For some hearing, the idea of investing in real estate can be a bit intimidating because of the lack of knowledge, experience, and capital needed. Understanding and learning more about the 3 broad categories is a great place to get started.

Most beginners get their start purchasing or investing in residential real estate the risk and capital needed is usually low compared to the other categories. Residential consists of single-family and multi-family dwellings that are either owner-occupied or non-owner occupied. This includes condos, town/rowhomes, undeveloped land, and houses.

Warehouses, office buildings, and retail buildings are nonresidential structures that fall under Commercial real estate. You will need access to or the ability to raise capital as costs are typically higher to acquire these types of properties. Commercial real estate returns are based on their profitability per square foot.

Industrial real estate includes farmland, business parks, factories, and mines. Typically larger in size and may be located near transportation hubs harbors and rail systems.