There are a multitude of ways to invest in real estate with any amount of money, time commitment, and investment horizon. Real estate investment options break down into two major categories: active and passive investments. Here are seven fundamental ways to invest in real estate with options ranging from intense, high-effort to hands-off low-effort.

  • House-Flipping Short Sales
  • Active Real Estate Investing (Doing it Yourself)
  • Passive Real Estate Investing (The Hands-Off Way)
  • Rental Properties
  • Private Equity Fund
  • Foreclosures
  • REITs


Real estate has a track record of strong performance. Real estate investing offers the potential to earn significant returns and add meaningful diversification to your portfolio. When managed wisely it can become a valuable source of cash flow in your investment portfolio. As with any investment, real estate investments require you to understand and weigh the risks and potential rewards before beginning. Depending on which way you choose to invest in real estate, you’ll need varying amounts of time, beginning capital, knowledge, and patience