Investment real estate refers to the practice of investing in properties with the goal of generating income and potentially increasing one’s wealth over time. This can include purchasing rental properties to generate rental income, investing in commercial real estate to benefit from long-term leases, or participating in real estate crowdfunding platforms to invest in larger real estate projects. Real estate investment can offer the potential for steady cash flow, long-term appreciation, and diversification of investment portfolios.

An investment property is any piece of real estate you might own other than your principal residence. It may take the form of a condominium, a townhouse, single-family home or vacation cottage on a lake. There are also opportunities in commercial real estate, such as condo-style offices, industrial property and retail space.

Adding real estate to your portfolio could be a smart choice. You can diversify your investments and create a solid stream of income that could carry over into retirement. But, as with any investment, you want to know what you’re doing. The gains on real estate investing can be immense. But so can the losses. And while you may feel motivated in the beginning to flip homes and manage rental property, the maintenance and upkeep, can get old fast.