Long past the hysteria of the past decade, solid, analytical investing never left the reservation. It was those without experience listening to bad advice, or no advice at all, buying real estate and selling it for a profit just a few weeks later. That didn’t happen everywhere but it happened in enough placespay attention to the facts with enough force that when the music stopped our economy took such a blow that we’re still feeling the effects.

No, the active real estate investors today have been around for a while and even if they are relatively new to the game they play by established rules. Find, analyze then make a move one way or the other. There’s no reason to make up the path, the path has already been beaten for them.

And the process isn’t very different when considering a potential real estate investment is a single family home where the owner is currently in foreclosure, a short sale possibility, a total rehabilitation or building a brand new rental property from scratch. The deal either makes sense or it doesn’t.

Real estate investing is just that—investing. Or at least it should be. There’s no room for speculation here. If there is any risk at all, the risks need to be evaluated as well as the potential returns. The greater the risk, the greater the return. At least that’s the general idea. However the level, the numbers should provide the correct guidance.

When external factors like “gut instinct” or emotion get involved the original numbers can get a little fuzzy. They become rosier than they might otherwise be. Regardless of the opportunity, it always boils down to how much you can make on an investment and what are the chances of it succeeding the way you want? New construction or not, by objectively considering the opportunity with eyes wide open, the decision you make will be the right one. Whether or not you bought the property.