There is a lot to learn about the real estate industry. What is a lien? How does a land loan differ from a typical loan? Is my home considered an investment property? Fortunately we have the answers to all your questions. Read on and enlighten yourself!

Investment Property – Despite the impending real estate bubble in the United States, there are still some great areas where real estate property prices have yet to go through the roof. These areas provide you with an excellent opportunity to purchase an undervalued investment property and turn it for a profit a few years down the line. Just as you might imagine, an investment property usually refers to a house or property that a buyer purchases with the intent of making a profit. A residential property that serves as your primary home is typically not considered an investment property.

Many investment properties are purchased and then rented out for some period of time. This allows the investor to cover the mortgage payments through monthly rental checks, and then when the property has appreciated sufficiently they can in turn sell the investment property for a lucrative profit.

Land Loan – Many real estate deals are first brokered with a land loan. Typically a land loan is used to finance a large parcel of land that will be developed in the future. For instance, developers often secure a land loan to pay for the land that will later be split and divided into 10 or more parcels of land. These parcels of land will be purchased by individual home builders looking to build their custom home in the area.

Thus a land loan is not typically used to finance investment property purchases. Rather, those taking out a land loan are more likely to be land developers than just casual real estate investors.

Lien - In any case, whether your developing or investing, before you take out a land loan or buy the investment property it is wise to check the property for any outstanding liens. A lien on a property typically serves as a claim to ownership of the property should the lien holder not be adequately compensated by the seller of the property.

If you were to buy an investment property that had a lien against it already, your standing with regards to ownership of the property would fall second to those of the lien holder. That is to say, if the lien holder is not properly paid by the seller (who is indebted to the lien holder) then the lien holder would have the legal right to repossess the property from you. In such a scenario you would be the clear loser. For this reason it is in your best interest to ensure there are no liens on any property you about to purchase.

Adam Smith is an informational author for 10X Marketing, an internet marketing firm specializing in Search Engine Marketing . To learn more about Mark Victor Hansen and Robert Allen's Wealth Plan visit OneMinuteMillionaire.com.