What to do if your rent does not cover other expenses

When renting out properties one thing that can happen is the rents don't cover the monthly expenses of a property. One reason this can happen is if taxes go up or if the cost to heat the home or other bills go up. One thing you can do if the rents don't cover the monthly expenses is raise the rents. When renting out a property it is important that your lease is not to long, one or two years at the most. The reason for this is if your monthly expense goes up and you have a long lease on all the places you're renting out, you will not be able to raise rents for a long time.

Another thing you can do if the rents don't cover the monthly expenses of a property you are renting out is try to save on the bills you are responsible for. If you can instill a more efficient boiler this can be an upfront expense but can save your money in the long run. One other thing you can do when it comes to saving on the bills is getting new shower heads and toilets that use less water. Doing this can save you money in the long run.

One last thing you can do if the rents don't cover the monthly expenses of a property is try to find cheaper services then you have. If you think you can get cheaper gas or oil to heat the property, switching companies can save you money. Sometimes if you switch companies you may get the same or even better services than you have before. Before switching gas or oil companies it is recommended that you do some research to know what you're getting in to. Raising rents should be a last result because you can end up losing a good person or family you were renting out to for years. If you find a way to cut cost on a monthly basis, this can help you if you have a property that the monthly expense is not covered by the rent.

A good web site where you can see more information on topics like this is Real Estate Facts which is highly recommended. Another article witch is also recommended is Bringing A Former REO Property Up To Date Thank you and enjoy.
Article Source : Things To Do If Rents Don't Cover The Monthly Expenses

About the Author
A good web site where you can see more information on topics like this is Real Estate Facts which is highly recommended. You can also Add This Article to your web site or blog. Thank you and enjoy.

Buying A Home with Confidence

Home ownership is touted as the greatest investment, and one of the biggest responsibilities, of a lifetime. So it's no surprise that the buying a home can seem overwhelming and confusing, especially for first time homebuyers. As you wade through the real estate lingo and legal paperwork, just keep a few key points in mind. By knowing what to focus on, you'll have more control over the entire process of buying a home.
Financial Concerns When Buying a Home
The loan amount you qualify for, and what you can really afford, may be two different things. Take the time to figure out what you can comfortably afford to payout monthly. Make sure you include lawn maintenance, household repairs, tools, and association fees in that number. You will be much better off getting less of a house, and still being able to maintain it, than buying a brand new home and letting it go to pot because you weren't aware of the true expenses of home ownership. The next step is to clean up your credit and get pre-approved, so that when you do find your dreamhouse you can move ahead.
Wants and Needs When Buying a Home
Spend some time thinking about your desires and future plans. Take a minute to mull over these questions about buying a home:
* How many rooms/space do you need? Will your family grow, or will you move again in a few years? * What's your ideal location? Do you want to be in a certain school district? Do you need to be near the city, or away from it all? How important is your commute time to your quality of life? * How important is a brand new house? Can you afford a fixer-upper (time and money)?Do you want a huge yard to care for? * What amenities do you need? How important is living in a close-knit community? * Where are you willing to make trade-offs, and which issues are non-negotiable?
Once you have an idea of what you want it will be easier to spot the right place, and to describe your ideal home to a real estate agent.
Found it? Inspect It! -Before Buying a Home
Do not, under any circumstances, neglect a good home inspection. When buying a home, the inspection can be the most critical step you take. A good inspector will look for mold, water damage, gutter damage, and ventilation issues. But the responsibility will rest on the person buying the home, that's you, to make sure that the inspector does a good job. Some red flags you don't want to see when buying a home are water spots on walls and ceilings, growth the walls, or water lines in basements. Water spots will indicate mold, and the basement growths indicate water damage.
Count on Someone You Trust When Buying a Home
Maybe your Dad has a dozen investment properties and will hold your hand through the closing process of buying a home. Maybe you ask friends to refer a competent real estate professional. However you go about it, just make sure that you understand the legal procedure of buying a home. You are making one of the biggest investments of your life, so you should feel confident and happy. Ask a lot of questions, and only work with a real estate professional who answer them fully and happily, and your experience buying a home will be rewarding rather than confusing.
About the Author
John Harris is a researcher and writer on applicable real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit Escondido RealtorsB

