Real estate is a legal term and it comprises of land along with anything permanently affixed to the land, for example buildings or any specific property that is fixed in location. Real estate is often considered synonymous with real property. When a person acquires real estate, s/he also acquires a set of rights, including possession, control and transfer rights.

The law broadly distinguishes between "real" property i.e.; land and anything affixed to it and "personal" property - clothing, furniture, money etc; The conceptual difference was between immovable property, which would transfer title along with the land, and movable property, which a person would retain title to.

The real estate investment involves the commitment of funds to property with an aim to generate income through rental or lease and to achieve capital appreciation. It usually involves a substantial investment and a long-term one. Moreover, the real estate market can be unpredictable. This is particularly important when one goes beyond buying a home to actually “investing” in real estate.

An investor can participate in the real estate market in a number of different ways. One can aim to rent the property out to a tenant. The landlord is responsible for paying the mortgage, taxes and any costs associated with maintaining the property. But he can earn continuous stream of rent from the tenant.

Real estate traders hold properties for only a short span of time, say less than four months. Their main objective is to sell them at a profit. This process is called flipping properties. The buyer invests in undervalued or very hot properties. These owners do not invest any more money in the property before putting it back on sale.

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