How to Buy Investment Real Estate Properties

One of the best ways to make money is to allow your money to work for you. This is known as investing and when it comes to real estate properties, there are a few guidelines.

Difficulty: Moderate

Instructions

1. Check the classifieds for houses For Sale By Owner (FSBO). Since there is no brokerage fee in the transaction, often you can purchase the home at a lower price.

2. Visit your county courthouse and ask to be put on a mailing list for real estate sheriff's auctions. Bypass the ones that allow the previous owner to purchase the property back and bid only on the absolute auctions.

3. Purchase homes with decent foundations and structures that need some TLC. If you don't understand the structural aspects, take a knowledgeable person with you when you inspect the home.

4. Rent the home and use the money to pay your mortgage note. Make sure you check potential renters references very carefully and keep track of all your expenses and receipts for business purposes.

5. Sell the fixed-up real estate only after one year and one day. At that exact time, the capital gains rate switches from a high-cost short term rate to a low-cost long term rate. The money you will save by selling just one day later could be substantial.

[luv2blog]

on 8/28/2008 Good article. Thanks! 5 stars.