Simple Stuff Every Investor Needs to Know and Do

• Don't rely on the tax-appraised value of the property. The only true way to establish the market value of a property is through the use of comparable sales.

   

• Look for a handyman. A contractor who drives up in the new, extended-cab, long-bed Silverado pickup is not the guy for your job.

   

• Close the deal. Never submit a contract unless you are absolutely certain you will be able to close.

   

• Resist the lure of the big dollar house. High-end homes will put you out of business in a hurry.

   

• Get the keys. Don't ever hand over the money until you have the keys and the tenant is out.

   

• Don't fall prey to "deal-itius." As a rule, do not work for less than 20 percent of the total value of the property-even if you currently don't have a deal.

   

• I already have a contract, thanks for calling. Build a buyers' list. Remember: it is easier to find houses than it is to find buyers for houses. Don't throw names away just because you have a contract.

   

• Don't be cheap. There's a reason it's called "the cost of doing business." You have to spend a little to earn a lot.

   

• Beware of lien windfalls. Spend the time learning the bidding system in the state before buying. Focus on the tax rate of return, not the property.

   

• Be sure you have the dough. Don't make a bid if you can't back it up. It would really be embarrassing to be sued by the county.