Dallas Appraiser L.L.C. wants your help and commentary on our Real Estate Blog

Title: 

Servicing the Real Estate Market

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282

Summary:

Your real estate marketing services must include information easily gathered by needy homebuyers and sellers, such as the access to your easy-to-navigate Web site.

Keywords:

real estate, real estate post card marketing, post card marketing, just sold

Article Body:

Your real estate marketing services must include information easily gathered by needy homebuyers and sellers, such as the access to your easy-to-navigate Web site. 

Your Web site must include your own listings as well as the area's multiple listing service. Part of your real estate marketing services to sellers must include the ability to take a home and turn it into a great photo opportunity elegantly and successfully displayed online. Photos are the key to the success of online listings. You can write an incredibly descriptive and compelling visual picture of a property for sale but it won't generate any way near as much interest as a great photo of the property. Yes, indeed, a picture is worth a thousand words. Your real estate services must include that realization and action to put that concept into production. 

What's so great about the Internet is that you never run out of space to tell your story and paint your picture. Nor does the price go up depending on the length of your story, as it would if you placed a print ad. Most Internet listing sites, including the sites of the local newspapers, offer opportunities for multiple photos of property, or in many cases a great video or virtual open house, where you can walk through the home for sale, with a 360 degree online tour. Your real estate services should include all professional expertise and assistance in accomplishing this.  

 

People want to know about the local community - the schools, the recreation, the taxes, and the entertainment. If your real estate services acquaint them with their potential new community and it looks promising, your real estate services will probably pay off with a sale.

Title: 

Waterfront Real Estate: The Ins and Outs

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387

Summary:

As with any type of real estate, waterfront real estate comes with a few special considerations.

Keywords:

waterfront real estate, buying waterfront real estate, daytona real estate, FLA Real Estate 

Article Body:

As with any type of real estate, waterfront real estate comes with a few special considerations. 

If you are purchasing real estate on the water, be it a river, lake or oceanfront, you'll want to know for certain what your rights and responsibilities are to that water and its shoreline. For example, are you obligated to build a certain type of dock? Many areas have regulations governing what type of dock can be built. Are you even allowed to moore your boat there? Sometimes your rights end at the waterline. Is your beach accessible to the public or can you limit who goes there? Can you build right beside the waterline, or do you have to have any structures a certain distance away? Be sure you investigate the maximum water levels, and research the flooding history of your area. All of this will be important in your future at your waterfront home, so be sure to get the facts before you buy, so you know exactly what you'll be working with. 

Living beside a body of water, realize that it is a delicate ecosystem and be sure to consider the environmental impact of what you do. It might be best to avoid things like weed killers on your lawn if it's just running down a slope into the water. There may even be laws governing what is safe to use and what is not. For this similar reason, homes with septic systems will have special regulations beside the water. Because the water level is higher underground, follow the rules carefully to avoid sewage leaching either into the lake, into your drinking water or into your basement during especially wet times of year. 

You will also definitely want to consider safety when living beside the water. Ask around about any local dangers such as hidden currents or underwater rocks close to the surface. Also rusty old boats or garbage that has sunk that could hurt unaware swimmers. 

Once you've figured out everything you should know about your own unique piece of waterfront, it's time to sit back and enjoy some of the benefits. Not only will you enjoy living in such a beautiful area and taking advantage of the local recreation, you'll have peace of mind knowing you've invested in some of the most valuable real estate around.

Title: 

Weeding Out Buyers with Financial Excuses

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435

Summary:

Selling a home can quickly become frustrating when buyers claim financial delays. Here is how to eliminate these excuses up front.

Keywords:

real estate, selling, seller, mortgage, broker, brokers, buyers, buying, financing, lender, home appraisal, home appraiser, DFW, Texas, Arlington

Article Body:

Selling a home can quickly become frustrating when buyers claim financial delays. Here is how to eliminate these excuses up front. 

Weeding Out Buyers with Financial Excuses

If you have ever put your house on the market, you know the frustration potential buyers can cause you. It is fairly shocking how many people will come to an open house or ask for a private viewing, yet have no intention of buying the home. In fact, many of them seem to have no intention of buying ANY home in the near future. They are just out poking around in the business of other people. 

A common excuse offered by such people for not making an offer is they have not got their financing worked out yet. Yes, they love the property. In fact, it is perfect. They wouldnít feel comfortable making an offer, however, until they were sure they could get financing. After you hear this a few times, you will realize these people are just wasting your time. Instead of grinding your teeth, there is a way to stop these people in their tracks. 

