Real estate investments include apartment rentals, REITs and commercial real estate.

There are many types of real-estate investments. However, most fall under two categories: physical real estates investments such as land, residential, and commercial properties; and other investment options that don’t require property ownership like REITs or crowdfunding platforms.

Traditional, physical real property can provide a high return but requires more upfront money and can be costly to maintain. Because there is a lower barrier to entry for REITs and crowdfunding platforms, you can easily invest in multiple real estate types at a fraction of the cost it would buy a traditional property. Alternative real estate investments offer the unique advantage of not moving or wearing pants to invest.

Here are five types of real estate investments you should consider:

1. REITs

The REITs are publicly traded companies with commercial real property (think offices, malls, hotels). These shares can be purchased on a stock exchange. You can invest in REITs to get access to the real estate they own without taking on the same risks as directly owning real property.

REITs must return at least 90% of their taxable income to shareholders annually. Investors can also receive attractive dividends and diversify their portfolios by investing in real estate. You can also sell your shares on the stock market if you suddenly find yourself in need of cash. A brokerage account is available for those who wish to invest in publicly-traded REITs.

2. Crowdfunding platforms

Crowdfunding platforms for real estate investment offer investors the opportunity to make high-risk investments with significant returns. Accredited investors are those who have a net worth or joint net worth with a spouse of over $1 million but exclude their home and an annual income of at least $200,000 in the past two years.

“Keep in mind that many crowdfunding platforms have a very short track record and have not weathered an economic downturn.”

Others, such as Fundrise or RealtyMogul, offer investors who do not meet these minimums, known as nonaccredited, access to investments they would otherwise be unable to invest in. These investments are often nontraded or REITs that do not trade on the stock market. Nontraded REITs are not publicly traded. This means that your money will remain invested for several years, and you may not be able to withdraw your money from the investment. Many crowdfunding platforms are new and have not weathered economic downturns.

3. Residential real estate

You can find residential real estate anywhere people live, including single-family homes, condos, and vacation homes. The appreciation of their property’s value between the time they purchase it and when it is sold, or both, makes residential real estate investors money.

There are many ways to invest in residential real property. You can rent out your spare room, or you can buy and flip a house to make a profit.

4. Commercial real estate

A space rented out or leased to a business is called commercial real estate. Commercial real estate can include a building rented out to a single company, a gas station, strip malls with many unique businesses, and leased restaurants. Each business would rent the property to the owner unless it owns it.

Both retail and industrial real estate may fall under the commercial umbrella. Industrial real estate is a property where products are manufactured or stored rather than sold. Retail space is where customers can purchase a product or service. Commercial properties have longer leases and can command higher rent than residential properties. This may result in a greater long-term income and stability for the property owner. They may require higher down payments or property management costs.

5. Raw land

Will they come if you build it? Investors often purchase the land for residential or commercial development.

However, buying land for development requires a lot of market research, especially if you develop the property. This type of investment suits those with large amounts of capital and deep knowledge about all things real property — building codes, zoning regulations and flood plains — as well as an understanding of local residential and commercial rental markets.