Knowing When to Refinance

Refinancing can be a great money saving tool for homeowners, or it can be the wrong thing at the wrong time. Last year, according the Mortgage Bankers Association, Americans refinanced to the tune of $1.17 trillion dollars. The rising cost of fixed rate mortgages drove that to a mere $938 million this year. That's still a huge number of people who choose to refinance their homes or commercial mortgages. Here are some guidelines to help you decide if this is the right time for you to refinance.
What to Know Before You Refinance
You need to be able to answer some basic questions about your home or real estate investment before you can make a wise decision about the best time to refinance. For instance, what is your current interest rate? Is it fixed or variable? Is your home's value increasing? Can you afford the closing costs associated with refinancing? What are your plans for your home or real estate?
This background knowledge will help in several ways. If you plan to move within the next three years, or if the difference in interest rates in less that 1.5%, then refinancing might not pay off right now. Remember, once you refinance you need time to recoup the closing costs you have invested. However, if you have a variable rate that is climbing, or a significantly higher fixed rate, refinancing may offer you some appealing options.
Why People Refinance
People refinance for different reasons. In many cases, the decision to refinance can help to reduce your monthly payments and interest, or reduce the life of your loan and the principle owed. Others obtain a cash-out closing to make home improvements or pay off consumer and credit card debt. This method usually doesn't lower your payments.
Before You Decide to Refinance
But before you jump into a decision to refinance, be aware that there are costs involved. Closing costs and points will affect how much money you must pay up front to refinance. A point is equal to 1% of the total amount of your loan. You should expect to pay 2-3% in points when you refinance. Just like when you purchased your home or real estate investment, the more money you put down, the lower your interest rate is likely to be. There are instances where you can get a no-cost closeout, and these are ideal, but not always available.
A word of caution; if you find yourself refinancing yearly to pay off debt, you're not doing yourself any favors. In this situation you are probably increasing both the life and principle balance of your loan amount. This is a short-term fix that can have long-term consequences. What Can Help
To help get the lowest interest rate when you refinance you can do one of two things. Put as much money as you can down upfront, or use that money to pay off consumer credit card debt. Since your interest rate and the amount you can borrow are tied to your credit score, it can save you money to improve your rating before you refinance.
And don't forget to shop around. You will find a lot of lenders willing to work with you, and mortgage rate calculators are available on many real estate websites. A little homework now will save you a lot of money later.
About the Author
John Harris is a researcher and writer on applicable real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit San Diego Realtors

Bridge Loans

When To Consider a Bridge Loan
As the name indicates, a lender offers bridge loans in order to create a financial "bridge" to get the borrower from one transaction to the next. A bridge loan is meant to be a shorter term loan that is used for interim financing while waiting for another transaction or situation to occur. A bridge loan can take care of short term needs while looking for the ideal long term solution. A bridge loan is often used to purchase commercial or foreclosure real estate, enabling the borrower to close on a property quickly. Often borrowers utilize a bridge loan until:
A property is sold A property is improved or completed A property can be refinanced Credit improves or financial situation changes A business has resumed or improved, or changed in a specific way that allows for a more permanent financing option
What Are the Benefits of a Bridge Loan?
Bridge loans also known as "Swing Loans", "Interim Financing" or "Gap Financing" are generally quick, and usually require less paperwork than a long term loan. A bridge loan can allows you to make a competitive offer on a property without a contingency clause. Whether you need a loan fast, or just need a temporary loan while closing on another loan, a bridge loan can be very helpful and financially sound solution.
Pros
Designed to be fast and easy Generally involves less paperwork Gives you extra time while waiting on a specific condition/situation Provides a convenient means for a seller to purchase a new property before selling an existing proptery
Cons
Interest rates are usually somewhat higher than a traditional long term loan, but can still be quite competitive Not designed for long term needs
Does It Matter if My Lender is a Member of the Mortgage Bankers Association of America?
The Mortgage Bankers Association (MBA) is a national association for professionals in the real estate finance industry, which promotes fair and ethical lending practices and fosters the professional excellence of real estate financial employees.
When you need a loan, it is a good idea to select a lender who is a member of the MBA. This helps protect you against fraudulent practices and unethical companies. The MBA is headquartered in Washington, D.C., and invests in communities across the nation by focusing on improving the quality of residential and commercial real estate markets. Lenders who are members of the organization receive frequent market updates, educational training opportunities, and other useful information that can enable them to give clients the lowest possible interest rates, and exceptional service.
The MBA includes over 3,000 trusted companies in the real estate financial industry including mortgage bankers, originators, aggregators, mortgage brokers, guarantors, and investors. Other member companies include insurers, appraisers, title companies, lawyers, closing agents, technology vendors, consultants, and many state associations. These valuable partners can be a great resource for a lending company, which also helps ensure that you get the most professional and high quality service available.
About the Author
SNC Commercial Loans has been in the commercial loan industry for years. They are a direct lender that accepts 1003 applications. Learn more about bridge loans here.

