by: Robb Beltran
Can you really make money in real estate? You bet you can, but you better beware of what youre
getting yourself into. I have been investing in real estate for years now and I cant tell you how
many properties I have bought from burnt out landlords or young couples that really started too
Like anything the key to being successful in real estate investing is education and practice. I have
had some really good deals and others I thought were going to drag me down to the deepest of
money pits. So for what its worth heres a few observations I think will be helpful to investors
just starting out.
Beware of the late night infomercial real estate gurus when they say you can build wealth in real
estate with only five or ten hours a week. To be successful you need to be on all the time. Its all
about marketing and following through and networking and did I mention marketing. I am
astounded every time I meet a so-called investor and ask them for a card and they dont have one.
How is anyone supposed to know you buy houses or invest in real estate if you dont tell them
every chance you get?
Beware of rentals. Land lording is a pain. I dont care if you have a management company in
place or not you are always going to get calls about something being broken or some inspection
the city wants to run you through. New investors should especially be aware that almost all of the
tenant/landlord laws favor the tenants. If you want a taste of what can happen rent the movie
Pacific Heights with Michael Keaton sometime. You may never buy another rental again.
Remember peace of mind could cost you more than great cash flow.
Beware of contractors who want to be paid by the hour and not the job. Unless you are
constantly there with them, they will take you for a ride every time. Make them sign a must be
completed by clause and if they dont complete the job by the said date, your cost should be
Beware of homes sold at sheriff sales or on the courthouse steps. Yes you can find some great
deals there, but make sure you do your due diligence and always try to inspect the house first.
Judgments and out of this world repair costs could chomp away at your potential profit quickly. I
like buying the foreclosure properties after the bank gets them back. They are still As Is, but you
can always inspect them and have an out if you use a realtor. Better safe than sorry right.
Beware of taking advice from someone who doesnt own any investment property, rents or
swears he knows of the next big market if only he had the money.
I have learned and still believe you can never learn too much about something so when it comes
to building wealth though real estate education really is the key. Whether you are a beginner or a
seasoned investor the Real Estate Info Network may be just the tool to take you to your next
level of investing.
The Real Estate Info Network promotes real estate education through real estate seminars, e-
books and real estate investing. Learn how to make no money down deals, profit in foreclosures
and short sales and how to rehab your way into real estate riches.
This article was posted on September 09, 2006