For many of us, buying a house or investing in real estate may be on your list of goals for this year. An article titled “The 10 Commandments of Real Estate Investing” provides10 rules on how to successfully navigate the real estate market, and are summarized below:

1. Write down your real estate investment plan. Goals written down are more likely to be realized.
2. Do not over-leverage your investments. Build up six months reserves for each property.
3. Invest in sustainable real estate markets. For investments with less risk, look for long-term steady returns versus the quick money maker.
4. Cash flow should be positive from day one. Don’t buy on speculation that values will rise.
5. Have an exit strategy. Successful investors know their exit strategy before they invest.
6. Establish a real estate power team. Your broker or agent, attorneys, accountants, property managers, etc. should all be briefed on your long-term goals to help look out for your best interests.
7. Protect your real estate investments. Hold investment property in an LLC or other entity that has few assets, instead of your own name.
8. Diversify your real estate investments. Should an unforeseen market shift occur, you have additional safety in your diversified investments.
9. Master your investing niche. In some cases, many people sell too soon because they are distracted by another “better” deal instead of holding steady their current investment.
10. Perfect your investing process. Successful people use the same investment strategy, perfect it over time, and then duplicate it over and over again.