However, this kind of real estate investment also requires hard work, is time-consuming, and needs money. But it is true that if you know the ropes, this type of ventures can pay off handsomely in the long run. Besides, the thrill of dealing, buying, fixing and selling homes is challenging.

To safeguard your money, time and effort in investing in homes, and ensure that it gives you financial returns worth your while, here’s the two basic tips.

1. When looking for homes to buy and sell, look for those that need to be fixed or repaired. Inspect the house by turning the lights on, flushing the toilets, look at the floor tiles, cracks in the ceilings and walls, and check the plumbing, water faucets, and electrical wirings.

Once you find a home that interests you, engage the services of a house inspector to give you an estimate on how much it will cost you to fix it and how much price it could resell.

2. Buy a house in a good location.  Consider these factors: nice neighborhood, close to schools, hospitals, shopping malls, markets, access to transportation, and peace and order. The price of a home in a good location is higher than in a poor one, which gives you a high return when you resell it, after repair is finished.

Going into real estate investing, especially in home investing, is beset with both risk and opportunities, as any business is. The idea of investing is earnings, so make sure that your investment must always give you returns, not loss.

But once you have learned the ropes, the tricks of the trade, everything will turn out fine. The moment your first investment home is repaired and sold, you will be on your way to making this a profitable business.

Because a home is still one of the biggest investments most people will make, it pays to spend a little money and time protecting its value. According to Remodeling Magazine’s 2009 Cost vs. Value Report, home repairs and remodeling are still worth the investment. Big projects such as adding an additional room or outdoor deck will generally offer the best return. However, big home improvement projects come with big price tags, so it’s smart to weigh your options.

No matter the project size, the key is to have a plan and a budget. Create a detailed spending plan and don’t forget to budget for incidentals such as equipment rentals and delivery charges. For large projects, consider the cost of contractors and permits.

Taking good care of your home can help you avoid costly repairs down the road, so if nothing else consider small projects that help to maintain efficient functioning. For a big impact with little cost, consider the following home improvement projects:

Fix what’s broken. Basic repairs may not be as exciting as adding on a new room or installing a pool, but may be the most practical choice for your weekend do-it-yourself project. Visit your local home improvement store and take classes to learn how to repair a leaky faucet or toilet, replace electrical outlets, fix a squeaky door or floor board, as well as many other general home improvement projects.

Focus on first impressions. Fresh paint and a few flowers can be purchased for a minimal cost, but curb appeal can go a long way in creating a cozy finished look for your home. Keep gutters and shingles secure. Consider replacing windows with energy efficient material to save big on utility cost.

Consider the wet areas. Kitchens and bathrooms are the most common value-add remodeling projects. Both spaces offer an opportunity to either start really small with new facets and lighting to really large expansion projects. Simple do-it-yourself improvement projects for these areas include adding new hardware to cabinets, retiling the floor or countertops, and freshening up the walls with new paint and wallpaper.

Finally, update old appliances to more energy efficient models. The cost to use appliances can quickly outweigh the purchase price, so it pays to buy energy efficient models and save big on utility cost.

Now the answer is clear. Home improvement does result to an increase in return on investment.

Interested customers can also avail of other low rate fixing options as follows: 8.00% p.a. annual repricing; 8.50% p.a. fixed for 2-3 years; 10.50% fixed for 10 years and 10.75% fixed for 15 years.

BPI Direct’s housing loan can be used to purchase a vacant lot or a house and lot. One can also use the loan to construct a house and renovate existing homes. To avail of the special interest rate, loan applications must be received from March 1 to April 30, 2010 and availed not later than July 31, 2010. BPI Direct has dedicated Account Officers that are ready to assist each borrower with their own unique needs and requirements.

“Like any other Filipino, I looked at owning a home as a sign of success,” says Rosebelle, 35, an operations manager of a small enterprise. “It’s one thing to find a job in the city but it’s another to actually find a piece of real estate of your own. That’s why I’m so glad that I took advantage of this opportunity when I heard about it.”

