What does "real estate investment" typically involve?

Real estate investment typically involves using capital to purchase properties with the intention of generating profit, either through appreciation in property value or income through rental. This approach embodies the core idea of investing, where the primary goal is to allocate resources (capital) into assets that are expected to yield a return over time.

While renting properties to tenants is certainly a key strategy within real estate investment, it's more of a method of generating income rather than the overarching definition of the investment itself. Similarly, flipping houses for quick sales represents a more specific strategy that involves short-term gains rather than the broader definition of real estate investment. Investing in real estate stocks, while related to the real estate market, is not directly investing in physical properties and thus diverges from the traditional understanding of real estate investment.

Therefore, using capital to purchase properties for profit encapsulates the primary essence of real estate investment, as it focuses on acquiring tangible assets that can appreciate or generate income.