Purchasing real estate is about more than just finding the right place to call home. As investing in real estate has become more popular, it's also become a common investment vehicle.

Although the real estate market has plenty of opportunities for big gains, especially in the Denver market, real estate is a lot more complicated to buy and own than investing in stocks and bonds. Owning property isn't always easy, but there are plenty of perks. Here are two major ways to invest in real estate.

1. Basic Rental Properties

This investment is an old practice. You purchase a property and rent it out to a tenant. The owner, the landlord, is responsible for paying the mortgage, taxes and costs of maintaining the property. There are ups and down of being a landlord but overall the benefits should outweigh the risks. 

2. Real Estate Trading

This is the wild side of real estate investment. The real estate traders are an entirely different breed because they buy properties with the intention of holding them for a short period of time then hope to sell them for a profit. Traders hold a property no more than three to four months, and may or may not upgrade the property. If the market is hot enough, a property may be easily sold in a few months without upgrades. A wise trader will examine the market and determine the fastest selling home price point, then upgrade the home to fit that market. This technique is also called flipping properties and is based on buying properties that are either significantly undervalued to maximize gains. 

Read more: Real Estate Investments: Simple Ways To Start Investing