by Talia Murphy

Created on: June 09, 2008   Last Updated: June 16, 2008

I've always heard that to be a successful investor, one must walk the plank alone and take the plunge against the current. That is certainly a hard thing to do and probably why not everyone is a successful investor. Today, foreclosures are rising and real estate values are plummeting. That is why it is an excellent time to buy! Buy low, hold, sell high. However, one must be very practical and look at the overall picture, before taking that plunge. Look for value and approach owners right before their house goes into the final stage foreclosure. It is a much better solution for the owner, since it gives him the opportunity to make something back on his investment, rather than walking away completely empty handed. You will be able to buy at a good price. Put a minimum of money into the house by only making necessary repairs and replacements. Freshen it up by repainting and give it "curb appeal" with some landscaping. Get it rented, fast.

Another thing to consider is the fact that energy costs are rising at significant rates. If you buy a home for investment, find one that is close to the center of town or has access to public transportation, making sure it is has at least three bedrooms and preferably has two baths and is in the middle price range. These houses will always be rentable. Don't go for the large house with too many extras. Those homes are difficult to rent or sell quickly. You don't want to be caught with an empty house over a long period of time, so don't stretch your neck out too far. If there are any colleges in your town, buy close to them, as that will give you additional insurance for keeping it rented, even when the economy is taking a beating.

The mid-range home is easier and faster to turn over and in more demand for rental. When they say location, location, location, take that as the absolute most important thing to remember. No matter how great the house, if it is located next to a junk yard, the value will never improve. As a rule of thumb, real estate closest to town or the city will escalate in value faster than homes further out. Eventually, that junk yard may move, but why wait that long when there are many other opportunities and better investments. Look carefully and don't hesitate to make an offer on a house you're interested in buying. Depending on the circumstances of the seller, he may well be ready at that very moment to sell. Be bold.

To be a saavy investor today, again, look at the big picture. China, Australia, Brazil and India are developing at an astonishing rate and expanding their infrastuctures. Consider investing in basic materials needed for building, such as steel, cement and copper for wiring. Look at the largest development companies in those countries and invest in them. Look at commercial real estate companies or the basic materials companies that supply the developers. With these things in mind, you will have the best chance to make terrific returns and you can watch your money grow for a more secure future.

Learn more about this author, Talia Murphy.
Click here to send this author comments or questions.