Buying and owning real estate is an investment strategy that can be both satisfying and lucrative. Unlike stock and bond investors, prospective real estate owners can use leverage to buy a property by paying a portion of the total cost upfront, then paying off the balance, plus interest, over time. Here are five key ways investors can make money on real estate. 1 Aspiring real estate owners can buy a property using leverage, paying a portion of its total cost upfront, then paying off the balance over time. 2 One of the primary ways in which investors can make money in real estate is to become a landlord of a rental property. 3 People who are flippers, buying up undervalued real estate, fixing it up, and selling it, can also earn income. 4 Real estate investment groups are a more hands-off way to make money in real estate. 5 Real estate investment trusts (REITs) are basically dividend-paying stocks.