Allow me to introduce you to a mortgage broker. Unlike representatives working for a particular mortgage lender, a mortgage broker is an independent person who helps buyers find the best loans among a pool of lenders. The process is analogous to a travel agent shopping the best flights for a client, but much more money is on the line. 

A mortgage broker is always looking for their next client. They are only compensated when they close a loan, so they are highly motivated to pick up leads. They are so motivated that they will actually come to your property during an open house. A mortgage broker will literally sit their all day and take applications from potential buyers. Heck, the broker will probably bring appetizers and other ìmarketingî materials. 

You can probably see where I am headed with this advice. If you find a lot of buyers are using financing excuses, you should consider asking a mortgage broker to attend any open houses. When the buyer makes the excuse, you can introduce to the broker to them. Itís like throwing blood to a shark. The broker will help legitimate buyers and wind up those who are just wasting your time. The best part of it is they will do it all in a very polite manner. 

Everyone dislikes buyers that have no intent of actually buying a home. In exchange for wasting your time, you can cut their excuse off at the knees by having a mortgage broker present.

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Summary: The US buyer will look for many attributes to a home before considering buying a house. However you may be surprised to find what is the most important consideration before making an offer on a property.Preparation is the key to achieving your asking price so where do you begin and whats really important to your home buyers 

 Keywords: home,buy,buyer,sell,property,real estate,house,TEXAS, Appraisal, appraiser, DFW, sell house,sell,home,sell home online

Location, central heating, air conditioning, double glazing, good neighbours, good schools and a long lease these are just some of the factors that buyers consider when buying a property. So it was some surprise when we learnt that that new Us research commissioned by the Homebuyer Show revealed something completely different. The survey reports that 72 per cent of home buyers say good security is rated as being more important when making a buying decision than a home overall condition and size. Home buyers also ranked security above other key house buying factors such as the quality of the neighbourhood and local facilities. Less important when deciding on a property is the state of the interior decor, 51 per cent regarded this as irrelevant. One in three buyers are unconcerned by the provision of lack schools and a similar amount were indifferent of the size and state of a propertyís garden. Security, Security, Security! The study also looked at the improvements and gadgets in a home. Security again topped the list with homebuyers regarding a state of the art security system as being more desirable than kitchen gadgets and plush designer furnishings.  The Homebuyer Show recently said "Home Security has been moving up the homebuyers' agenda for a number of years but it has now become one of the main priorities." Despite the findings of the study it is clear that to sell your house it requires a great deal of preparation. Those sellers who feel that they are wasting money improving their homes before they sell will not sell their home fast. In fact this lack of preparation could cost them thousands in price reductions. A broken fence or damaged guttering will only serve to add negotiating power to the buyer. Price and presentation are critical to sell your home First impressions count, buyers will have already formed an impression before they step into your property. A well-kept garden, pathway and fence, plus a freshly painted front door are immediately appealing, whereas a scruffy outdoor space with a litter bin outside the front door may turn many prospective buyers away. De-clutter - don't underestimate the appeal of a tidy property. Throw out the junk - use moving as a good excuse to get rid of old, unwanted and unused items. Clean - dust and clean the whole house thoroughly, from cobwebs on the ceiling to crumbs and stains on carpets and rugs. Remember to wash down paintwork and clean windows. Natural Colours - research shows that, most buyers prefer natural, earthy colours to bright, bold shades. Although there is a wide range of paint colours available, magnolia is still the top-selling colour. Add a bit of colour - to prevent rooms looking too bland, use strong colours for accent walls or cushions and accessories. De-personalise - remove personal items, such as family photographs and children's drawings, which may distract potential buyers. It may sound harsh but it really helps sell property Maintenance free and Complete all minor repairs. Major Jobs- If you do not spend out on home improvements to complete major repairs it could have a disproportionate affect on the value of the property. Lighting - the right lighting can improve the mood of a room. A room looks cosier with a few table lamps rather than bright general lighting. Create a scent - it may be a bit of a clichÈ to bake bread or grind coffee beans just before the arrival of a potential buyer, but scent does plays an important role in creating the right impression. Open windows - most buyers like the smell of a freshly cleaned and aired room. Open the windows every day to let fresh air into the house. Avoid strong food odours - don't cook foods such as fish or curry before a viewing as the smell will linger. Take pets out - ask friends or family to look after pets during viewings. Fresh flowers and fruit - flowers and a bowl of fruit will brighten up a room and provide a pleasant smell. Define your rooms - a property will be more appealing if rooms have a specific purpose and this allows buyers to see the full potential of the property. Seasons - the best time for selling property is spring and autumn; the market slows down during late summer and over Winter and Fall. If a property is sold while the market is buoyant, it's much more likely to attract the asking price. So if you want to sell your home quickly preparation is crucial and upgrading your security arrangements is a must.

