Many people have been fortunate in real estate and moved on to become very successful, others have not done so well. We have all heard the fairy tale stories of millionaires created, we all have that one uncle that has been in the real estate game, we have all seen the late night infomercials claiming the rags to riches stories. If it were really that easy...

Just as easy as millionaires are made in the real estate market, life savings, fortunes, and investment empires can be lost as well. Someone who can understand the risks and how to avoid them can lead you through a potential mine field in real estate.

REITs (Real Estate investment Trusts) have lost hundreds of millions investing in real estate. Builders and developers have closed shop playing in the real estate game. Projects have stopped mid construction as loans have run out.

The difference in successful real estate investing is understanding the factors that
identify a good investment and having a qualified professional advising you. You need someone to guide you through the process to get you the deal. Then do you hold it as investment? Do you lease it? Do you flip it? When is the big payoff, in 6 months or in 6 years? Are you working with someone you trust to handle one of the largest investments in your lifetime? What is thier personal track record as an investor? It just so happens you are reading one of his articles at this moment.

One of the most critical steps to getting started on successfully investing in real estate is choosing the right professional to work with to evaluate your level as and investor, discuss your goals, and design a personal strategy to fit your needs.

It does not matter if you are a seasoned investor with a multi-million dollar portfolio or a first time buyer. If you are buying any kind of real estate, you are an investor. A home is one of the largest investments we make in our lifetime. Nobody likes to lose on thier investments.

We all know the current real estate market is down and there are many foreclosures. For my clients and myself, that means real estate buying opportunities and investments are out there ready to snap up and they are going fast. Some deals are done in minutes before they ever hit the open market. Some deals are done within hours after they do go onto the market. A fellow associate told me it was reported there will be up to 800,000 foreclosures expected before the end of the year.

Currently the affordability index of homes in Houston is at an all time high. Interest rates are at historic lows. There are tax credits, housing assitance, and incentives that can save you up to $18,000 off the price of a home. More foreclosures are expected to come onto the market. There are real estate auctions going on across the country. I'm skeptical about buying real estate for pennies on the dollar which is impossible in our local market.

I predict more great deals comming onto the market that will only last for a few hours. I predict as the economy drags on there will be more renters looking for housing to lease rather than to purchase. As mortgage requirements become harder to qualify for, there will be less buyers and more renters. The expected buffet of real estate bargain deals will draw investors out in masses in a feeding frenzy.

So what qualifies a real estate investment as a great deal? Every investment is a degree of speculation. Having the most current data, analysis tools, and resources a professional Realtor can provide is essential to developing the investments potential. Like I said fortunes are made, and fortunes are lost. What is your strategy?

In this series of articles I will go over the basic principles of real estate investing to get started.