Principles of Buying Right

Investing and Speculation are NOT THE SAME - Don't confuse the two, or you will get burned. One of my favorite sayings in property investing is that you make your money on the purchase, not the sale. This may seem counterintuitive to what I wrote above about the long-term game, but this advice should help you shift your thinking about the kind of deals you're looking for. In other words, find a place with equity built-in, or where equity can be created quickly perhaps through improvements. Pay attention to trends in the market and in the neighborhood. For example, neighborhood phase completions in new builds can pushallvaluesup.Thinkbig,butbuylocal.

Out of State/Area - Should you look at investments out of state? The answer to thatismaybe,butonlyifyoureyesarewide-open.Itwilladdlayersofdifficulty to an investment, and it puts more pressure on hiring the right property management company. Repairs, evictions, capital improvements, curb appeal, andotherareasaremoredifficulttomanagefromafar.

Deals abound - Don't rush into an investment. Remember, there are always moredealsthanthereismoney.

Locationmatters-Asalwaysinrealestate:location,location,location.Thesameis true for an investment property. Cash flow matters, but appreciation is still king in single family investing. That means that investors should pay attention to local trendsandareas.