After completing a successful real estate transaction, do you ever wish a chunk of the profits didn’t have to go back to the IRS for taxes? Do you ever dream about how many more real estate deals you could do or how many more properties you could buy if profits weren’t split with the government because of taxes?

Well dream no more. Realizing tax-free or tax-deferred profits on real estate and alternative asset investing is a reality.

Government sponsored retirement plans such as IRAs and 401(k)s allow you to invest in almost anything (including real estate), not just stocks, bonds and mutual funds. And all the benefits those plans provide, tax-deductions and tax-free profits, apply to whatever investment you choose, including real estate.

The Power of Tax-Deferred and Tax-Free Profits

"The most powerful force on Earth is compounding interest." - Albert Einstein

One of an IRA's greatest features is that it allows Americans to enjoy the true power of tax-deferred compounding interest. Compound interest occurs when interest is earned on a principal sum along with any accumulated interest on that sum. In other words, you are earning interest not only on your original investment sum, but also on the interest earned from the original sum.

Compound interest can occur with any investment you make, but the "true" power of compounding interest is obtained when you make an investment in a tax-deferred environment, like an IRA.

By taking advantage of an IRA's tax-deferred status, you do not have to pay tax immediately on your earnings (like the sale of a property or rent collected). Thus, you are able to enjoy the power of compounding on ALL of your profit, not just what is left after taxes.

Now apply those benefits to your real estate or alternative asset investing. Tax-deferred profits on your real estate transactions allows greater flexibility to make more investments, or to just sit back and watch your real estate investment grow in value, without worrying about taxes.

Is This for Real?

Most investors don't know this opportunity exists because most IRA custodians do not offer truly self-directed IRAs that allow Americans to invest in real estate and other non-traditional investments.

Often, when you ask a custodian/trustee, "Can I invest in real estate with an IRA?" they will say, I've never heard of that" or, "No, you can't do that." What they really mean is that you can't do this at their company because they only offer stocks, mutual funds, bonds, or CD products.

Only a truly self-directed IRA custodian like Equity Trust Company (www.trustetc.com) will allow you to invest in all forms of real estate or any other investments not prohibited by the Internal Revenue Service.

Is This Legal?

It sure is. For more than 33 years and through the management of $2 billion in IRA assets, Equity Trust has assisted clients in increasing their financial wealth by investing in a variety of opportunities from real estate and private placements to stocks and bonds in self-directed IRAs and small business retirement plans.

IRS Publication 590 (dealing with IRAs) states what investments are prohibited; these investments include artwork, stamps, rugs, antiques, and gems. All other investments, including stocks, bonds, mutual funds, real estate, mortgages, and private placements, are perfectly acceptable as long as IRS rules governing retirement plans are followed (To view IRS Publication 590, please visit www.trustetc.com/links/irspubs.html).

Getting Started

“Is it hard to do?” is a common question about investing in real estate with a self-directed IRA. It is really simple and is very similar to the way you currently invest in real estate. The following five steps demonstrate how easy it is to invest in real estate, or just about anything else, with a self-directed IRA.

1) Establish an account with a self-directed IRA custodian. First, you must establish an account with a self-directed IRA custodian and Equity Trust Company is your best option. For more information on why Equity Trust is the right choice for your self-directed IRA needs, visit www.trustetc.com.

Setting up an IRA account with Equity Trust usually takes only minutes to complete by filling out a simple application and sending (or faxing) it to our office.

2) Fund your account. Next you have to fund the account, and this is just as easy as opening a self-directed IRA account. There are two ways to fund your account.

• Contributions You can contribute to your account through a check or wire transfer and contribution limits range from $4,000-$50,000 depending on which account you choose.

• Transfer/Rollover

In most cases, if you have an existing retirement plan such as an IRA, 401k, or 403b these funds can be transferred to a self-directed IRA allowing you to make real estate IRA investments.

3) Investment found: You’re set to go! Now that you’ve got your account established, funded and you’ve identified a real estate investment, you are ready to make an investment.

