Okay, there really can’t be too many “tips” for the real estate investor, the more the merrier. Such tips provided by other real estate investors come from the school of hard knocks, lessons learned and stored away in a lock box. Here are six tips the new real estate investor should know.six tips investing

Know Your Finances. This doesn’t mean looking at your bank account or checking out your IRA, it means understand before diving into real estate investing that you know exactly what you’re getting into. Your finances include how much you can invest as well as your personal credit report.

Find a Mentor. Perhaps one of the best ways to learn how to invest in real estate is to find someone who has “been there, done that” and is willing to take you under wing and provide you with trusted guidance.

Start Small. Take it easy. Don’t just look at the potential returns of an investment but understand the process. Start with a small project such as a small single family, fixer-upper.

Find an Agent. Many real estate investors got their start as an agent on the prowl for other real estate investors. An agent is someone who is in the business full time, not part time. Let them help you find and list properties on your behalf.

Find the Money. Are you going to finance your projects? Then you need to know beforehand how much you can afford as well as finding the best terms for your properties. Find a lender that will finance your rehabilitation costs as well as permanent financing.

Be the Expert. Once you find a property, become the expert in that area. Over time, you’re better able to evaluate a potential investment if you know what homes are currently worth simply by experience. Soon, you’ll be recognized as the “go to” person in the neighborhood and sellers will reach out to you first.