This  section focuses on real property as opposed to securities like REIT's. Real property is a hedge in a diverse portfolio. Secruities offer liquidity that real property does not and real property offers amoritization and depreciation for tax purposes that that securities does not. Depending on the investor Real estate can be obtained through flipping, wholesaling houses, rehabbing, or purchasing rental properties to name a few. Another tactic of real estate investing is buying land and holding, but this is speculative. There is no guarantee that the land bought will produce any gains over the years. Below are some other examples of real estate investing.

Tax Liens/Deeds 

We have heard the stories of the high interest rates of crazy amounts like 25% and sometimes more. This depends on several factors and it is not an easy task. Research is needed so that an investor doesn't end up with a piece of side walk or a property that is landlocked. Know that there will be a handful of properties being auctioned and three times the amount of investors. Savvy investors have the upper hand over novices and usually win the bids on the best properties. 

Turnkey Real Estate investing

This is a tool that many novice investors prefer. The investor purchases rental property through a property management company. These property management companies can acquire properties below market value, then sell and manage the properties to investors. These properties are normally in low-income, distressed areas. 

Trust Deeds

​This is a vehicle that allows investors to act like lenders to builders. This could be residential, commercial, or other forms of real estate.  Returns can range anywhere between 8%-20%, but it depends on several factors. Investors usually get paid monthly until the principle is paid in full at the end of the agreement. Agreements are anywhere from 3 months to 2 years, on average about 9 months. They are sometimes used to help season the investment before a commercial bank would give a loan on it for a much lower interest.