Real estate investment is a great way to bring in some extra money, but it has some serious pitfalls. No matter your experience level, knowing about these hazards is vital. Use the information below to help you make profitable investments.

Do not be afraid to spend money on marketing. It is easy to just focus on the numbers and get fixated on how much marketing is costing you. However, it is important to think of the marketing as an investment in and of itself. If done the right way, it will only benefit you in the end.

Join an online investor group, or subscribe to the blog feeds of prominent real estate investors. This provides you with tons of great information to use as you formulate your own strategy. Often, real estate professions are willing to help newcomer to the industry and you can build your network of contacts, in this way.

Find a contractor to work with that you can get along with. There’s no reason to get someone to help you with fixing up the real estate you invest in if you don’t like how they operate. You can save yourself a lot of frustration if you just find someone that you know will work well with you.

Factor in how able you are to rent a home that you’re buying so you can figure out its worth. Rental income can be quite substantial. After renting the house for a few years, you can profit further by selling it.

It is wise to have a capable handyman who charges reasonable prices available if you’re buying investment property. The money you make will be used on repairs, otherwise. A reliable handyman is great for tenant issues that may arise during the day or night.

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.

Consider building up a real estate rental portfolio that can continue to provide you with consistent profit for retirement purposes. While purchasing homes to sell for profit is still possible, it is less of a reality in today’s world than it has been in the past. Building up rental income by purchasing the right properties is trending vs flipping homes due to the current housing market.

Think about making use of a property management firm. While it will cost you some of your profits to do so, it can be worth the investment. These companies will find reliable tenants and handle needed repairs. That frees up your schedule to focus on finding more investment opportunities.

After you have been making real estate investments for a while, you will soon become familiar with the pitfalls. Learn these in advance to avoid problems down the road. Keep these ideas in mind to ensure your path to success.