ERIC BURGIN, Broker - Worldcrest Realty Inc.

Real Estate Investing Secrets, Number 1. The first thing to keep in mind is that real estate investing is a local sport. So don't get caught up in the CNN headlines that say the U.S. market is collapsing. Is it suffering pretty badly? Yes, but not everywhere.

It's like me telling you that, "It's sunny in Canada today". Although that may be true in some parts of the country, it's definitely not sunny everywhere. It can be sunny in Kanata and I'll drive 20 minutes to Orleans, and it's raining cats and dogs. Real Estate investing is the same way. You must ignore the headlines. It's mandatory.

Real Estate Investing Secrets, Number 2. You must get the data yourself, or work with people that have it. For example, with the "the sky is falling" media everywhere, I looked at the prices for Ottawa and found prices were up in 2009 versus 2008 by 3-5%. Get the data for yourself. Use local real estate boards, as they have great data. And use Census Canada data for population trends by community.

Real Estate Investing Secrets, Number 3. In good economic times, all housing increases in value. However, higher end homes spike up much higher than "starter" homes. So they are usually the ones that fall the most. Be aware of this. When people say house prices are falling, ask them what type of house they are talking about. Make them get specific. Don't let lazy opinions sit unchallenged.

Real Estate Investing Secrets, Number 4. In poor economic times, housing and shelter is still a necessity. Read that again, housing and shelter is a necessity. So, if you focus your investing on categories of homes that are needed (think starter homes) your exposure to risk is much less.

Real Estate Investing Secrets, Number 5. Because real estate is played locally, there are always opportunities in any market: up, down or sideways. Focus on good  communities with employment diversity and growing populations. 

Real Estate Investing Secrets, Number 6. Then, focus on good houses that will produce positive cash flow for you. Don't get stuck "flipping" a house if you can't afford to hold it for many months without an offer. Real estate investing is very different than real estate rehabbing. The latter is more like creating a job for yourself.

Real Estate Investing Secrets, Number 7. Find a good team of people. A good team knows how to invest. A good team will steer you past obstacles. We've said this before, and we'll say it again: The team is more important than the property. Remember that. Beginners forget it or don't know it. That's not you.

Real Estate Investing Secrets, Number 8. Don't buy into the hype. Think for yourself. When everyone is running one way, there is money to be made going the other way. People are making money right in your own backyard. Seriously, if you don't believe me, track down the book Acres of Diamonds by Russell Conwell. It's a short little story, and it'll explain everything.

Real Estate Investing Secrets, Number 9. Use these 3 steps. First, find a team of people. Second, use a proven system that others have tested. Third, get started. Read and go to seminars, but after six months, if you haven't done anything, you are wasting time. Will you make mistakes? Yes. Will your team of professionals get you through them? Yes. Will you grow and come out stronger? Definitely.

Real Estate Investing Secrets, Number 10. Stop listening to your family and friends. Only listen to people who are doing it or have done it. Just stop listening and stop engaging in negative conversations. Is real estate investing as simple as "colour by numbers"?  No. But that's why there's money it, because not everyone will use their creativity to create wealth.