Invest is a term that is used to describe a situation where a person purchases or acquires an item be it real estate, stock, or commodity with the intent and plan that the acquired item will generate an income and appreciate in value at some time in the future. An investment, from an economic perspective, occurs when one purchases or acquires an item or items that are not immediately consumed or sold, rather saved, maintained, and used to create future wealth. Common examples of real estate investments include residential or commercial properties. Today many investors are holding their money in residential properties to be purchased, repaired if need be, and rented out to tenants on a monthly basis. Tenants pay rent to the property owner (investor or management firm) each month who in-turn maintains the rental, and pays the insurance, mortgage, and property taxes. In the interim, due to increasing supply and demand for real estate and overall market conditions, the value of the residential investment property often increases. If the owner wished to sell the property, he has the ability to sell it for more than he paid for it, thereby making a profit. Consequently, when one Invests in something, he or she places something of value (usually money) to acquire, use, or buy an item that possibly could provide a positive return such as an income stream, appreciated value, or capital gain.

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