Title: 

Warranty Deed vs. Quit Claim Deed

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381

Summary:

When you are in the process of selling (or purchasing) a house, you will most likely, encounter several kinds of documents: all with different names and with different uses and functions. Two of the most misunderstood documents are the warranty deed and the quit claim deed. Many think that these two forms are alike, but they are not.

Keywords:

real estate, for sale by owner, contract, realtor, real estate agent, investment, forms, contract, home appraiser, home appraisal

Article Body:

When you are in the process of selling (or purchasing) a house, you will most likely, encounter several kinds of documents: all with different names and with different uses and functions. Two of the most misunderstood documents are the warranty deed and the quit claim deed. Many think that these two forms are alike, but they are not.

A warranty deed is a document which the seller presents to you and is used in majority of all sales transactions. The warranty deed simply states that the seller owns the property being sold and that it is free from any sort of liens. By presenting a warranty deed, the buyer is assured that the holder of the title has the legal right to transfer ownership of the unit and is assured that no one (financial institution or other creditors) would come after him to make a claim on the property. In the eventuality that someone does lays claim to the property that has just been purchased (or that the claims stated in the warranty is erroneous), the buyer is further protected by law, and would be entitled to receive a form of compensation. Warranty deeds seldom stand alone as these documents are usually backed up by a title insurance policy.

A quitclaim deed, on the other hand, is presented to a buyer by someone who does not necessarily own the property being sold, but holds responsibility for it. This occurs due to several reasons such as when the owner dies and bequeaths the property to one of his heirs, or when there is a marriage and the owner wants to include the name of his/her spouse to the title (among others). A quitclaim deed offers a lower level of protection to buyers. This kind of document is used primarily when the property in question will just stay within a family.

Incidentally, there are times when both a warranty deed and a quitclaim deed are presented to a potential buyer. An example is when the property lies on the border of rivers and or lakes; where ownership of the underwater land on which his property stands on remains unclear.

If you are unsure which kind of deed works best for your property, consult a real estate agent or a real estate lawyer, or Real Estate Home appraiser.

Tips for Investors to get through a Real Estate Market Crash to the other Side

There is little doubt about the fact that a real estate market crash can be frightening for everyone; especially investors. When the market is good, itís great; however, when it starts to slide it can be more than a little stressful. Many new investors often look to veteran investors and wonder how they are able to make it through the ups and downs of the real estate market year after year and come out relatively unscathed. 

The truth of the matter, of course, is that many investors do not come out unscathed. Many become frightened at the first sign that the market may be about to slide and quickly exit before they become burned. The real secret to being a successful real estate investor lies in sticking it out through the bad times as well as the good times. 

So, what do you do when the market does experience a downturn? How do you make it through it in order to take advantage of all the benefits when the market finally goes back up again? 

First, try to avoid selling in a down market. Suppose the property that you have purchased for investment does go down in value. The best approach is to try to hold onto it until the market returns and your property goes back up in value. This can certainly be frightening and stressful at the time; however, if you examine the cyclical nature of the real estate market you will discover that it always comes back. The amount of time it takes for it to return can vary; however, real estate always bounces back. 

One of the most common reasons that many investors sell when the market is in a downturn is that they are afraid the market will worsen. Of course, there is always that possibility. It has to hit the bottom before it can begin the climb back to the top. 

Selling during this particular phase of the market is often an emotional decision and one that is frequently not well thought out. There are even some cases in which investors who sell during a down market find they must scramble to come up with the costs necessary to close the deal. Stop and consider for a moment the anatomy of such a decision. 

The market has turned down and you are concerned it will get worse before it gets better. So, you sell the property at a price that is far below what you paid for it and perhaps even what you have it mortgaged for. The person who buys the property waits it out and once the market returns, which it will, they are able to take advantage of the great deal they made and ultimately turn a great profit. 

