Investing in real estate has long been a proven way of accumulating wealth. There are some investors who make their millions by speculation and a deep understanding of the changing real estate market around them. Others fall into the category purely by luck! It was a job transfer, where they grew up, inheritance, etc. Regardless of the basis, the common denominator is real property. A way to diversify your assets from the often volatile stock market.

There are as many different types of real estate investors as there are mutual funds to invest in. You have those who flip property, foreclosure sales, auctions, speculate, residential, commercial, industrial, raw land, rental income, etc. The list goes on and on. For most conservative investors who make their money in a specific profession, the types of real estate investments that interest them are typically a little less exotic. It might be making the transition from renting into buying a primary residence or a second step could be the purchasing of a second home.

What I would propose more parents think about is the possibility of purchasing a second home for their son or daughter while they attend college. On the scale of risk aversion, this type of real estate investment is fairly safe. First of all, it fulfills an immediate need. Either way, money will most likely be spent on rent for the 4-5 years that kids go to school these days. And that is simply for a bachelor's degree, not including the possibility of an extended masters program. If the money parents typically spend on rent goes towards a mortgage payment, the possibility of walking away with an appreciated asset is significant.

Managing rental property might not be too appealing for the introductory level investor, but it doesn't necessarily equate to a negative experience. In fact, there are several management companies that can assume the role of property management for an average fee of 7-8% gross monthly income. However, don't miss the opportunity to let your son or daughter learn how to manage the property investment while they are living there. In fact, there is an excellent real estate investing guide specific for college students that I've read recently called, "College Real Estate."

One thing is for certain though. There is plenty of room for growth in the Texas real estate market. And to take that one step farther, I would submit to you that one of the next big areas of real estate growth will continue to be the acquisition of off campus student housing by both large investors and financially savvy parents looking for a return on their investment. As the number of college students enrolled in America grows 20% over the next 10 years, so to will the demand for student housing.