BPI Direct, the first and only internet bank in the Philippines, gives clients the convenience of choosing the most convenient channel through which they can reach the bank. BPI Direct can be easily reached online by logging on to ww.bpidirect.com and easily apply for the loan online.

For further information e-mail Mara, mara@brandspeakasia.com

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When I asked some of them why, they answered the following:

1. There is continuous demand for real estate properties like houses because of the growing population. Hence, their investment is safe and profitable.

2. There are on-going developments in the urban center because of rural to urban migration, resulting to steady demand for houses.

That is why real estate investment is considered by many to be still safe and profitable.
If you want to invest in real estate, consider these two important tips:

1. Make sure that your property gives you income, e.g. high returns monthly if it is for rent, or maximum profit if you are into buying and selling.

2. Make sure that your property is in the right location. Location is always a factor in real estate investment.

Market analysis is a method for analyzing your target buyers’ preferences, especially on how much they are willing to pay for your property.

Imeage from www.ehow.com

To do this, you review the market for your property, e.g. who are your potential buyers, the prices of houses being sold in the market, and the number of houses up for sale.

In doing a market analysis, you hope to have a clear data about the market conditions, the willingness of buyers to buy your home at a given price versus the prices of other homes, the neighborhood, conditions of the property (age of the home and maintenance) and the features (no. of rooms, toilet and bath, floor area, land area).

Specifically, in market analysis, you do the following to come up with a basic data to price your property fairly, with the right buyers in mind:

Compare home designs, e.g. your home vs. other homes for sale.

Compare size of home, e.g.  floor area and lot area vs. that of the other houses for sale.

Compare the selling price, e.g. price of your home vs. that of other houses in the neighborhood or locality.

Doing a market analysis will guide you to set the price of your house fairly and sell it to the right buyers faster.

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The reason is obvious. Returns on investment on homes are guaranteed because the property always appreciates or increase in value every year due to a growing population.  The more population there are, the more is the demand for homes.

If you want to invest in homes as real estate, here’s the three money making strategies, which I have presented in short and simple manner.

1. Buy, Fix and Sell for a Profit

This strategy involves buying a home, fix or renovate it, and then sell it for a profit.

2. Buy and Rent the Property

This strategy involves buying a home, renovate it, and then lease it to tenants. You earn a monthly rent which after a certain period you can already recoup your investment while still owning the property.

3. Buy cheap foreclosed property and sell dear

This strategy involves buying a foreclosed home for a cheaper price, renovate, and then sell based on the fair market value, for a profit.

Or you can fix the property and have it rented out. Either ways, you make money

Just like in any other business, in real estate investments too, there are intricacies that are personal to it, and can cause negative impacts when ignored.

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Many first time real estate investors make the mistake of investing hard earned money without a proper understanding. This induces a greater risk for their investments. There is a need in real estate investing to protect your assets.

Avoiding The Errors
The question to ask yourself, depend on why you are investing in a particular property. Do you intend to hold it for a long period, or do you intend to turn it around for selling at the earliest possible time? Let us look at some of the errors that certain investors make, which you need to avoid, in order, to protect your assets. This will ensure excellent returns on your investments.

Check The Property

Do not get sucked into the excitement of investing in a real estate property. There are rampant claims of high return on investment in the real estate business. Check the condition of the property, and how many modifications and renovations will be required. Ensure you have the rightreal estate agent, who will not overlook all the seemingly insignificant, but important details.

Inspect Thoroughly
Have a professional inspector thoroughly check the property. You need to exercise sound business judgment, as you are going to invest your hard earnedmoney. If it is a rental property, check with the tenants regarding pest problems, structural damage, or any reoccurring problems.

Check All Documents
The documents involved in a property can be overwhelming. These documents include building permits, zoning laws, rental and lease applications, underlying loan documents, CC&Rs (covenants, conditions and restrictions), by-laws, title policies, inspection reports, purchase contracts, and insurance. The list can seem never ending.

Cash Flow
If your real estate investing is in a rental property, you should intend to hold on to the property for a longer period, as long as 15 to 20 years.

