Step 1 is always to determine fair market value(FMV). As a real estate investor, you can always buy properties at FMV. My question is why would anybody want to do that? Through careful selection, you can always find properties that are priced below FMV, regardless if they are existing or if they are a preconstruction project. The best way to determine FMV is to work with someone already familiar with area or determine yourself through local websites showing recent sales histories.

Step 2 is to then determine market trend for area for which there are two critical pieces: 1) is average price increasing AND 2) is volume of sales increasing. If both are moving in your favor, then you have comfort of knowing that right trend is in place to keep prices moving forward. In stock market investing, there is saying that trend is your friend and traders frequently observe price and volume data to confirm trend. If a hotly priced real estate market shows signs of dropping in volume, be very careful.

Step 3 is to learn about supply, especially in preconstruction marketplace. In some areas, there are very few projects on books and in others, there are 15,000+ units expected to emerge within 1 zipcode, in 1 year. Same is true for investing in houses. In you are competing with a bunch of new houses that are coming on-line, then rapid price escalation may be limited. For most savvy investors, they like to see lots of demand with very little supply which is nothing more than common sense.

It is our sincere wish that everyone have a happy, wonderful life with none of pitfalls inherent in our modern lifestyle such as divorce, job loss, illness and death. But unless your name is Cinderella, you need to understand that there are harsh realities you need to prepare for. This is not fiction we're writing here.

One of first steps on your journey to financial security is to know what your present state of affairs is. Otherwise, how can you map out a success strategy if you don't know where your starting point is? Even Dorothy had a starting point to escape from Oz. It may be unpleasant to face reality, but you gotta know.

Make a file, a notebook- some kind of recordkeeping device that works for you. You can buy books for that purpose, use a computer program, whatever. The important thing is that it be comfortable and easy for you. Don't add to your stress by trying to use a system that takes a lot of effort on your part to work with. My husband likes to do his recordkeeping on computer but I prefer a notepad and simple accounting ledger.

The next thing to do is find out how much money you have right now in cash, checking and savings accounts. If you are bill payer for your household, this should be easy, but if you've not been involved in that process previously, you may encounter resistance, even suspicion. It may take a diplomatic effort on your part to reassure your mate that your intentions are honorable. Each partner in any domestic relationship has both a right and responsibility to participate in financial processes of partnership. Just as you wouldn’t invest in a business then blindly allow someone else to control money, it is unwise to invest in a relationship with fruits of your labor yet not have a hand in investment process at home.

When you think of investments, you may think stocks and bonds, but in truth, everything you spend money on is an investment. Buying groceries, paying doctor bills is an investment in your health. That big screen TV you've been wanting would be an investment in your entertainment. Getting up every day and going to work to earn a paycheck is an investment in your financial welfare. Paying bills is an investment in your good credit. Paying electric bill is an investment in keeping lights on. Instead of seeing things as expenses, consider them as investments. This is important as it programs your mind to see each expenditure as important and worthy of consideration.