Instead of selling, an alternative option would be to hold onto the property and rent it out. Historically, there are always more renters during a down market than buyers. Why? Simply put, when the market is down many first-time homebuyers find they are frozen out of the market because lenders are more conservative and write fewer loans due to more restrictive underwriting guidelines. Since everyone still needs a place to live, many of these people wait out the market by renting. If you do sell during a down market, make sure that it is because you have given it plenty of thought and not because you are reacting to emotion. 

Beyond waiting out the market downturn it is also a good idea to make sure that you put aside some cash when possible. When you are already in the middle of a slump that can be difficult to do; however, when the market turns around again make sure that you put aside a little extra money in the event you experience a turn in the market. The extra money can provide you with a cushion until the market settles as well as ensure that when the market does turn around you have options available to you. 

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Title: 

Thinking Of Selling Your Home?

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712

Summary:

Selling a home in many areas of the USA at the moment is a gamble. It is difficult to decide whether or not to sell, whether to list at what you feel is the market price, or whether you should undercut the market price.

Keywords:

home appraiser, home appraisal, home sales, selling your home, selling real estate, DFW appraisal, Real estate, Texas Real Estate, Dallas Appraiser

Article Body:

Selling a home in many areas of the USA at the moment is a gamble. It is difficult to decide whether or not to sell, whether to list at what you feel is the market price, or whether you should undercut the market price. 

If you are planning to sell your home, one of things to ponder first is: do I really have to move? Is this a good time to move out of my house? If you are planning the move because you have to move right out of the area, then the choice is out of your hands. 

But if you are planning a move because you need more space - can you extend your house? Can you build a garage with a room overtop and run up a staircase outside? Would a sun trap conservatory satisfy the need for extra space - these are easier to pass through the planning permission process. Does your yard allow for a two story house extension to be built, it need only take up a small space in your yard. One large room and staircase going up to one other large room is ample for most people. You can always 'knock it through' to the main house and make the final adjustments after it is completed.

This type of extension is very popular with owners of the older one story homes, and the construction does not interfere in any way with your life (until the last phase). There is no plumbing or sewage work required, so it is not too expensive.

If none of these options work for you, and you need to move, then you must do some investigating into real estate in your area. Your real estate agent will help you with this. When you do choose an agent ask him if he is acting as a buyer's agent for any clients. You will need to know this, as it could create a conflict of interest for the agent if he is working for the buyer and the seller (you). 

Having chosen your agent, check through the listings with him for comparable homes in the immediate area. You must take into account the yard, the condition and decor of the interior and exterior, the number of bathrooms and bedrooms and the newness of the appliances and accessories in both the kitchen and bathroom. Your agent will have local experience and also have a 'gut' feeling about price. 

Some other factors will make a price difference such as vinyl clad windows, condition of the roof, also double glazing and whether there is a garage etc.

Once you have checked over several homes that have sold in your area, you and the agent will have an idea of the price that would be fair for your home. Another check that realtors will do for you is to see how far below the original listing price each property sold for. This gives you an indication of whether or not you can expect the same kind of discounted offer.

As your realtor will tell you, it is better to list it at a realistic price to start with, than to have to reduce the price two weeks after it is on the market.

When (hopefully) you get an offer in, do not feel insulted if it is too low. Often a prospective buyer will come in low, just because the first offer is one way to get the negotiating started. If you want to more or less stick to your asking price, you can 'counter-offer' with a price that is only $500 or $1,000 less than your asking price; your real estate agent will probably be able to advise on the prospective buyer's situation. However, the agent does not know everything, and often a buyer can suddenly come up with more cash! 

Another point to remember is that sometimes a buyer will leave the bargaining table, but after a check around the market, he or she may well come back and re-enter the fray! 

If a sale looks imminent, but is failing to complete for the lack of a few funds, ask your realtor to explain to you about 'seller's contribution'. Sometimes it makes sense to bend a little and secure a definite sale in this unstable housing market!

Title: 

Three Deadly Mistakes Every Home Buyer Should Avoid

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578

Summary:

This article explains the three mistakes home buyers should avoid.

Keywords:

home buyers,home inspection,nachi

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Deadly Mistake #1: Thinking you can't afford it:

Today, buying the home of your dreams is easier than ever before. Many people who thought that buying the home they wanted was simply out of their reach are now enjoying a new lifestyle in their very own new home.