Making a real estate investment with your IRA is straightforward if you remember a few simple rules. First, complete a Direction of Investment (DOI) form. A DOI instructs the custodian where and how to remit funds from your self-directed IRA for your real estate purchase.

Information contained on the DOI includes the property address, cost, funding instructions (check/wire) etc. In addition to the DOI, the custodian will need accompanying investment documents to ensure proper titling of the investment.

4) Ensuring proper title: You and your IRA are not the same. One of the most common mistakes (and cause of delays) in real estate IRA investing is when the property is titled incorrectly. Frequently the IRA owner will incorrectly put their personal name on the title of the property.

Remember you and your IRA are two separate entities, and as such, the property needs to be titled in the name of your IRA and not you personally.

• The correct title for a real estate (or other asset) IRA investment is:

Equity Trust Company custodian FBO (for benefit of) YOUR NAME IRA

5) What happens after your IRA owns the property? Now that your IRA has purchased the property you need to remember two things:

• Expenses: Any expenses associated with the property (maintenance, improvements, property taxes, condo association, general bills etc.) must come from the IRA.
• Cash Flow/Profits: All net profits must return to the IRA, meaning all income (rent) and profits (selling of property) are deposited back into your IRA account—tax-free!

That is all there is to it, it’s as simple as 1-2-3. In no time at all you can be investing in real estate and other alternative assets receiving tax-free or tax-deferred profits for the rest of your life.

Don’t delay in opening an account. Every day that passes is one less day your investment can benefit from the Earth’s most powerful force (at least according to Einstein), compounding interest.

Here's how I have my real estate investing business call system set up and what I look for in an answering service.

First, I have all different types of my marketing out to find motivated sellers. I use things like classified ads that have my toll free 24 hour recorded information line telephone number on it. I use different extensions for each type of marketing. So, my classified ad in the weekly free newspaper has a different extension than my post it notes that I have delivered door to door in my farm neighborhoods.

When a motivated seller sees my advertisement and wants additional information they can NOT call me directly. They must go through my 24 hour recorded information line to listen to a pre-recorded message that is about 5 minutes long and explains to them in my best presentation voice, the benefits of them working with me and having me buy their house.

Once they have listened to the message, I give usually give them two options: go to my website and submit a form or call me directly.

If they decide to go to my website, they fill out a web based property information form which is directly loaded into my Real Estate Investor Database contact and business management account for me to deal with when I am ready to talk to motivated sellers.

If they decide to call my office directly, they actually do not call me. They call my 24 hour answering service. Here are some things I look for in an answering service.

First, I must be able to forward my phone number to them. I have my system set up so that the 24 hour recorded information line actually forwards the call to the answering service instead of having the seller hang up and call into a separate number. I prefer this and it requires that the answering service give you a local number (not a toll free number) because, as I understand it, you can not forward one toll free number to another toll free number.

Second, they must be willing to input the leads into my Real Estate Investor Database for me directly. Imagine getting over 100 leads in a few days and having to manually add each one to your contact management system. It is a real pain, so the service must be willing to add the new leads directly into my contact management system (which is web based).

Third, they must be reasonably priced. What is reasonably priced? I think less than 50 cents per call is reasonable. If they are going to charge a monthly fee it should be a monthly minimum against calls and not a monthly fee in addition to a per call fee.

Fourth, they must have reasonably good response time. You do not want your motivated sellers on hold for 10 minutes waiting to get through. You want them to wait no more than 2 minutes and most times they should be able to get through immediately.

Those are the qualifications I look for in a live answering service for my buying system.

The first question I have for someone who's interested in real estate investing is: What type of investing is right for you?

Now when I ask people this question, the response I often hear is:

"I didn't know there were different types of real estate investments. I just want to make some money."

Well, there are several ways to invest in real estate.

Let me explain.

1. Make Money Monthly (Cash Flow)

You buy property and become a landlord. This doesn't necessarily mean you deal with tenants. There are plenty of management companies that will do that for a nominal fee.

You buy property and structure the deal so that any mortgage payment, plus the sum total of expenses, are less than the amount of income (rent) you are receiving. Hence the term - Positive Cash Flow!

When calculating positive cash flow, don't forget there are annual tax benefits to owning real estate and appreciation (realized at the time of sale.)

