Residential Real Estate InvestingDid you know that roughly 90 percent of world’s millionaires got their fortunes through real estate investments? Well, if you have developed an interest in residential real estate investing, this is perhaps the best investing decision you may have ever made.

Real estate is a tangible asset, and is never worth zero, even in the toughest economic times. Unlike many other investments, real estate can produce a positive cash flow, regardless of the economy.. There is no doubt that the real estate still remains the most solid investment you can ever make. Even as, the industry suffering from periods of ups and downs, there will never be an end to the need for residential housing.

However, just like other types of investments out there, being successful as an investor in real estate market requires that you study the market carefully and learn how it operates before making your move. This way, making real money with investments in real estate will be a painless affair. In short, you must exercise an old maxim that says buy the property low and sell it high, and have enough rental income to cover all expenses, with a healthy profit left over each month . Actually, achieving financial freedom in real estate is as uncomplicated as that and if you play by the rules of the game, you are only a step away from achieving your goal. Nevertheless, you must ensure that you are applying the principles appropriately. For instance, getting caught up in property ‘sale’ is something that you must avoid at all costs. In some cases, a new residential real estate investor can get excited by seeing the transactions moving forward and lose their real investment goals along the way.

Being successful in residential real estate investing without a background or some experience isn’t easy. Nevertheless, to achieve your goals in this industry, you must search for undervalued investment properties that can assure you high returns on your investment.Real Estate King Of Wealth The best way that you can determine the real value of the residential property is making comparisons with other similar residential properties in a similar area. The market value of a property is significantly affected by its location. Also, you must carefully look at the features that the property has and determine how it affects the property value. All these should help you understand the property value and spotting the under-valued ones that you should focus on should be easy. Once you spot a property, you should not shy away from negotiating for a great deal on the property, and be prepared to walk away. This is what separates an "ok" investor with a "great" investor. It is essential that you also avoid making renovations that suit your personal tastes by focusing more on what is moving fast in the market and what new properties are advertising as their included features, in order to make your property more competitive. Never settle for negative returns or marginal returns. That is, make sure the rents will produce much more than the mortgage, and always be willing to walk away from any deal that your profit margin needs dictate.

As a residential real estate investor, you must be fully aware of how the market operates. In fact, you should spend most of your time just examining the market trends and take full advantage of all the resources that you can find. The internet is a source of useful information on real estate investments, and you can even consult professional agents for advice or higher an expert to do most, if not all the "grunt work" for you.

by Sherlin Lindsay - EquityBuild News Contributor