Have you been thinking about whether earning extra income with real estate investments is for you? If you are, you should learn the market before spending money. You minimize the chance of your investment going wrong. Read on to learn how to get started properly.

Never give up if you ever experience a setback with your plan and strategy. The real estate market is filled with many great and bad times, so make sure to stay strong if you hit a lull in your search. Persistence is the key to success when dealing with real estate.

When it comes to real estate, your word is everything. You should keep your word and not lie. This will ensure you maintain a reputation for having integrity, which will serve you well over your investment career.

A fixer-upper may be cheap, but think about how much you have to renovate to bring it up in value. If the property only needs cosmetic upgrades, it may be a good investment. However, major structural problems can very costly to fix. In the long-run, it may not give you a good return on your investment.

Don’t do any improvements that involve digging until you determine whether or not you would be damaging underground lines. There are legalities involved with digging in some areas, and you also want to avoid property damages.

Location is key when looking at properties to invest in. A decaying building on great land is often a better buy than a solid home in a bad neighborhood. So, think about where the property is and what kind of potential it has, and only work with properties that have a lot of potential.

Try signing up for a professional listing service that does foreclosures so that you can find the best available deals when they appear. You can let the service keep you informed instead of constantly checking with agents, lenders, and courts. These are usually kept current and will aid your research.

Always consider the market if you are looking to buy property to turn around and resell it. It can be risky to invest in a market that is flooded with available properties. You don’t want to be stuck with something that you have to sell at little or no profit. Understand that you may have to wait to get the best price so make sure you can do that.

Be sure you’re not going to be engaged in a time-sucking managerial nightmare. Your time is valuable and you aren’t looking to be babysitting tenants. Avoid college rentals, bad neighborhoods and vacation rentals. Always invest in properties that carry a strong, tenancy history.

Know a little about the neighborhood you are buying in. If you are just looking to buy cheap properties, you may in fact lose money if you purchase a building in a rundown area. Find out as much as you can about the neighborhood before you put any money into a building there, and you may avoid losses.

There is a lot to be said about making great money from investing in real estate. The key is knowing the business, market and what you are about. With all that’s here, you’ve got a better chance of making a good choice. Think about what you read here for future reference.