2. Buying and Selling (Flipping)

The idea here is simple: buy property for less than you sell it for. You can buy a distressed property that needs improvement, or buy from a distressed owner that needs out.

When you buy property that needs improvement, to make the most money you will want to bring the property up to snuff. Whether you do the work, or hire it done, you will need to calculate your cost to improve the property, as well as your holding costs. Holding costs are the expenses of owning the property during the time of repairs and until the property is sold. These costs include taxes, any mortgage interest payments, utilities, and normal maintenance such as grass cutting, and snow removal.

When you buy property from a distressed owner, often the property is fine, but the owner has either fallen behind in mortgage payments or taxes, or does not want the property for other reasons such as relocation, divorce, probate, etc. In this situation, you payoff the owner抯 debt, take over the property, and sell for a profit. Obviously the debt needs to be lower than the market value for you to profit.

3. Lease Option

This less common method involves controlling the property without taking title. You lease the property and either sell the property or lease to another tenant until the property sells. This one is a bit more complicated and has some drawbacks, such as the inability to depreciate your lease, but you can reap big profits.

4. Buying Tax Liens Property in default for back taxes can be purchased from the government. You simply place a deposit as designated by the government and sit out the waiting period. If the taxes are not paid, you get the property. Oh, in the meantime your money earns interest and you are guaranteed by the government not to lose a dime!

5. Private Lending

Individuals are allowed to finance so many properties per year without the regulations of becoming a mortgage company. This is a great way to invest passively in the real estate market. By holding a first deed of trust, your money is secured by the property, and you can charge more interest than you would otherwise earn with a typical safe passive investment such as CDs.

6. Pre-Construction:

Buy property direct from builders before they are built. You lock in a wholesale price and market the property upon completion. This is a good opportunity in many areas. You have no tenants to worry about and no mortgage payments during the construction.

So there are six choices for you to start making money in real estate!

A common question of foreign investors is how the purchase process works in Czech Republic and what kind of time frame will things be accomplished in. This will be presented on the basis of how our standard procedure works at Czech Point 101, which has been successful for many years now.

First a property is identified and the price negotiated to agreement of buyer and seller. Sound like an easy process? In Western countries it definitely is and it can be here but is often not the case. Please refer to our November/December 2006 newsletter for tips on Czech negotiation. Now what?

At this point there will be great pressure to sign a reservation contract and pay a deposit.

"We have another buyer who is willing to pay full price tomorrow" and "We have lots of interest in this property so we'll only hold it for you overnight while you make your decision" are common ideas you will hear from the real estate agent. Believe me, unless you are the first person to see the property or it has just been put on the market, you have time to think about things. The agent would sell the property to someone else in a second if there was a serious buyer.

A note of caution: NEVER, EVER sign a reservation contract with a real estate agent before getting it checked by an independent attorney. Of course and especially if it is only provided in Czech. The agreements a real estate company will offer are most often one-sided and setup for the buyer to lose their damage deposit. We have even heard of cases where the seller withdrew from the purchase and acknowledged this in writing and the real estate agent still refused to return the deposit.

Usually, work can begin immediately on the pre-purchase (or future purchase) contracts (in the case of a mortgage) or the purchase contract (in the case of a cash purchase) and this will satisfy the real estate agent/owner and prevent them from offering it to other buyers. However, this is not a sure thing.

Often the seller will put forward a pre-purchase agreement and it will take about two weeks to negotiate the terms of the pre-purchase contract. This is the main bulk of the negotiating and legal work since the pre-purchase normally contains the complete text of the purchase agreement.

At this point an arrangement is made for a date to sign the pre-purchase/purchase contracts. It would be safe to allow for a week and a half to find a time that is suitable for both buyer and seller.

From this moment the two paths and time frames depart from a common path depending on whether the purchase is with cash or with a mortgage.


Purchase Contract (cash purchase)

Upon signing of the purchase agreements the purchase price is deposited (this is the recommended route) to an escrow or third party account. Normally the escrow agreement allows 15 days from signing for this amount to be transferred to the notary account. If it is ready and just needs to be wired, it normally takes 3 to 5 days.

