So there's a lot of practical reasons why you want to invest in real estate. Even the casual observer sees home prices getting higher and higher and higher. It's kind of understood that it works, but not everyone knows the brass tacks of why you can make money with real estate.

A lot of it are tax advantages. It's very forgiving for real estate investors and the money that you make from real estate, you usually pay much less taxes on than if you made that same money at a job because there's a little bit of risk that's going to be involved in it.

It's easy to leverage, meaning I can buy a $500,000 house and put maybe 5% down on the loan. So I've only put $25,000 of my money, but when that $500,000 house appreciates by 10%, goes up to 550, my $25,000 just made me $50,000 of equity. So it's like I've doubled my money relatively quickly where it's harder to invest in other assets where you can borrow money quite as easily.