Even in today's shaky market, investing in realestate can be a rewarding and profitable experience. Before diving in to the investment game, it's imperative to have a solid understanding of the process involved. After all, investing in realestate requires money and you'll want to learn everything you can before shelling out your hard earned cash.

Basically, there are two ways to make money with realestate investments. You can either purchase real estate on your own or invest in realestate financial instruments. These might include purchasing shares of real estate investment trusts (REIT) or stocks of housing developers.

While there are many different types of realestate, most are categorized as either residential or commercial. Residential properties include single dwelling homes, condominiums, town homes, patio homes, and mobile or modular homes. These properties are used as family homes, second homes, vacation homes or rental properties.

Commerical realestate includes multi-family properties such as apartment buildings or condominium complexes. Office buildings, office complexes, retail shops, restaurants, shopping malls and strip centers also fall into the commercial category.

Vacant land is a lesser known commercial realestate investment that can yield a lucrative profit. Vacant land can be used for farming or ranching, or to erect office buildings or housing developments. If you are seeking this type of realestate investment, look for vacant land located in rapidly growing areas or those expected to grow within a few years.

The most popular type of realestate investment is residential property. A large percentage of investors prefer to invest in single dwelling homes which are used as rental property. Although rental properties can yield a good return on investment, it can take years to receive it. In the meantime, you also have the headaches of being a landlord.

Instead of investing in rental realestate, consider investing in rent-to-own properties. In this type of arrangement, the investor rents the home to an individual for a specific period of time. Generally, a percentage of the rent is applied toward the purchase of the home. After three to five years, the tenant obtains traditional financing and purchases the home for a set amount. If the tenant is unable to complete the purchase, the contract becomes void. You can then decide to sell the property or engage in another rent-to-own contract.

Rent-to-own realestate offers the opportunity to turn a profit in a shorter period of time. However, legal documents are required and specific bookkeeping records are required by the Internal Revenue Service.

Another popular choice of realestate investment is known as house flipping. This type of real estate transaction involves purchasing a home in need of repair or renovation. Typically, the house is purchased under market value. The investor makes repairs and renovations, than sells it within a short period of time. Typically, the entire transaction takes place within three months or less.

Although house flipping can yield a tidy profit, it's not without risk. If you decide to go this route, take time to educate yourself about the market where the property is located. Otherwise, you could be sitting on the property for quite some time.

Realestate investing can be a lucrative and rewarding experience. Those who are successful are the ones who obtain education through seminars, home study or higher learning institutions. Arm yourself with knowledge and you could amass a fortune in the realestate game!