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Real estate investment or investing is defined as the acquisition, possession, management, leasing, and/or sale of real estate for profit. A subset of real estate investing is Professional Real Estate development that entails making improvements to real estate property as part of a long-term investment strategy. The idea of real estate investment is to put your money to work today so that you can have more money later. Your investment profit, or return, must be sufficient to cover the risk you assume and the taxes you pay. Other expenses associated with real estate ownership include utilities, upkeep, and insurance. There are four basic strategies to profit from real estate investments that include real estate appreciation, cash flow income, real estate-related income, and ancillary real estate investment income. Holding real estate investments through certain forms of legal companies is usually considered rather than the client's name for protection and risk management.
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