Real Estate EssentialsReal estate as a term refers to any piece of land and the developments surrounding it. Any movable developments on the land, though, are not part of the real estate. They are just part of the current owner's property and can be moved or sold whenever he wants. Real estate has its own law, which deals with issues concerning the purchasing and development of land. Real estate falls into two categories - residential and commercial. The commercial category refers to the business side of real estate and leads to buying and selling. This division has its experts dealing with the different aspects of real estate as business - the person who estimates a land's worth is an appraiser and the broker is the one negotiating between the seller and the buyer. This whole process is often assisted by an agent who helps during the buying or selling. He helps the broker to find a buyer and he also helps buyers to find the right property for them. The agents are paid a commission. In order to raise the price of a property, the land can be developed by land developers. Often owners put a property manager in charge of their property. Property managers take care of the property's good condition at all times. Residential real estate, on the other hand, is property which is ready for occupancy and this division includes family homes, town houses, flats and condominiums. Real estate as an investment has one task - to make good profit. The investment side includes renting, selling, buying, leasing and owning a property. Investors manage their property the best way possible in order to attract buyers or tenants. The more a property can offer to its buyers or tenants, the higher its price gets. Investing in real estate is not easy, because you need a considerable capital to start with. Many investors take a mortgage loan in order to speed up the process. Any kind of investment has its risks, but when it comes to real estate an owner should be extra careful not to lose the whole property altogether. One of the risks is an insufficient cash flow. You may own a good property, but the financial situation of most people nowadays is much worse than it was a few years ago. People are reluctant to buy and usually choose a small home to rent for a price they can easily afford. This often leads to less cash flow to the owner than initially expected. Another risk is encountering real estate fraudsters, who pretend to be agents and offer "ghost houses" or damaged ones. If you know what you are doing and make sure you develop your property to its best you can make a very high profit out of it. You can look for properties in listings online or you can contact an agent, which can look for the exact place you want to invest in. Even if you don't have the best of luck with tenants or buyers, keep in mind that houses' prices usually double in ten years' time, so you can always take the time to renovate the place and make it more appealing. Investing in real estate is a smart decision. It does take time, money and courage, as well as lots of patience, but it can be really rewarding. With a fixed rate mortgage you have some security in terms of paying back. No other investment requires that much time and devotion as real estate and that is what makes it exciting.