How To Avoid Rookie Real Estate Investing Mistakes

When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of course, ecstatic. Finally, he had done it. He had taken that first important step in truly building his wealth that the man he called his "rich dad" so often touted--investing. He knew it was very important to become an investor and make his money work for him. The trouble was, the property he purchased was a losing deal for him. He didn't see this at first, thanks to a smooth-talking real estate agent. But when he took the contract to his rich dad, he learned what a mistake he had made. According to that deal, he would be losing money each month. He thought it would be all right because he had been told that lost money was an investment in the future appreciation of the property.

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Foreclosures: A Real Boom for Investors

The climate is ripe for an increase in the number of American homes going into foreclosure. Interest rates are on the rise, mortgage payments are continuing to increase and home values are staying stagnant in some places and falling in others.Now, instead of refinancing to get their hands on quick cash, many homeowners are finding themselves in financial trouble with little or no equity in their homes, and are walking away and letting the lenders foreclose. According to RealtyTrac, the nation's leading online marketplace for foreclosed properties, 318,355 properties entered some stage of foreclosure nationwide during the third quarter of 2006, a 17 percent increase from the previous quarter and a 43 percent yearly increase from the third quarter of 2005.But the news is not all bad. Foreclosed properties have turned into a windfall for savvy investors like Michael Johnson of Chicago, Ill., who have learned the tricks of the trade