Purchasing a New House

I often think of how great it would be if we could buy new homes by simply flashing our credit cards or signing a cheque. But then, as the old saying goes, if wishes were horses, beggars would ride. Most of us are ill equipped to deal with the rising prices of the world of real estate. Whenever any of us want to purchase a new house, we have to avail of mortgage loans of some kind. So, as soon as we see that dream house of ours, we have to start searching for a loan provider to give us a mortgage loan that we will be able to afford. Thereafter we have to go through mortgage comparisons, talking to lenders, brokers, and people who have already taken mortgages.
However, if you thought this was it, It is time for you to brace yourself. This certainly is not "it". A mortgage is certainly not a short term commitment. Just as a house is an an asset for the long term, a mortgage loan is a long term liability. You will now have to spend many years just trying to repay that loan you took. And it is going to hurt when you see a significant part of your monthly income is draining into the house account. But then, it is a commitment, and a liability. Make sure you realize the implications before you even go house hunting.
Then again, if you are thinking that this will be the end of your expenditure, you really have another think coming. You are soon going to have to take care of other major expenditure that are as diverse as education for your children, medical expenses, home renovations, and so on. And it may be likely that you will once again have to consider a loan to finance these needs. But the advantage is that since you already have a house, you can certainly utilize the equity on it. So the next time that a major expense rears its ugly head, rather than getting paranoid about it, you should start looking at some home equity loans. So, you will simply be utilizing the value of your house that you have already paid for, and you will not have to consider other kinds of personal loans at all.
Then again, if it seems like your current mortgage is carrying on for an inordinately long time, you could sift through some home mortgage refinance offers. By availing of these offers, you could either decrease the term of your mortgage, or you could diminish your monthly interest payment. With so many different measures around, there is bound to be something to appeal to people from all walks of life.
About the Author
The author recommends: mortgage loans, home equity loans, and home mortgage refinance.

Dream House Hunting

The second that I found out that I could finally buy my dream home, it was time to exult. After what seemed like decades of hard work and saving up, it was finally time to go house shopping. I know of people who look in every nook and cranny till they finalize the house that they are going to buy. I did not find it all that difficult. We looked at a total of three houses prior to choosing the one that I liked best.
Of course, moving in immediately was not a likely possibility. No matter how much I had saved up, I would still have to look to a bank to give me the money to make that purchase. With the skyrocketing prices of real estate these days, everyone needs a little support when it comes to finally making that investment.
However, getting a loan in in this day and age is not really an uphill task. Everywhere you look, there is a loan offer waiting to bump into you. They make home purchase seem as easy as ABC. My parents had always been insistent that I eventually buy a house for me. However, when they saw the speed at which I proceeded with finding the place, arranging for finance, and signing on the dotted line, I think they gawked a little. When my parents were younger. Loan getting was never this easy.
I suppose, we should show a good deal of gratitude towards the World Wide Web. Who would have thought that technology could bring banks right to our doorsteps? But it did, and we are all greatly benefiting from it.
My parents warned me about the confusion that studying about loans could cause. They told me that most loan providers try to rip you off. But that certainly was not the case with me. I found it very easy to find the best deals on home loans. And while I was at it, I even read up about mortgage and home refinance. Moreover, the loan providers were very clear-cut with their fantastic offers. Every bonus will be checked by a glitch, but that is to be expected.
The only problem lay in looking through the scores of offers, in trying to finalize the best one. Once I had finalized the loan I would take, all I had to do was contact the broker, meet the owners, and pay for the house. Not quite as easy as pie, but not all that difficult either. I got first hand experience of how simple it could be to purchase a home.
About the Author
Ajeet Khurana, recommends that you read about LoanSpec especially for Home Purchase and Home Refinance.

