Real estate investment is arguably one of the easier and safer ways to create wealth. With thorough knowledge of the market, with the right contacts and a little luck, you can make a decent profit. The elementary principle is, as in any other trade, buy cheap and sell at profit.

One great way to buy property cheap is to identify and buy foreclosure property. Foreclosure simply means the bank or the lender has the right to sell a property if the buyer is not able to pay the mortgage amount. This is a great way for a real estate investor to make easy profit as you will mostly find foreclosure property at below market prices.

The key to success in investment is learning how to buy under-priced, good quality real properties. Real estate investment training and experience are great assets to a real estate investor particularly if he or she is a beginner and lacking in experience.

Therefore, the first step into investing would be to gather all pertinent information to evaluate the property in question. Apart from that, some basic knowledge about mortgage and negotiating skills will be needed. You will need to understand fully the concept of foreclosure before you set out on any investment adventure.

Above all, you would need the will and attitude to take swift action at the right time. Such enterprising qualities may be rather difficult for a beginner, but things will become easier once you have gained experience.

If you are determined and patient enough and willing to learn, you have the chance to earn considerable profit dabbling in real estate. Read the investment magazines and search the Internet for more information about foreclosure real estate investment.

In real estate investing, you need to evolve an investment strategy in keeping with your levels of investment in order to optimize the return on your investment. As a matter of fact, you must have a strategy in place before you actually make a foray into investment.

The first step is to identify and buy estate for a price that is at least 20% lower than the prevailing market value. The second step is employing an increase value strategy. Once the purchase is completed, you should carry out certain renovation that will be in the nature of value addition. You should thereafter be in a fit position to sell the property at least at 25 percent more than the original buying price plus renovation costs.

In investing, you also need to have in place an exit strategy. You can either hold the property for extended periods or you can flip. If you decide to hold the property long-term, it should be a couple years before you sell it off. Long term holding is inadvisable as it would entail speculation about the future market behavior and hence risky. In flipping, you resell the property without wasting any time after acquiring it.

There are ways in which you may be able to sell it even before you buy it by putting it under a contract and letting the ultimate buyer close the sale. Successful flipping is selling for a profit as soon as possible after buying but this you will be able to do only after gaining some meaningful experience in real estate investing.