Land and building purchases and the additional costs of improving them are financed with two key components of capital. The first is debt, typically borrowed from a bank and the second, since no bank will lend 100% of the project cost, is equity, rounded out by investors. This is called the capital stack.
A major distinction between these two types of capital is that debt just earns an interest rate, and equity earns a share of the profits.
Adam Gower of Gower Crowd explores the concept of equity and what it might mean to you in this short video. Take a look!