Real estate is widely considered one of the most reliable forms of investment. But that doesn’t mean you can go into it completely blind and expect profits. It’s entirely possible that even a bad real estate investment could net profits eventually, but you shouldn’t count on it. If you’ve never done any real estate investing before, make sure to do your research first. Even if you have, you need to be aware of shifting market conditions.

For those just starting out, start by gathering information. This could take some time, so don’t expect to start investing immediately. Build networks with more established investors as well as agents, property managers, and contractors. Do your own research as well, particularly by learning about the various property types, relevant laws, and financing options.

Once you know about investing in general, you can move on to researching specific properties to invest. Determine the goals of your investment. How much profit do you want? When do you need the money? What sort of risks are you willing to take? Knowing the different property types is particularly important for this step, since it allows you to better pick the right investment as well as diversify your investments. Now you can examine the market trends and see what’s available that fits your plan. If there isn’t much around, you may need to adjust your plan. When identifying properties, take into account factors such as the location, expected appreciation, rent values, and property condition.

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