Networking If you want best deal possible on an investment property, than there are some people you'll want to be friends with. City hall clerks and bank employees may know what properties will be available on foreclosure and when they will go on market. Real estate agents usually know everything real estate related within their respective territory. Some prospective landlords even run ads in local newspapers.

Many individuals interested in entering investment property market may even join local landlord or investment property owners organizations. These types of organizations hold regular meetings where you can get inside scoop on what's for sale in your area. The National Real Estate Investors Association is an online organization that provides a wealth of information and resources to potential investment property owners.

Financial Preparation Get your finances in order. The less debt you have when you walk into your local lending institution, better loan you'll get. This is common sense, but it's even more true for those seeking financing for an investment property. This is because lenders know that people are much more likely to default on a rental property than on their own homes. This means that bank will demand a larger down payment and higher interest rates that you may have expected. It's also a good idea to have some extra cash left over to make unforeseen repairs should they arise.

By wisely choosing an investment property time horizon, making contacts in investment property community, and preparing proper financial means, your investment may become a significant means of supplementing retirement and other savings accounts.

One result is an “unbundling” of traditional one-size-fits-all real estate services for consumers who want more control over real estate transactions and their associated costs. If you’re willing to take on some tasks traditionally performed by agents and brokers, you could receive lower transaction costs. You might benefit from following emerging alternatives:

Fee-for-services

“Consumers want assistance from real estate professionals, but don’t want to pay for it in form of traditional commissions,” says a la Carte real estate Pioneer Julie Garton-Good. Garton-Good has been preaching fee-for-services gospel for more than 20 years. As name implies, you can choose which tasks you feel comfortable performing and hire qualified real estate professionals to do rest. Many traditional real estate brokerages are beginning to offer a more menu-based service plan. For example, you may not mind listing your home and holding open houses, but you may want assistance with contracts and closings.

One-stop shopping

In response to dwindling margins and rising costs of technology and lead generation, some real estate companies are attempting to combine traditional and Web-based services to provide consumers a single source for all their real estate needs. One-stop shopping sites generally provide or partner with lenders, insurers, title companies, real estate attorneys and others to facilitate all aspects of buying and selling. In addition, some sites are adding home-improvement and related services to stay in touch with consumers between buying and selling transactions.

Web-based discounters

Although many Web-based real estate companies flamed out in dotcom era, scores of new companies have emerged to take their place. By offering targeted services such as flat-fee MLS listings, buyer rebates and AVM tools, these sites are appealing to independent buyers and sellers who prefer to take a more active role in transactions. In addition to listings, some sites also offer how-to articles and advice for those who choose to go it alone. Tradition + technology + turbulence = opportunities

So, given trends, changes and ongoing industry evolution, what can independent buyers, sellers and investors expect in this new era of real estate?

• The Web and other technologies will continue to evolve and transform $1.3 trillion real-estate industry. Technology will continue to reduce time, expense and complexity of manual processes, and increasingly sophisticated search and valuation tools will play a more strategic role.

• Free and low-cost real estate resources will continue to be available and even multiply on Web. In real estate, knowledge truly is power. Consumers will try to use their power to gain more control of real estate process and subsequently expect to be compensated in form of reduced and fee-for-service commissions.

• The role of traditional real estate brokerages will evolve as Web-enabled consumers become more knowledgeable. This likely will trigger some restructuring and consolidation of traditional brokerages, but will also drive development of innovative new practices targeting online and empowered consumers. Real estate professionals will focus more on promoting their local knowledge and industry expertise, while consumers will perform some buying and selling tasks on their own.

• Traditional real estate commissions and profitability levels will continue to face downward pressure from various sources. The future will be profitable for brokerages that are able to extend their core expertise of neighborhood and industry knowledge into flexible new consumer-centric offerings.

• The traditional high-touch, full-service real estate agency is evolving, not disappearing. Real estate professionals who provide exceptional service and value to their customers will always be in demand.

You now can find more real estate knowledge, tools and resources on Web than ever before, enabling you to buy and sell with increased confidence. For real estate professionals, reinventing industry means making hard decisions, changing processes and managing new opportunities. But for consumers, reinvention in real estate is a winner, hands-down. Homekeys is coming soon. Be sure to look for us on Web at http://www.homekeys.net Feedback, ideas or input? We would like to hear from you! E-mail us at: info@homekeys.net