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. Investing

    A Guide to Real Estate Investing

    Investing in real estate is a popular choice for good reasons, but it's more complicated than owning your typical stocks and bonds.
  2. Investing

    Flipping Houses: Is It Better Than the Buy and Hold Strategy?

    Real estate investors can choose to flip a property or hold it. Find out which strategy may best for you.
  3. 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.
  4. Financial Advisor

    How to Invest in Real Estate Without Buying Property

    Investing in real estate can require more capital than most investors have available, but there are options to invest in real estate for less.
  5. Investing

    A Career In Real Estate Portfolio Management

    Find out why this job more closely resembles the role of a CEO than an asset manager.
  6. Investing

    Invest In Real Estate With $1,000 (Or Less)

    Here are some options to get you started in real estate for a fraction of what it would cost to buy an actual property.
  7. Investing

    The Risks Of Real Estate Sector Funds

    Discover the risks and rewards of investing in real estate funds, as well as some of the best and worst performers.
Frequently Asked Questions
  1. What is the difference between yield and return?

    While both terms are often used to describe the performance of an investment, yield and return are not one and the same ...
  2. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  3. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  4. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
Trading Center