So many investors have gone back into hibernation now that the market has turned south. These are investors who got in at the peak of the market and based their "investment" on appreciation. Appreciation is the LAST factor you should be buying investment property for. In fact, TRUE real estate investors dont factor appreciation in their decisions to purchase at all.
There is still a lot of money to be made in a wide array of real estate investing. If you want to flip houses, wholesale, be a hard money lender....anything. You have to determine criteria that is important to you. Below is a non-exclusive list that should be included in everyones criteria:
Understand the numbers
Dont just spend 3 hours at an investment seminar for someone to give you a pep talk to invest in a type of real estate that made you rich. You have to TRULY understand the type of investing you want to go into, and be sure to factor what you will do if something goes wrong, all your basis should be covered. I suggest taking out a local area expert to lunch to pick his brain and begin your networking opportunities.
Build relationships
No matter what form of real estate investing you are going into, you will always have to build relationships. So start an excel spreadsheet, and everytime you talk to someone, log the conversatation.
Risk Reduction
Real estate investing doesnt need to be high risk. In fact, there are many types of real estate investing that are safe. Be sure you educate yourself on ways to reduce all types of risk, including understanding tax write-offs.
Be prepared.
Real estate investing is all about preparation. Planning your strategy effectively is the difficult part, implementing it is the easy part. be sure to set criteria you will live by. You WILL be presented with opportunities that looks good that are outside your chosen niche and criteria, pass these along to a fellow real estate investor. Remember, if you go outside your niche, you are increasing your risk considerably.
Set goals and exit strategies
Alyways plan for an exit strategy, when you are signing papers to buy, you should know exactly when or under what circumstances you want to sell.
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