In addition to the investment in and purchase of your principal place of residence, typical real estate investments may include: real estate developments; land developments; private real estate fund investments; rental real estate acquisitions; purchasing a “fixerupper” and “flipping” it for profit, etc. Each real estate investment type involves a certain amount of risk based upon the amount of cash needed to finalize the transaction. You may also need to spend cash after the transaction, spend time managing the project, and spend time holding the asset, so you must analyze each potential investment to see what return you may earn on the investment, as well as the hidden cost of using your time to manage the investment.