My Two Cents: It's all in the numbers. I am constantly asked about foreclosure properties and short-sale deals by beginner investors. Obviously this is a hot topic in today's market but you have to be careful. Not every foreclosure or short sale is a good deal. You have to know when to walk away. I recently had an investor show me a short sale deal where there was practically no money to be made and yet he said to me, "I can't walk away from this woman." I commend him because his heart was in the right place but unfortunately you can't help everyone.

Remember for every 30 houses you review on paper you will evaluate 10, make offers on 3 and buy one. If you are investing part-time you have to be realistic about setting your own expectations for success. Too many beginner investors get impatient and jump on a purchase because they didn't give themselves the time to see the enough properties. This is how investors get burned.

It is impossible to take away all the risks of investing but you can mitigate risk by constantly looking and by learning how to put together a deal. A deal is made in the negotiations and not in the price so learn your options. Education is the key to options. However unlike many of the gurus on the speaking circuit (who subsequently want you to buy their packages) I believe you should lead with revenue not expenses. I know an investor who has spent $50K on education and has not purchased a single property - analysis paralysis. Plan to attend a seminar and then WAIT! (NOTE: You can read books but attending a seminar will help you network. If you can't afford to attend a seminar buy a quality audio program - for some reason it is easier for most to get investor concepts when they hear someone explain. If you have an area of interst and want recommendations send me an email at Laura@DHomeA.com). Do not spend another penny until you have used what you learned. Close a deal and then reward yourself with another educational program.

There's my two cents for this week. See you next week.