You will need to ensure cash flow to take care of your property. This includes paying for the property’s maintenance, repairs, and improvements. There will be times when your rental property will be vacant and not earning you a rental. You still need to have cash for the upkeep of your property.

Short Duration Investing
If you plan to invest in a real estate property for a shorter duration, you may not feel the need to invest heavily on improvements. Sometimes, short duration investing can be risky, as the property may lose in value. Generally, property prices appreciate over longer periods.

Source: Free Articles  http://www.articlecircle.com/

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In reality, there’s more to it than just having to find properties, good networks and contacts.  Some investors who have the experience in real estate business lose their money on it. Others  just break-even.

So, how to make money and be a success in real estate business? The secret is marketing. Yes, marketing is the key.  In real estate business the important thing is how to find sellers and buyers. And to do so there is a need to use marketing – marketing strategies and tactics, just like in any business.

How to implement marketing strategies and tactics in real estate business? Here’s how:

1. Advertise your properties for sale and to attract your target customers

2  Promote yourself or your real estate firm to create awareness and brand

3. Set the right price for the properties and inform the customers

Where will you promote your property listing or firm?

You can do so by using the following medium/media:

1. Internet

2 Television

3. Radio

4. Newspapers through classified ads section

5. Word of mouth

The objective of using marketing in your real estate is to reach out to many potential sellers and buyers, especially to your target market, thus generating more property listings, more sales, income and profit.

Without marketing, there is no business, real estate business included.

Unfortunately for a homebuyer, once the lender forecloses his residence, the lenders price is often slashed below the market value and the buyer cannot bargain the house price. The best deal is to buy at the right time and that is possible during a foreclosure.

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Bank foreclosure homes are usually considered the most sought after investments. Banks are the most convenient and trusted services to turn to for information on foreclosure homes or distress home sales. The truth is that foreclosed homes can be excellent investments only if you approach the situation carefully and wisely.

The number of foreclosure homes available is increasing all over the United States. Foreclosed properties can be cheaper by 20-50%, as compared to similar houses and this gives you an opportunity to invest in a larger property than you might actually be able to afford.

If you want to buy a home at a wholesale price, it will involve some serious work. These bargains are available in different price ranges and from the very best to the worst neighborhoods.

There is a definite procedure involved in finding a foreclosure bargain. You should start by identifying the information source, such as a legal firm, newspapers or weekly newsletters. The county recorder of deeds is also a very good source.

Many large cities have one or more publications meant only for foreclosure and distress property notices. The best and safest way to find foreclosure homes would be to find a reputable listing service first.

Listing services are mostly companies that have large databases, with a whole list of foreclosures. Some are nationwide listings and some are area or type specific.

These listings help in finding foreclosure homes quickly, since many of these listing companies have a library of information on foreclosure homes and also lots of information relating to the procedure. The accuracy and promptness of the listing service really helps in getting a good deal.

There are a number of ways to verify the information provided by the listing services. For example, you could request for a sample price list and then compare the prices and quality of information provided.

Before you enter into any negotiations with regards to a foreclosure home, you must access a pre-qualified loan. Guaranteed financing is a very attractive deal to the sellers and hence they are more likely to offer you convenient terms and conditions, rather than deal with people who will not be able to come up with the required finance.

Source: Free Articles

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While real estate investing is very profitable and could give a very high return, yet people who do not have the experience and know-how often fail. This is because investment in real estate is a double-edge sword: it is profitable as it has also many pitfalls.

Below are the common mistakes that people make when investing in real estate:

1). Failure to inspect the property before buying. This could result in the structures being in disrepair or in bad condition.

2). Negligence to study the land title covering the property, such that the title has liens and encumbrances. This could result in the property having an existing mortgage or with notice of embargo or is subject to a pending litigation in court.

3). Lack of scrutiny of the vicinity map and lot plan. This could result in the property being owned by another person.

4). Limited research on the property. Example: the property has unpaid realty taxes because the investor did not ask for the tax clearance before signing the deed of absolute sale.

In short, it is important to conduct due diligence first, prior to buying the property and signing the contract of sale.