Real Estate Investing

If you're just getting into real estate investing, chances are you are looking at two basic options for mid-range residential property. You can either own the property indefinitely and rent it out at a profit or you can own the property for a short period of time, fix it up, and sell it for a profit. While both can be great approaches to real estate, some properties are not equally suitable for both.
Renting It Out: Renting out your property can be a huge moneymaker, but not for every property. For instance, if you have just bought a property that is in serious disrepair, you may not want to rent it out. It might be better to fix it up and sell it, because nobody wants to rent a property that is in serious disrepair. Furthermore, if you fix it up and then try to rent it, you now have to recover the initial payment on the property as well as the cost of renovation. That can take awhile, and can be recovered faster by selling the property.
Likewise, if you have just bought an expensive property which is in great shape, you may be better served to make some market-specific improvements and sell the property. People who can afford to rent expensive residential property are probably not looking to rent; they're looking to buy.
Finally, consider the area the property is in. Is it in a transitional area, where people tend to stay for five years or less and move on? If so, renting it out can be extremely profitable. Do something with the property to set it apart from the average property in the market and then list it at 120% of the market value, trumpeting the aspect of the property that sets it apart. In a market where everyone is stuck renting basically the same property, a little bit of color or flair can add a lot of value to a property.
Fixing and Flipping: The key to the fix it and flip it philosophy is to renovate the property to the extent that it is now marketable to a wealthier buyer without spending so much in the renovation process that the increase in value is negligible. This can be more difficult than it seems. First, major renovations can sometimes snowball out of control. What started as a $30,000 project can turn into a $60,000 project before you even know what hit you. Second, you need to know your market very well. You need to know that by investing $30,000 in the renovation of a property you can turn around and sell that property for (significantly) more than $30,000 more than you paid for it. This can be risky.
However, if you are confident that you know your market and can keep the renovation project under control, fixing and flipping a property can involve much less risk. Because you can make your money back in a shorter period of time than renting the property, unforeseen changes in the market are less likely to cause you problems. A faster turnaround should make for higher profits in the long run.
About the Author
Visit Automated Homefinder for all of your Boulder real estate needs.

Making money from foreclosures

We seem to hear so much about foreclosures these days, most of us know at least one person who has had their house foreclosed on. Drive into almost any neighborhood and you will find at least one foreclosure sign.
It's no wonder really, most Americans spend what they make and more. We want it all, we max out our credit cards and sign up for so many payment plans till we can barely see straight. We struggle to make ends meet and then disaster strikes, divorce, we lose our job, or any number of things can happen.
Whatever the reasons, there are a great deal of foreclosures on the market these days. So, what does that mean for the average person looking to find a good deal on a house or the person trying their hand at making a little extra money on flipping houses? It means there are some great deals to be found out there.
We sort of stumbled into the foreclosure market about 2 years ago. The housing prices in our current neighborhood were at an all time high and we had already been considering a move for a number of reasons, school districts, getting closer to the grandparents, needed more space and wanted a swimming pool, and on and on.
We decided to put our house on the market and our realtor said he had just purchased a foreclosure at a great deal and we should consider it. So we set our sites on finding a great deal.
We started doing some research and started looking at some houses. Now, you can find some foreclosures in great shape, but your not always going to get the best deals on these homes. You have to start looking at the houses and seeing the potential they have to offer.
Some houses just need a little cleaning, maybe a little paint or new carpet. Other homes have just been destroyed beyond repair. One home we looked at was in a nice new golf course community, great price, plenty of square footage, a swimming pool and only about 5 years old. It was priced way below market value. But at closer inspection, we realized the foundation was bad, very bad!!!
We finally did find a home perfect for us and in the exact area we had been wanting. However, perfect for us, did not mean move-in ready. But we did see the potential in it. You really have to take a lot in to consideration. Our house had been stripped of almost every light fixture, dishwasher, above the stove microwave, bathroom mirrors and oh yes, even the kitchen sink. But it had a great foundation, and no major damage. So we just had to replace some fixtures and few other things, re-carpet the downstairs and put some paint on the walls and we were back in business.
But, we had done our homework. The area we were moving into is a new up and coming area, growing very fast, so we are speculating the prices will go up very shortly. We also priced out the house values for homes of similar square footage, built about the same time as ours and found that it was already priced $20,000 below market value. We then took into consideration the money we would have to put into it and offered the bank, that now owned the house, $20,000 less than their asking price. That's $40,000 under market value. And they accepted.
You see, Banks aren't in the business of selling houses, they are in the business of making money. We quickly learned if your offer is more than what is still owed on the house, they will more than likely bargain fairly with you. They just want to make their money back. So, in the end we paid $40,000 under market value, invested 15,000 to get it back in good condition, and now have $25,000 in equity in our home.
So, if you were wondering if the average person out there could make money buying and selling foreclosures, the answer is YES. You don't have to have years of experience in real estate or have a realtor's license. It's actually not that difficult and we had a lot of fun at the same time. Just make sure you do the your homework and learn everything you need to know before you start because there are some great deals to be had out there.
About the Author
If you would like to learn more on buying and selling foreclosures just visit this site

