1. Exploring Real Estate Investments: Introduction
  2. Exploring Real Estate Investments: What Is Real Estate?
  3. Exploring Real Estate Investments: Types Of Real Estate
  4. Exploring Real Estate Investments: Characteristics Of Real Estate Investments
  5. Exploring Real Estate Investments: Advantages And Disadvantages
  6. Exploring Real Estate Investments: Buying And Owning Real Estate
  7. Exploring Real Estate Investments: Finding Investment Value
  8. Exploring Real Estate Investments: Conclusion

By Ian Woychuk, CFA

We've covered quite a few points throughout this tutorial. Below are some of the main points that were made along the way:

  • Real estate investments fall into one of the four following categories: private equity, public equity, private debt and public debt. Your choice of which one to invest in depends on the type of exposure you are seeking for your portfolio.
  • You can invest in either income-producing properties or non-income-producing properties. Any leased property is income producing, and vacant properties are non-income producing. You can still earn a capital return on a non-income producing property, just as you would on an investment in a home.
  • The major types of investment properties are offices, retails, industrials and multi-family residential properties.
  • Real estate can produce income (like a bond) and appreciate (like an equity).
  • Real estate is tangible, so it requires ongoing management. On the other hand, you also have an increased ability to influence the performance of a single investment as compared to other asset classes.
  • Some of the benefits of adding real estate to a portfolio include: diversification, yield enhancement, risk reduction and inflation-hedging capabilities. However, real estate also has high transaction costs, can be difficult to acquire and it is challenging to measure its relative performance.
  • Buying real estate requires substantial due diligence to ensure that you're getting what you expect after you close.
  • The way to determine the value of your property (other than actually selling it) is to have it appraised by an accredited appraiser.


Related Articles
  1. Personal Finance

    Can Real Estate Stabilize Your Portfolio?

    History suggests that real estate can provide diversification and a hedge against inflation.
  2. Investing

    Exploring Real Estate Investments: Advantages And Disadvantages

    By Ian Woychuk, CFA As we discussed in Chapter 1, real estate is usually held as part of a larger portfolio, and is generally considered an alternative investment class. Real estate fits well ...
  3. Investing

    Exploring Real Estate Investments: Characteristics Of Real Estate Investments

    By Ian Woychuk, CFA One of the beneficial features of real estate is that it produces relatively consistent total returns that are a hybrid of income and capital growth. In that sense, real estate ...
  4. Investing

    Exploring Real Estate Investments: Types Of Real Estate

    By Ian Woychuk, CFA In the previous chapter, we discussed the various categories of available real estate investments, including direct property ownership, mortgages, and debt or equity securities. ...
  5. Personal Finance

    Exploring Real Estate Investments

    Discover how owning properties can give you a roof over your head or a check in your pocket.
  6. Investing

    Exploring Real Estate Investments: Introduction

    By Ian Woychuk, CFA Chances are, when you think about investing in real estate the first thing that comes to mind is your home. For many people, their home is the single largest investment they ...
  7. Personal Finance

    Flipping Houses: Is It Better Than Buy and Hold?

    Real estate investors can flip a property or use it for cash flow. Find out which will work in your neck of the woods.
  8. Investing

    Exploring Real Estate Investments: What Is Real Estate?

    By Ian Woychuk, CFA The most basic definition real estate is "an interest in land". Broadening that definition somewhat, the word "interest" can mean either an ownership interest (also known ...
  9. Financial Advisor

    Why Real Estate is a Good Fit for Older Investors

    Real estate investing can be a good fit for older investors. Here are three reasons why.
  10. ETFs & Mutual Funds

    Add Some Real Estate To Your Portfolio

    From REITs to owning your own home, find out how diversify your portfolio with real estate assets.
Trading Center