During this time period, the signed purchase contracts are held by the escrow agent, whether a notary office or attorney. When the purchase amount arrives on the account, the purchase contracts are released to the Land Registry for registration.


Pre-Purchase Contract (mortgage purchase)

Upon signing of the pre-purchase agreement, often an amount of purchase price is deposited to the escrow account. This is often the amount that the buyer is using from their own cash. In the case of 100% financing, this does not have to be the case.

Now the mortgage application process begins in earnest. The collection of required documents, time for the bank to approve and drawdown is about a six week process. Depending on the complexity and bank, it can be more or less.

Once the mortgage has been approved there is usually drawdown and deposit of the mortgage amount to the escrow account before the purchase agreement is signed. Allow a week and a half to conclude a mutually suitable date for signing the purchase agreements between the buyer and seller.


Common Conclusion

Once the documents are submitted to the Land Registry it is just a matter of time before the change is registered and you as the buyer become the owner.

As of this writing, the process has been going faster and Prague Land Registry changes are being registered in 2 to 3 months and in Brno, from 2 to 4 weeks. This is a great improvement over the past.

During this time period of registration, it can be possible to agree on the turnover of the property, but often this is in exchange for some of the purchase price being released from the escrow account.


Breakdown of Property Purchase Timeline (cash purchase)

Description/Average Length of Time (days)
Negotiation of Purchase/14
Finding Mutually Agreeable Signing Date/10
Transfer of Purchase Amount to the Escrow Account/10
Registration of New Ownership in Land Registry - Prague/60 to 90
Registration of New Ownership in Land Registry - Brno/14 to 30
Handover of Property/20

Totals:
Prague/114 to 144 (4 to 5 months)
Brno/68 to 84 (2 to 3 months)


Breakdown of Property Purchase Timeline (mortgage purchase)

Description/Average Length of Time (days)
Negotiation of Pre-Purchase Contract/ 14
Finding Mutually Agreeable Signing Date for Pre-Purchase Contract/10
Securing Mortgage with Bank/42
Drawdown and Transfer of Purchase Amount to the Escrow Account/10
Finding Mutually Agreeable Signing Date for Purchase Contract/10
Registration of New Ownership in Land Registry - Prague/60 to 90
Registration of New Ownership in Land Registry - Brno/14 to 30
Handover of Property/20

Totals:
Prague/166 to 196 (5.5 to 6.5 months)
Brno/120 to 136 (4 to 5 months)


The amount of time this can take really surprises a lot of buyers who are expecting a quick purchase and turnover of the property. One thing to realize when it comes to Czech business, things do not move quickly! Be patient, set your expectations realistically and your goals will be realized.

When you are poor, property investment isn’t even a question. Normally the really poor people cannot even spend any money to secure a decent structure.

And this is our starting point. One should never underestimate the psychological factors involved where the pros and cons of property owning are concerned. They lie embedded in the unconscious memory of humankind.

For thousands of years, humans struggled to survive the harshness of nature. Extreme heat, extreme cold, floods, and droughts. Too much rain when it wasn’t needed, nothing, when the days of survival started to become less and less. Pain, hunger, death, and loss of dear ones resulted. Constant attacks from other humans that envied their competitors’ better positions. And the memory that brings all this back again and again.

Humans are therefore programmed to find themselves a secure base to build a home and in which to live. A place to find happiness, where one can relax and let your guard down.

A hierarchy of needs (Maslow), however, has to be considered. When one is safe, you’re happy. Happy to be out of the rain, where the winds can’t rough you up and where the sun can’t burn you. But then there will always be other people that live in better circumstances. They will have running water and flushing toilets (by way of speaking). For that, one can once again strive to better your previously satisfactory position.

So you start to pay up. Prepared to work harder in order to afford the better position. Voila! The rental market comes into existence. Somebody will own that hot spot and will ask remuneration for that favoured position.

