Know fundamentals and basics.

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1. The neighborhood you find should be stable.

2. Account for the condition of the property

3. Calculate the time and investment needed to turn the property at a profit and then double it.

4. Negotiate the best price and terms possible with the property owner and your financing source.

5. Once you own a property, immediately put in place your marketing plan to sell the property.

The biggest sticking point most beginning real estate investors face is trying to hit a home run with their first project. Instead of purchasing a property that needs a lot of structural changes, go for one that only needs cosmetic changes (i.e. painting and landscaping) and this will allow you to gain experience before moving on to more difficult projects.

Finally, consider finding a property that you can finance over a 15 year period instead of 30 years. By doing this you will cut your cost of capital down by several thousands of dollars and build equity much quicker. This will allow you to move up into more expensive properties faster with much less risk.