Next, you can make things easier for mortgage company by providing them with a file containing all of information that you know they will need—organized and easy-to-read. For example, you should include your tax returns, income statements, employment records, credit reports, explanation of bad marks on your credit reports, bank and investment records, contract for your new home, all bank records, and cancelled checks or other evidence of your current mortgage or rental payments. This will save time of mortgage company having to ask you for all of this paperwork.

Finally, it won’t hurt to call and check progress every now and then. Mortgage lenders process thousands of loan applications, and you can make sure that yours doesn’t sit on bottom of stack by calling attention to it with a phone call.

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Property prices don’t go up infinitely, if you examine ebb and flow of market in US over past decades for example, you will see that stand alone investment in real estate would’ve returned you gains of just over 1 percentage point above inflation! There comes a point in every market cycle when market runs out of investors willing to buy up at top prices and there comes a point when first time buyers are frozen out of market. As demand dries up, over supply brings down prices and this stops entire market in its tracks. If you remember this fundamental fact and examine movement of market closely and carefully you will be able to see when supply is about to outstrip demand, you will be able to watch first time buyers reigniting market, you will understand when time is right to sell and when time is right to buy.

4)Balance Real Estate Exposure

You may assume that your only exposure to property market is what you physically hold in way of real estate assets – but don’t forget all your paper investments as well. Do you have money invested in REITs, do you have funds that invest in commercial property as part of underlying portfolio, what about your retirement fund, which market sectors are find managers investing in on your behalf right now? Don’t assume that fund managers will make right decisions at right time on your behalf, you might be able to see heat going out of market quicker than they can react. If this happens you have to be prepared to rebalance your entire portfolio and move your exposure away from real estate if you believe market is about to dip.

5)Protect Your Equity

There is nothing more valuable than equity you own in your own home. Do not put that at risk. It is very tempting in a boom market to re-mortgage yourself back up to new greater value of your home, but in so doing you expose yourself, your family, your home and your future to unnecessary levels of risk. Secure roof over your own head first and foremost, and only then proceed into greater real estate market with care! Do not be tempted to secure any extra loans or mortgages on your family home. Professional and wise real estate investors worth their salt will always secure their own position first and foremost.