One could be happy there for a very long time, were it not for a few other factors. Someone else can come along and offer your landlord better remuneration. Then you will have to move and might most likely find yourself in a less comfortable position than before. Someone could have moved up in the food chain in such a manner that he or she can buy out your landlord and now suddenly you have to cope with a much more demanding owner of your comfortable nest. Slowly but surely one starts to realize that the much longed for security is not yet secured.

In modern times, many people succeed to ensure that they continue to live in comfortable renting spaces. If however they don’t succeed to find other ways to ensure that their capital base increases, they in time will once again find that their security becomes threatened.

One needs money to carry medical costs, to feed children and get them through school and hopefully further education. Even when one works very hard and succeeds to pay for what is necessary, there will come a time when your capacity to fight becomes less. Should you then find that your assets cannot provide cover for your needs later in life, the time to rectify that position will have passed you by.

Property investment provides the owner with solid growth if he or she succeeds to buy at the right time in the economical cycle, at the right price and at the right place. More people have bettered their position through life by investing in property than by any other means.

There will be always people that will have to rent a house or apartment. A person buying property (at the right time, at the right price and at the right place) will be able to capitalize on this and will in time receive passive income as well as a broadening capital base.

The bottom line is not to get caught up by being a renter for too long. It will in most cases cost you too dearly. Buy at the right time, with all the checks and balances in place. There are enough property investment professionals around that will be able to provide solid information and advice.

Unsuccessful real estate investors tend to focus on the purchase. Successful investors focus on the operation. As you own more and more real estate over longer and longer periods of time, you will find that the clock is your best friend or your worst enemy. So use it wisely!

When considering a real estate investment over a mid or long term period, an important issue you need to come to grips with is the physical nature of a property and how it affects your financial growth and profitability. Too often a property is purchased and then left to operate without much thought about the paint, plaster, pipes, wiring, roof and so on. The intent of course is for the owner to generate as much cash flow as possible and cash flow is good. But, if that cash flow comes at the expense of allowing property elements to deteriorate, then the little profit you are taking now will be eaten up exponentially by the financial pounding you’re going to take later.

Wise management and operation will prove that those willing to do the work when it should be done, will inevitably achieve higher yields than those who foolishly allow maintenance issues to go as long as possible before responding. Simple preventive maintenance items that are ignored will compound due to the ravages of time and will inevitably cost you exponentially more to repair than they would have cost to maintain them when a maintenance need first arose. For example, a dripping bathroom p-trap that would take 30 minutes and a $5.00 part to fix will, if left unattended, warp the cabinet, deteriorate the floor and possibly allow mold to invade subfloors, sheet rock, carpeting and pad. A five dollar fix from a few months ago could now cost hundreds if not thousands of dollars to rectify. Without question the proper and timely maintenance of investment properties is the best expense control program you will ever use. Many owners have learned this lesson the hard and expensive way. Don’t be one of them. Learn from the experience of others, both good and bad.

If you will inspect your properties frequently and make the repairs and upgrades appropriately, you will save yourself thousands upon thousands of dollars over the long haul. You will also be able to maximize your income because of the quality of your property and thereby increase your NOI and market value. If your intent is to profit from real estate, then you must maintain it properly. So do the work as soon as it is identified and do it right. You’ll be dollars and hours ahead. And after all is said and done, real estate investors are capitalists, and proper maintenance is a capital idea. Good luck in your career and with your real estate investments.

Investing in real estate can be a profitable business venture, but just like anything else in life, it requires you to know what you're doing. There are so many unknown variables and countless things that could go wrong. This is the fear that prevents most people from even owning their first property.

Real estate can be a vehicle to financial opportunity, but you have to first define your goals.

But don't give up hope yet, with the proper preparation and education, you can dive in and earn a living from the real estate industry that have created more self-made millionaires than any other industry.

Before you get started, the first thing you need to consider is what exactly do you want to accomplish. Be sure to keep in mind the various aspects of what being a real estate investor entails.

This will require some research on your part, but it can be an excellent opportunity for you to dig up new and exciting methods for budding real estate investors.

You'll want to choose an area that you're very familiar with. This way, you'll get to know the market value. Once you're familiar with your chosen area, you're now the expert and you'll be able to recognize when a property really is a bargain.

