When you invest in real estate, your goal is to put money to work today and make it grow so you have more money in the future. There are various ways for an investor to earn profits through real estate. Real Estate Appreciation and Cash Flow Income are two major ways in which to invest and profit from. Real Estate Appreciation, is when the property becomes more valuable due to a change in the real estate market such as over time the property location becomes more in demand or the due to upgrades in the property, and other factors and market dynamics. Cash Flow Income is when the investor earns money through owning a property in which he/she receives rent from tenants. In order to invest in Real Estate, you must first identify your tolerance for risk, decide what type of real estate investor you would like to be, identify the type of property to purchase and how you will finance your purchase.