The real estate industry can be complex, especially if you’re just starting out as an

investor or buyer. The good news is that there are plenty of resources available to

help you understand how it works. The value of real estate tends to rise over time,

so investors can make a profit when they buy and sell properties. Real estate agents

and brokers capture a portion of this profit by selling their services to those engaged

in real estate transactions.


Real estate is land and any buildings or structures on it, plus the air rights above it

and the underground rights below it. It can be owned by a person, a company or a

government. People buy and sell real estate as an investment, to live in or to

operate businesses. Real estate can be categorized as residential, commercial or

industrial. Read more

A property’s value depends on a number of factors, including location and condition.

It can also be affected by the economy, which is why many investors watch

economic indicators to see what’s happening. For example, if new home

construction is increasing, it’s a sign that the housing market is strong. On the other

hand, if home closings are decreasing, it’s an indication that the market is



As you might expect, there are a lot of different ways to invest in real estate. Some

people choose to become real estate developers, which involves buying and

improving land. These developers make a profit by adding value to the land through

building and improvements, and they often sell or lease the finished product to end


Investing in real estate can also be done through passive investment arrangements,

such as REITs and real estate funds. These arrangements are typically administered

by a real estate management firm or investment trust, which collects money from

passive investors and manages the investments on behalf of its shareholders. This

type of investing is less hands-on than active investing, but it can still provide

lucrative returns.


When it comes to buying and selling homes, real estate agents are a great resource

for individuals, companies and investors. They can help them navigate the complex

process and find the best deals. They can also advise on the pros and cons of

different types of property and locations.

Buying and selling real estate is an important financial decision that shouldn’t be

taken lightly. It’s important to do your research and choose a reputable agent who

will protect your interests. For more information, check out NerdWallet’s guide to

choosing the right broker. And remember, to avoid any surprises down the line, it’s

always a good idea to get pre-approved for your mortgage before you start

searching for homes. This will save you time and ensure that you’re ready to move

when the right home comes along.