This research can be accomplished with the use of online information, or you can do it in person at city hall. You'll be checking the city records for a list of recent sales in the county. Don't overlook the use of your local realtor. They can provide you with detailed information just from a few clicks using the MLS services.

The next things to consider is whether you're looking for short term profits or if you want to have ongoing monthly income.

If you opt for the short term profits, your choices can be wholesaling or retailing. Wholesaling is where you find properties and then assign them to another real estate investor. This method is a great way for beginners to test the waters, because it requires very little money and none of your own credit.

Another method is called flipping. Just turn on your TV any weekend or weeknight and you'll be sure to see several programs in which investors purchase run-down property, rehab them and then resell, hopefully, for a profit.

The other option, which includes acquiring a property for ongoing income is another attractive choice for many. If you're able to produce a monthly passive income, this can be easily become holy grail of real estate investing. To create the desired income, you would just start acquiring properties to meet the monthly income desired.

However, being a landlord may not be all fun and games. You have to know whether you have the temperament for dealing with tenants, and it's usually when things are not at their best.

So by deciding what type of income you're after, you can better define your real estate investing goals. Now that you've clearly define your expectations, you can set a course to begin your new venture as a real estate investor.

You may hear a lot of good things about real estate investing, that as you enter such world you can earn a lot. That’s true, but entering the world of real estate is not that simple.

Indeed, investing in real estate such as Sarasota real estate can make you earn so much. But you have to know that investing in Sarasota real estate is quite tough, in order to be successful in such world, you have to be prepared and armed with valuable information.

It also requires time, understanding, comprehension, knowledge, strategy and action. So if you plan to go on in investing at Sarasota real estate, you have to do research, this can help you out to know and learn about real estate investing. Internet is the best source of gaining information and knowledge about real estate investing.

There are plenty of ways to obtain knowledge about real estate investing. You can look for websites that offers tips and guides on investing at real estate. You can also look for testimonials and experiences of investors who became successful in real estate investing, you can learn by reading such. You can also look at your yellow pages, and search for the investors who are selling and buying properties, take time to call them and ask about their experiences, do not be ashamed to talk to them, you do not have to worry because they will definitely answer your call and be happy to share their experiences, you can learn through their experiences.

You can read a lot of books about how real estate investing works. Enrolling to universities that offering how real estate investing works can be a good way to gain knowledge and information as well.

Indeed, there are plenty of way to gain knowledge and information about Sarasota real estate. But as soon as you have the knowledge and information that are important in Sarasota real estate investing, you have to move on and take all of these into action.

Hiring a real estate agent is helpful especially if it’s your first time to make an investment in Sarasota real estate. But make sure you will work with a professional and the best one. As a piece of advice, you can ask recommendations from family and friends, then try to call atlas three real estate agent and make a schedule in order to interview the real estate agent each, but make sure to do schedules separately to avoid uncomfortable situations.

The real estate agent will definitely present themselves to you, so give them time to talk, as soon as they are done, that is the time for you to ask questions. As soon as it is done, tell them to call them back for your decision. Weigh things out and come up with the best decision.

Soon the real estate agent that you finally hire will help you out with your quest to purchase the best property in Sarasota real estate. The agent will help you out in finding the property that fits your criteria. Take time to visits the properties. Conduct home inspection.

Investors are attracted to the real estate market because of the incredible potential it has to multiply their money. Appreciation rates of properties are very high and almost all property deals guarantee you certain amount of profit.

One of main reasons why many others are not able to invest in real estate is that they do not have sufficient cash to pay the down payment for the purchase. However, there are plenty of financial schemes with ‘No Money Down’ option available for small investors to enable them to sustain the costs of purchasing property.

New investors can consider joint ventures, wherein one person finances the project and the other does the actual work. As a result, the one who does all the work has to put no money down for upfront costs. If you are new to the real estate game, and do not have enough funds to bear the upfront costs, you can opt for a joint venture. It is legally binding, and both parties agree upon a certain percent of profit each would receive after the project is completed.

It is a mutually beneficial partnership, wherein profits are divided according to individual contribution in terms of labor and money. The joint agreement is drawn to provide legal protection to the concerned parties in case the project fails.