Buying a home is the smartest financial decision you will ever make. In fact, most American and Canadian home owners would be financially broke at retirement if it weren't for one saving grace - the equity in their home. Furthermore, mortgage rates are more flexible today than ever and tax allowances favor home ownership.

Real estate values have always risen steadily. Of course there are peaks and valleys, but the long term the trend is a consistent increase. This means that every month when you make a mortgage payment the amount that you owe on the home goes down and the value typically increases. This owe less-worth more situation is called equity build-up and is the reason you can't afford not to buy.

Even if you have little money for a down payment or credit problems, chances are that you can still buy that new home. It just comes down to knowing the right strategies, and working with the right people. 

Deadly Mistake #2: Not hiring a buyer's agent to represent you:

Buying property is a complex and stressful task. In fact, it is often the biggest single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated. New technology, laws, procedures and competition from other buyers require buyer agents to perform at an ever-increasing level of professionalism. For many home buyers, the process turns into a terrible, stressful ordeal. In addition, making the wrong decisions can end up costing you thousands of dollars. It does not have to be this way!

Work with a buyer's agent who has a keen understanding of the real estate business and who is on your side. Buyer's agents have a fiduciary duty to you. That means they are loyal to only you and are obligated to look out for your best interests. Buyer's agents can help you find the best home, the best lender and the best inspector. Best of all, in most cases, the buyer's agent is paid out of the seller's commission, even though he/she works for you.

Trying to buy a home without an agent at all is, well... unthinkable.

Deadly Mistake #3: Getting a cheap inspection:

Buying a home is probably the most expensive purchase you will ever make. This is no time to shop for a cheap inspection. The cost of a home inspection is very small relative to the home being inspected. The additional cost of hiring a certified inspector is almost insignificant. As a home buyer, you have recently been crunching the numbers, negotiating offers, adding up closing costs, shopping for mortgages and trying to get the best deals. Do not stop now. Do not let your real estate agent, a patty-cake inspector or anyone else talk you into skimping here.

NACHI front-ends its membership requirements. NACHI turns down more than 1/2 the inspectors who want to join because they can't fulfill the membership requirements. 

NACHI certified inspectors perform the best inspections by far. NACHI certified inspectors earn their fees many times over. They do more, they deserve more, and yes they generally charge a little more. Do yourself a favor...and pay a little more for the quality inspection you deserve.

Rental Ownership Woes

While real estate investing is a great line of business to get into in order to make copious piles of money there are a few things to consider before jumping into the fray. This is particularly true if you are considering going the route of a rental property owner. There are all kinds of reasons that this is a good solid investment for most that are interested in investing in the real estate business however, it doesn't come without a few drawbacks, not all of which are financial. It would be wise to consider these things however before you buy your first rental property.

First of all, if you own rental properties and elect to manage them yourself, which is probably wise unless your first property is a multiple rental unit, you will quickly discover that your life is no longer your own. You are literally on call 24 hours a day 7 days a week to handle problems that may arise from pipes bursting, heating going out, electric issues, noxious fumes, leaky roofs and window sills and countless other complaints that may erupt at odd hours of the day or night. Your tenants will have your phone number and expect you to always take their calls. 

Second, you have to play the role of Mr. or Mrs. Mean every month when the rent is due. This is probably the least tasteful task of owning rental properties for many rental property owners and one reason that many resort to the services of a property management agency above all other reasons. You will hear all manner of sob stories in your role as landlord but you need to treat this like the business even the things about your business you don't like such as rent collecting and, when necessary, eviction proceedings.

Third, the constant need for upkeep and repair is often daunting to rental property owners. It's a sad truth that people do not treat rental properties with the respect that they would treat a home of their own. For this reason you almost always need to paint and replace carpeting, at the very least in between tenants. This takes works and time not to mention the fact that the time that is spent painting and replacing the flooring is time that the property is going to be empty of tenants and not bringing in any income.

Finally, there is the constant need to have the property occupied. As the owner of a rental property you will need to find new tenants when the old ones leave because every day the property is empty is a day you aren't making money. You want to have the property filled as often as possible and you really want long term tenants whenever you can manage that. One way of course is by making sure that your tenants are treated well, not overcharged, and happy with their homes.

Owning rental property can be financially rewarding but it is a lot more work than many people give it credit for being in light of other careers within the real estate investment field that may require more work upfront. Rental properties require a long-term commitment to keeping the property in good working order and making it a profitable venture for many years to come. If you are considering this business and the above things are a deterrent for you it might be a good idea to obtain the services of a property manager.

