- The buy and hold real estate investor commonly seeks to acquire investment property at either fair market value or below market value pricing. They then hold the property in pursuit of appreciation over the long-term and usually plan to sell the property at a profit some time in the future.
- Rehab real estate investors seek to buy distressed properties in need of repair and renovation at a discount to fair market price due to their condition. They most commonly perform the renovation and repairs on the property in a short period of time and then place the property for sale, hoping to sell the property at a profit versus the money spent on acquisition and repairs.
- The cash flow real estate investor acquires investment property with the express purpose of generating a positive cash flow from the property on a monthly or annual basis. This means that they seek to make money above and beyond the cost of ownership (mortgage, property taxes, management fees) and maintenance. These investors are commonly purchasing either commercial or residential rental property.
- Many people prefer to invest in real estate through REITs---Real Estate Investment Trusts. These are either publicly or privately traded "pools" of real estate entities or individual properties. Like a mutual find of strictly real estate holdings, many people feel this is a preferred way to invest in real estate as they perceive it as less risky than owning investment property.
- Many real estate investors choose to meet their goals by investing in trust deeds, also known as hard money loans. These are private mortgages funded by private investor dollars and commonly rage in term from less than a year to three years, though terms vary. Investors earn a set rate of return and are, essentially, funding a mortgage to a private individual or entity for a set term.