A joint venture is beneficial if you are in one of the following situations:

1. When you lack borrowing capacity

If you have some money to pay the down payment, but are not eligible for a loan, joint venture would be beneficial for you. You can enter into a partnership with someone who has the necessary funds or is eligible for a loan to support your project.

2. When you do not have liquid cash or equity

You may be eligible for a loan due to your income or credit score. However, you may not have the necessary cash required to pay for the down payment of property purchase. In such a case, you can enter into a partnership with a person who can take care of the down payment.

With literally ‘no money down’ towards down payment, you can begin your dream project. There are instances wherein the seller carried a certain amount of the loan as a second mortgage. In exchange, you are required to give him a certain percent of the profits as decided in the agreement.

3. You have the necessary skills

There are investors who have the expertise to carry out a project or who have skills required for renovation. They may lack the funds for the project or may not have the inclination to invest money in the project. If you are one of those, then you can find a partner who has the money but lacks the time and expertise to complete the project.

It is important to draw an agreement carefully including all minute details to avoid any form of dispute in future.

Does this sound like you? You've gone to craigslist.org, you've gone to realtor.com, you've looked at some of the beautiful homes on videos online, you've sent off some emails to realtors and owners; But, you still get cold feet about real estate investing. Part of you desires to make money in real estate. But, you're tired of going through the same ritual and not following through. Here are some steps to move you out of your comfort zone.

First , you must realize that some of what you feel is real. Fear is real, skepticism is real. Often these feelings aren't overtly apparent but are manifested by your inaction and "living out your dreams in your head". The only way to move out of this zone is to take baby steps(but only for a while). Once you take a few steps your confidence will improve. Let's begin.

To get over your fear of dealing with realtors, you will need to realize there are good and bad realtors in both small and large real estate companies. You will also need to realize that some realtors online do exploit those who are ignorant to real estate. But there are good realtors online as well. And the key is to find them.

Good realtors, just like you and other people in business, value their time. They are good realtors because they create quality time with their clients. Their clients appreciate the service they provide. If you want to become one of those clients, which is essential to building an investment strategy, you will need to do a few things.

First: Decide on what your goal is in real estate: do you want to move slowly? do you want to invest in several homes or just one begin with one ? how many homes would you like to invest in per year? or are you still at the stage where you only know a little and need help knowing what a realistic investment strategy is for you? Wherever you are: write it down. Wherever you want to be: write it down. You'll be sharing this information with the realtor.

Second: Be honest about your strengths and weaknesses: are you ready, willing and able to invest in real estate? if so why haven't you done it? write it down. If you're afraid, write it down. If you lack money or have bad credit, write it down: You'll be sharing this information with the realtor.

Third: Keep an open mind(Zen buddhism has an apt term called "beginners mind") When you talk to the realtor listen to their words of wisdom. Stay aware of your feelings. Do you like this realtor's ideas and input? Trust your intuition. Stay focused. Be humble . Be open to their advice. Trust your feelings and use your common sense.

Fourth: Demonstrate your commitment to working with one good trustworthy realtor. If you've followed the third step you will know who that is. Your commitment is shown by staying loyal. Most people run from one realtor to another: using these realtors to show them so many homes, because the average realtor can't spend all day with you .(Realtors are aware of this strategy so don't do this. It destroys your credibility.

Fifth: Think of working with a realtor as finding a partner to joint venture with, and also as a mentor who knows more than you do about the business. Take wise advice. Be aware: wise advice will benefit both "you" and the realtor.

Sixth: Realize that one realtor you trust is like money in the bank. Overtime, they will make your investing career easier. You will develop a trust for their decisions and advice. One more thing: if there is any property you want it only takes one realtor to access that information for you: because realtors can find access to all properties through Multiple Listing Services and share commissions with other realtors.So you need not feel that you must search out different realtors for each geographic area.

Seventh: Although email can instantly get you some type of information;it is only a first step. But, you'll need to reach out and touch your realtor: the best way is through the telephone or face to face . You could email them first, better yet: call them and share those notes you jotted down.