little bit
of money, some research, and a desire to build wealth.
WHAT REAL ESTATE IS
Land and Buildings
For most people the words real estate probably conjure up
houses, but real estate is much more than that. There are
dozens of types of real estate, and even more options when
you turn to real estate investing. At the heart, though, real
estate is made up of land and the buildings on it, as well as
anything growing on the land or found underground (such
as oil).
Unlike personal property, real property can’t be moved,
so its value is tied to its geography.
Who Owns America?
According to The Washington Post, 80 percent of Americans live on just 3
percent of the total available land in the United States. The federal government
is the single biggest landowner, holding 28.7 percent. That’s followed by the one
hundred biggest private landowners, who together own about 40.2 million acres
—nearly the size of New England.
RESIDENTIAL REAL ESTATE
Most people are familiar with residential real estate—it’s
where we all live. Residential real estate is controlled by
zoning laws. These regulations define the number and
types of homes that can be built in a specific area and may
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