How to Sell Houses Quickly

We're getting close to payday. The final step is to sell quickly. This is another topic that could be discussed for days.
I'm only going to cover wholesaling and lease/options. There are many other possibilities such as retailing and several different types of auctions, which are beyond the scope of this book.
You already decided how you were going to sell (your exit strategy) before you bought the property in the first place, right?
Wholesaling
If you bought a "junker" (an "ugly house' in need of repair) and followed the MAO formula, you can either wholesale it or retail it. You can wholesale it quickly for cash. You could make more money retailing it, but there is also more risk and it takes longer.
Wholesaling is nothing more than finding a bargain for a bargain hunter. In other words, selling the house to someone who is willing to do the repairs and retail the house. They'll be doing most of the work so they'll be making most of the profit. You'll pocket a healthy "finders fee" for discovering the deal.
If you choose this option, put an ad in the real estate section of your local paper. It should read:
Handyman Special Cheap, Cash 219-555-1212
You could put a website in the ad too, if you have one and your local paper allows it.
Other than that, DO NOT change the ad. Run it just as it is. The first and last lines of the ad are blank. It costs a little more, but it makes the ad stand out and draws more attention. The ad is proven over time to attract buyers.
Your asking price should be at or about MAO. If you followed the rules, you paid less than MAO (at least $5,000 less than MAO) so you should make several thousand dollars profit.
Your goal is to build a "buyer's list" for this and future "junkers". When the phone rings, prescreen your buyers.
Tell them you get deals like this often and ask if they'd like to be contacted as other houses become available. Get their contact information. Also ask if they can pay cash and close quickly.
Ask them to go see the house and get back to you quickly if they're interested. You shouldn't be showing houses.
When they call you back, ask how quickly they would like to close. The only acceptable answer is ASAP - no longer than 10 days. If they need more time than that, they're not a real buyer so move on. They're probably trying to tie up your property so they can wholesale it to someone else.
Get as much money as you can as an earnest money deposit. Then schedule the closing as soon as possible to get the rest of your money.
Oh, and you don't need any cash to wholesale a propertyâ�Ã,¦do you? You get the property under contract, and then find a buyer before you have to close. You can assign the contract to your buyer for the difference between his or her purchase price and yours. Pretty simple isn't it?
So there's a quick synopsis of wholesaling a junker.
About the Author
Robert Phillips is an expert on creative real estate investing. For real estate investing tools, tips, and resources on real estate investing visit http://www.how2investinrealestate.com

How to earn from real estate

First I'd like to preface that I am not a Guru! I am not selling a seminar, workshop, boot camp or mentoring program. I created this site to answer the question I am so often asked, "How did you get started and make money in real estate?"
If my comments seem boastful, recognize that there are many others who have done far greater than me. My hope is that this article will serve as an encouragement to "Newbies", those who are just starting out in real estate. You can make money in real estate with no money, no credit, no prior experience and in your spare time!
I can hear you saying, What spare time? Real estate is a time-money business. You've got to have one or the other and preferably both. I didn't have either, so I decided I would make the time to make the money. Once I made time to make money, the question was how do I make money in real estate with no money, no credit and no experience? I had never bought a property, didn't even like the thought of real estate. Tenants, fixing toilets and dealing with evictions was not for me, but I had heard of others making loads of money in real estate. The question was how?
Since I love to read and love good coffee, naturally a trip to the bookstore was the first step in my quest to find out how to make money in real estate with no money, no credit and no experience. Browsing through the books I came across a couple that were particularly interesting to me. What the heck, I'll spend $15.00.
A WEEK LATER I MADE $6500.00!!! THE WEEK AFTER THAT I MADE $8000.00!!! NO MONEY, NO CREDIT, NO EXPERIENCE, NO SEMINAR, NO BOOT CAMP, AND NO GURU.
As a beginner, flipping properties is the technique you need to generate fast cash. You don't have buy a house, just put it under contract and flip it. All I did was made some cheap letter sized flyers, passed them out, found a motivated seller, put it under contract and flipped the property to the end Buyer and cashed the check! I was so thrilled to say the least. I did it again and again.
Again, you don't have buy a house, just put it under contract for one price and flip it for a higher price. Buy and hold, lease options and all other methods should be used after you've built a solid cash foundation. There are lots of investors out there in serious financial trouble using rehabs and multiple rental income strategies. Also you don't need expensive seminars and boot camps. If you can afford them go, but I didn't. After I made my first flips, I bought some courses.
I've found that chat sites can quickly overwhelm a Newbie with such diverse opinions, and can cause confusion. Don't get lost on information overload. I was determined to go out and make money. Don't listen to those telling you it can't be done! It can!
If you'd like to read more or see the list of books I read go to http://www.howimademoneyinrealestate.com I hope this article was an encouragement to you to get out there and make money!
Copyright 2007 http://www.howimademoneyinrealestate.com All rights reserved.
About the Author
I am not a Guru! I am not selling a seminar, workshop, boot camp or mentoring program. I created this site to answer the question I am so often asked, "How did you get started and make money in real estate?"

