| Are you interested in the lucrative real estate | | | | remain. |
| market? Have you watched the Do-It-Yourselfers on | | | | KNOW YOUR MARKET |
| TV who purchase a home, renovate or upgrade, | | | | You're not buying for yourself so spend time noting |
| then resell it for a profit of more money than most | | | | the trends in the market. You can often find data in |
| people make in a year? | | | | the local real estate papers listing the percentage of |
| It sure is tempting, but what are the pitfalls? What | | | | growth for various properties in the area over the |
| should a new investor know BEFORE putting money | | | | past year. |
| into real estate? | | | | Keep an eye on what's moving quickly through the |
| There is one mantra that successful real estate | | | | market and what features are promoted in new |
| investors live by: "buy low - sell high". How can you | | | | constructions. You can use this information to make |
| apply this to your investment strategy? | | | | your upgrades as market friendly as possible. |
| DON'T GET OVERSOLD | | | | Be careful not to make the mistake of renovating to |
| New investors can easily get caught up in the sale. | | | | your personal tastes. Use neutral palettes and current |
| Without experience or a background in real estate | | | | styles to appeal to the broadest market. |
| you may think your instincts are good and quickly get | | | | KNOW YOUR BUDGET |
| in over your head. | | | | The more time you spend researching the costs of |
| Investment properties need to be undervalued and | | | | your venture, the higher the profits you will see. |
| YOU need to do your research first. Don't plan to | | | | Know how much you can spend, the price of |
| buy without spending a lot of time comparing values. | | | | materials and labor and the time frame to have it |
| Your goal is to purchase an undervalued property | | | | completed. Some experts would tell you to double or |
| which can take time and experience to spot. | | | | triple that amount. In any case, the more research |
| The best way to determine the true value of a | | | | you do the more accurate your budget will be. |
| property is by comparing similar properties and noting | | | | Don't get swept away in the process either; |
| the common features. The properties MUST be in | | | | concentrate on the most profitable renovations. |
| the same area since location can drastically affect | | | | Kitchens and bathrooms are important. Adding French |
| price range. | | | | doors or updated lighting can also be a good |
| Take note of the features and failings of each | | | | investment. A fresh coat of paint is a must. |
| property, how long they're on the market and the | | | | Investing in real estate is a financial business. Plan |
| price they sell for. Once you have a good | | | | your investment like a business; make well |
| understanding of the value of properties you will be | | | | researched decisions, stick to a budget, don't let |
| able to tell when a property is undervalued - perhaps | | | | personal preferences get involved, and you're ready |
| because a quick sale is needed or the seller is | | | | to make some money! |
| inexperienced. Don't hesitate to barter for the best | | | | Those who only know one or two facts about real |
| deal possible. | | | | estate investing can be confused by misleading |
| I trust that what you've read so far has been | | | | information. The best way to help those who are |
| informative. The following section should go a long | | | | misled is to gently correct them with the truths |
| way toward clearing up any uncertainty that may | | | | you're learning here. |