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Title: 

Where Real Estate Investing and Speculation Collide

Word Count:

865

Summary:

Investing vs. Speculation is a collision of epic proportions!  What's the difference? Lots. Read on.  The difference can be the difference between big money and big trouble!

Keywords:

real estate investing, real estate investor, rehab real estate, distressed property, fixer upper, hard money

Article Body:

Some uninformed folks would describe someone who rehabs distressed property as a "speculator" or even a "property speculator." Don't be fooled! There is a VAST CHASM of difference between rehabbing and property speculation.

Let me explain. According to Dictionary.com, the definition of speculation where business is concerned is:

     "Engagement in risky business transactions on the _chance_ of quick or considerable profit."

     "A commercial or financial transaction involving speculation."

While all investing...in anything... has some element of risk to it, I want to highlight a key difference between speculation and investment. When you speculate, risk is higher and by the nature of the word speculation, more risk than usual is implied. 

So, in that context speculation doesn't fit what I advocate at all. I'll explain further, but first let me illustrate the difference between investment and speculation in real estate rehabber terms from something that happened to me just this week.

I got a call; a "hot" lead from my wholesaler. The property was located on the fringes of a hot area of my town called Riverside. Riverside is an area where historic homes are being bought at inflated prices and fixed up very nicely! Put simply, properties in Riverside at in demand.  Well, that's in the heart of Riverside, but this house was on the distant edge of that part of town. 

The house was 934 square feet. Great area, yadda yadda. My wholesaler needs $81,900 and he was the house's "repaired value" will come in at around $120,000. He continually repeated something he heard from an appraiser about values "around" Riverside being a great investment over the coming years. 

I agreed to go and take a look. Before I did, I do some of my own checking. From the tax records available online, I learned that the house was built in 1942, just changed hands last year for $72,000 and was of wood construction with asbestos shingling on the outside. 

It didn't look good when I looked at the numbers. IF...and in my mind a big if...the appraisal came back at $120,000, then the 70% I can get a hard-money mortgage for is $84,000. So, my mortgage would only cover a portion of my closing costs, but none of the rehab. In addition, a few months ago, I bought a property a few blocks away for $38,000.  I'm just not seeing the value in this property BEFORE I look at it. 

When I looked at the property, it had some things going for it. It looked to be in pretty good shape and was on a corner lot. In truth, it needed $10-12K rehab. One negative is that it was square and there is no porch under the roofline to easily add square footage for increased value. The neighborhood is fair but two things jumped out at me:

  - There is a couple of very old apartment buildings on the street. Normally this would not bother me in the least, but these will prevent the yuppie crowd from rushing into the area in a buying frenzy.

  - Every other house within sight was also very small and of simlar construction. This means the houses on this street are not the architectural gems in the historic and sought-after areas of Riverside. 

If the money situation would have been better, that is to say, if this was a better investment, I would buy, Buy BUY! If the spread allowed me to buy and rehab it with little or none of my own money, I would have. 

But, if I bought this house and rehabbed it with considerable out-of-pocket investment, I would be speculating on the area, and I had my doubts. 

Of course I didn't buy it, but if I had, that would be speculating!

So, how would I define speculating?

  - Speculating involves taking on more than usual risk.

  - Speculating involve banking on values that aren't there today, and aren't projected to be there based on NORMAL conservative appreciation rates.

  - Speculating is banking on external or environmental factors to make you money. 

     ***External and Environmental Factors (that pertain to property) are factors that are not part of the property itself such as neighborhood, infrastucture, city, the paper mill down the road, rental demand, etc. ***

What is investing, but not speculating?

  - Buying property that you are "safe" in, meaning you could rehab it and sell it in the short term and make money. 

  - Buying property that will make you money based on what you bought it for, current environmental factors, and conservative appreciation rates.

  - Buying property such that hope is not part of the strategy! 

One of the key factors in STAYING a successful real estate investor is strict adherence to your investment strategy and criteria which are tied closely to your investment goals.  

A good real estate investor does what works over and over again and does not take on more and more risk as they go.  Smart investors only ventures into other, uncharted investment areas (e.g., single family homes to commercial property) after careful investigation.  

I think I can safely speculate that the most successful real estate investors incrementally decrease their risk as they gain experience.  Not the other way around.