With the number of foreclosures in the market and the expectation that the inventory will increase, these types of properties can be a great investment. It’s important to do a careful inspection of these properties.

Here are 8 things that you should look out for in foreclosure properties.

1. Unheated house in the winter months could cause busted pipes and water damage. Check to see if the home was properly winterized.

2. Missing sinks, toilets and other fixtures. Make sure they have been properly removed and not ripped from walls and floors.

3. Peeling, bubbling and discolored paint, swelling in the walls or ceilings could indicate water damage and, potentially, moisture and mold.

4. Fungus growth in cabinets, behind drawers and built-ins could mean water damage.

5. Blocked drains and pipes can create a sewage backup.

6. Black soot, cobwebs, residue on walls and a strong oily odor could point to a malfunctioning furnace.

7. Watch out for lead paint and asbestos in older properties. If the property looks rehabbed, check with the local government to insure that permits were pulled and get the details.

8. Excessive painting of every nook, cranny, door and floor could be covering up mold. Same for discolored flooring.

As with any investment, be sure to do your due diligence before going to the next step in acquiring foreclosed property.

Landlords should do this twice a year to reduce liability and save on insurance bills for their rental property.

1. Smoke detectors. Have the batteries changed in rental property smoke detectors and carbon-monoxide alarms twice a year. Make the first switch on day light savings time (2010 daylight savings time is March 14th ) then again in mid October. Don’t forget to test them!

2. Change the heater and air conditioner filters on the same schedule. This keeps clear air coming through the system and also extends the life of the appliance which is less cost to you. If you have property located in hard water areas and the property has a water softener, make sure the water softeners are looked at and the salt replaced on the same schedule.

As silly as it seems, I prefer to have an independent party do these maintenance items rather then my tenant. I am sure my tenants can do this, but feel more comfortable and am happy to pay the small bill then to incur the much larger expense.

With housing costs averaging $17,000 a year we all need to find ways to reduce on our largest budgetary expense; our household.

Here are 5 ways to save you thousands of dollars this year!

1. Appeal your tax bill. Recent market declines mean you may be paying too much in property taxes. Contact your local assessor or tax collector for details. You may even be able to do it online.

2. Look into refinancing your property while interest rates are still low

3. Look into reduce your mortgage payments through a loan modification. Check out www.makinghomesaffordable.gov for details.

4. Consider boosting the deductible on your homeowners insurance policy.

5. Cut back on energy usage. Just dropping your thermostat from 70 degrees to 68 can save you big bucks.

If you read the headlines of papers like the Wall Street Journal you would think that being a landlord would be a disaster. Headlines like “U.S. Now a Renters Market, Landlords Cut Prices By 3% in 2010″ would scare off the best of us.

It’s important to read stories like this carefully. Doing so would tell you that a story like this applies to major companies who own apartment complexes and that the research came from that specific type of investment entity.

For the individual investor who buys and holds single family real estate, does this apply? The answer is “it depends.” When you actually think about it, would tenants rather live in an apartment or a single family home? Given the choice, my guess it they would choose the single family home.

Even if you have been in a situation where you have had to lower your rents in order to keep good tenants, you are still taking advantage of the tax benefits and depreciation of owning real estate. With the potential of inflation, inventory lessening and employment getting a bit stronger (depending on your marketplace) you may see rents rise in the future.

The message here is to hold on if you can afford to! What goes down eventually goes back up.

With the forecast of foreclosures still on the rise, one would assume that the rental markets and long-term strategy of real estate investing make sense. In my opinion, long term real estate can be a great strategy. In certain markets, however, flips or buy/sell strategies are making a comeback

From investors attending auctions in markets such as Phoenix, to investors acquiring delinquent tax liens in Florida to brokers or wholesalers representing out of state investors in Texas, to California markets that have gone through economic perils, who now have investors buying multiple properties with private funds, short term real estate investing can be profitable to those who know how to navigate the market and buy right.

While there is plenty of inventory out there, you as the investor must know the local marketplace, where to buy, actively participate in and be involved in the actual transaction, and of course, have the money or financing in place before you buy.

