Residential Property Investments

Whether it's a home in which you and your family plan to live for a while, or one in which you have or plan to have tenants, or it's a house you're going to flip, as soon as you purchase real estate, you've made an investment. And as most people who know will tell you, it's a very good investment, even during hard times.

If there is a recession or other economic downturn after you purchase, you'll be fine as long as you can afford to wait it out. Because the real estate market always comes back. Real estate pundits years say that the real estate market always follows the economy. Therefore it's a little behind the economic curve. Right now It's a buyers' market, but once the economy recovers and housing becomes a sellers' market again, you're sure to make a good profit on your investment.

If you haven't started investing in real estate, the first thing you have to do is find a good real estate agent. Not your cousin or your sister-in-law, but an agent who comes highly recommended in the community. Visit an agency first and ask to speak to the "top producer"--the agent whose sales are the highest. This is the agent you want to handle your investment, unless there's another who is the agency's specialist in the specific type of real estate you're looking for.

You're ready to start looking at properties as soon as you pre-qualify for a loan. The mortgage doesn't have to come from the bank you will ultimately use. The pre-qual states whether or not there are problems in your credit history, your background, and the maximum price you can afford to invest in a house. This brings you up to speed, too. Knowledge is a good thing. You should absolutely get your pre-qualification before you start looking, so that if you find the property you want to purchase you'll be ready to bid immediately. In most cases you can't make an offer without being pre-qualified so if your competition isn't prepared, they will have to get one before they bid.

Now, armed with your expert agent, your pre-qualification and the research you have done on your own (start reading your newspaper's real estate section), you're all set up for success as you begin to invest in the real estate market.