Seven Ways to Real Estate Investors

I have been asked a number of times about the common traits of successful real estate investment , owners and operators. So I've given it a little thought and stolen a catch phrase from Stephen Covey and originated the following Seven Habits of Highly Successful Real Estate Investors. Whether you're investing for wealth development, income, tax shelter or asset growth, these habits will hold true for you. At least give them a read and a thought or two. They can help and I hope they'll help you.

From my experience I believe that the following seven principles are consistently understood and implemented by successful investors. Let's review what they are and why they're important.

1. Reduce the risk of negative cash flow by not overleveraging. When you over borrow for a piece of real estate the property must earn enough money to pay its traditional operating expenses and debt service. Unless you are able to buy the property at significantly below its value, when you over-leverage you will put the property at a huge disadvantage that will typically result in significant negative cash flow. I can't speak for all investors, but I don't like negative cash flow!

2. Reduce the risk of property/ casualty losses or related law suits by purchasing adequate coverage from a reputable insurance firm. Sometimes an owner may think that insurance is an unnecessary expense, after all, they never plan to use it. So they get the cheapest coverage they can find. The biggest reason some policies are cheap is because they don't cover much. This looks good until the disaster occurs and then you are financially crippled. Better to get adequate coverage and not worry about it. It says in the Good Book that if you are prepared you shall not fear. Proper insurance makes for proper preparation.

3. Reduce the risk of financial devastation caused by major repairs or upgrades by initiating an inexpensive preventative maintenance program. By keeping a property in decent operating condition, all components will last longer, upkeep will be minimal and revenue sustained. If you let a property deteriorate, you will have major capital expenses, loss of revenue from down rooms, apartments or units and a drop in value. Better to spend a little now than lose a boat-load tomorrow.

4. Reduce the risk of tenant problems by actually doing a credit and rental history check on applicants. Just because somebody is vertical and ventilating does not mean you should rent to them. There are lots of firms that will do the research for you (for a small fee) to tell you whether an applicant has a history of suing landlords, running on leases or not making payments. You cannot make good decisions without accurate information. Credit and rental checks give you the data you need.

5. Reduce the risk of personal financial ruin by using a properly formed and maintained legal entity to own the real estate. The business value of using an LLC, Corporation or Partnership to own real estate is well documented. While it may be easier to just "do it in your name", that would will allow any financial or legal problems to follow you home from work and invade your personal assets, bank accounts and investments. Chances are that you will sleep better being a stockholder or interest holder than you would as a sole owner.

6. Reduce the risk of business failure by implementing an effective property management system. With a few simple protocols and practices you can take the headache out of property management. Simple timed activities will remarkably reduce the time, effort and frustration of being a property manager. Take the time to establish your program early on or you'll be investing tons more time than you need to in the future.

7. Reduce the risk of tax problems by keeping accurate books and records and using a CPA at tax time. You cannot manage what you cannot measure. You cannot measure what you cannot monitor. You need accurate books and records if you expect to be successful long term. Without good financial records you will never be able to maximize your yield. Get them started and keep them up to date.

There they are, seven habits that are simple, sweet, straight to the point and sure to work. While virtually every property owner you will ever meet will agree with these principles, yet only a few will actually live by them. It will be easy to recognize the difference. Those that put these principles into play will smile a lot and visit the bank to make deposits. Those that don't will frown more and need to visit the bank to get extensions or new loans. I know which one I'd rather be. Keep smiling. If we can help we'd be glad to.

About the Author
Roger Beattie is a real estate broker, investor, owner and operator. He has an excellent blog with investing articles and industry news. www.MiddleClassMillionaires.com/blog He also recently co-authored a report instructing how to lower the risk in many real estate investments. Real Estate Risk Reduction Techniques