Real estate investing is an outstanding way to protect yourself from economic forces that are outside your control, and to free yourself from the drudgery of a nine-to-five job. There are both risks and rewards to real estate investing, but over the long haul, you’re almost guaranteed to see a profit from your activities. If you would like to take a closer look at real estate investing, then here are some essential terms to get you started.

Flipping
Flipping may not be the most elegant-sounding word in the real estate investing vocabulary, but it has the potential for excellent profits. Flipping properties refers to buying and selling fixer-upper homes. Flipping houses has become a popular topic thanks to several TV reality shows. Regardless of its entertainment value, the concepts behind flipping are sound. If you can find a fixer-upper home in a good neighborhood, you can often purchase it for a below-market price. Then you do some quick renovation work on the property and sell it at or above market value. Seeing profits of more than $20,000 in eight weeks time is not uncommon.

Rehabbing
Rehabbing is closely related to flipping. However, if you renovate (or “rehab”) a fixer-upper home, you’re certainly not required to sell it. You may want to live in it yourself, or you may choose to rent it out. Rehabbing properties is an excellent way to quickly build equity and add to your overall real estate portfolio.

Fixer-upper
A fixer-upper is a run-down home that needs some work. Sometime a fixer-upper is also known as a handyman special. Fixer-uppers may look like a neighborhood eyesore to some, but the savvy real estate investor sees profits. A fixer-upper often is structurally sound but has not been maintained for a few years. With some basic home repair and a few cosmetic additions, a handyman special can skyrocket in value.

Foreclosure
Foreclosure refers to the action a lender takes to reclaim a mortgaged property. In almost all cases, a home serves as collateral for it’s own mortgage. If the home buyer defaults - fails to make monthly payments as agreed–the lender takes the home back and attempts to sell it to pay off the loan balance. A foreclosure can be an excellent opportunity for a real estate investor to purchase a home at less than market value.

Pre-foreclosure
There are three different times when a real estate investor can purchase a foreclosed home: before the auction, at the auction, or after the auction. Before the auction - or pre-foreclosure - is absolutely the best time to buy a foreclosed home. During pre-foreclosure, you have less competition from other investors, you can work directly with the homeowner to negotiate a deal, and your financing options are almost unlimited. The property itself is also referred to as a pre-foreclosure.

Real estate investing remains one of the best ways to build personal wealth. The concepts above describe some of the best ways to get started in successful real estate investing.
Copyright © Karsal Pty Ltd.2006 (Fixer Upper Fortunes). Full copyright reserved Karsal Pty Ltd, (Fixer Upper Fortunes). Bloggers and journalists are welcome to link to posts or excerpt so long as full credit/attribution is given to MyRealEstateInvesting411.com and Karsal Pty Ltd.
Sal Vannutini has quickly established himself as the “go-to” expert in the game of fixer-upper real estate. With over 19 years of “in-the-trenches” real estate investing experience, as well as helping hundreds of ordinary investors achieve their ultimate success, Sal is ready to help you achieve your financial goals and lifestyle from real estate investing. His study course Fixer-Upper Fortunes is the definitive guide on investing in fixer-uppers and foreclosures.
You can reach Sal directly via [MyRealEstate411@gmail.com]

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