If you are serious about making money in real estate, you must educate yourself and be responsible for due diligence and the steps needed to follow through with the transaction along with an exit strategy for your investment. Never allow others to control the transaction or your money. Know what you are getting into and be prepared to present multiple offers. Most importantly, know when to walk away and when a deal makes no sense.

In other words there is to be no emotional decision making! This is the key to a successful real estate investor. It is about the numbers and only the numbers!

Good luck!

Welcome to 2010! It is the year of the ROTH conversion and the time to examine your retirement plans to make sure you feel comfortable with your asset allocation, your time horizon, financial assets that are a part of your retirement plan and your level of risk.

Experts have called the five years before you quit the workforce the most dangerous to your retirement plan. The only way to guarantee growth whether you have five or twenty years until retirement is to utilize your IRA by making the maximum contributions, and to invest in assets you believe will grow over the long term. In my opinion this means making the leap and becoming responsible for the investments you control in your IRA.

Compounding wealth with investments where you are comfortable, that can go the course and allow you the ability to invest in assets that the traditional advisers may not be in a position of offer, gives your IRA diversification and allows the opportunity to be in control of what specific alternative investments are a part of your IRA. Many of us depend on third party advisers to tell them what to do because we think we cannot invest on our own. This is not the case with a self-directed IRA.

For more information on how you can learn how to invest with your IRA, visit www.theentrustgroup.com. Entrust, the nation’s largest administrator of self-directed plans (with close to 30 years of experience), has a wealth of information on their web site to answer any question you may have.

If you want a more personalized experience, you can find the local offices closest to you and work with experienced professionals who know and understand your marketplace and are able to provide you with outstanding customer service.

You owe it to yourself to take advantage of the tax-deferred/tax-free possibilities that the IRA can offer.

The following is compliments of Linda Pliagas, California sales agent, investor and founder of Realty411 Magazine.

Who is the best person to take care of your real estate investments? YOU!

So, how does an out-of-state investor ensure their properties are being taking care of properly? Follow these seven easy techniques and you will become a PROACTIVE Property Manager just like the real estate masters we feature in Realty411 Magazine.

1. Choose the Best Local Manager, Even if Costs More.
Some apartment building owners choose a property manager based on their fee. They will choose the cheapest company in order to save money. Many different spiritual doctrines teach us that our true reality is often times the OPPOSITE of what it may actually appear to be.

This is also the case in the area of business. Sometimes by paying more now we actually save money in the long run. Good property managers are worth their fee, plus some! They have a difficult job, one that is filled with constant stress. Imagine, they have to hear it from the tenants AND the owners. Tenants want new appliances, new carpet, they don’t want their rent to increase and owners hate to spend money. They want income to surpass expenses and they want their rents to keep up and surpass the rate of inflation.

Great property managers are worth every penny they charge. Great property managers need to be treated with respect and should be admired and rewarded.

2. Communicate Effectively and Often
Many times, investors are hesitant to purchase long distance because they have an issue with trust. The gift of trust (it’s truly a blessing to be able to let go) is a quality that may be earned through effective communication. Don’t be afraid of asking questions.

Don’t be afraid to call and check up on things. It’s perfectly acceptable and recommended to call up every so often and check on how things are going. Just remember to be courteous enough not to call the first few days of every month as this time is usually the period where everyone is being worn thin.

I also like to get to know the staff, often the bookkeeper, assistant or receptionist can give you a quick update without even having to check in with your property manager.

An out-of-state property manager is a trusted adviser who has a fiduciary duty to serve you, just like your attorney, your financial planner, or your accountant. You therefore must feel comfortable enough to trust their judgment. If you don’t have this level of confidence that I’m speaking of, perhaps you have not found the right property manager for you.

3. Have a Team or Network in Place
Make it a point to meet people when you visit your targeted investment location, initially and thereafter. When I know that one of my buildings needs some work, I schedule it when I visit so that I can meet my handymen in person. I also like to get numerous bids and meet as many locals as possible.

I enjoy socializing when I visit my targeted investment areas, I’m not one to stay holed up in my hotel room and order room service. The more people you meet, the better handle you can have on your property. If you can, I encourage people to try to attend a local real estate investing club to meet other investors. Other local investors make wonderful acquaintances as they understand the challenges and benefits of landlording

I like to be able to know a few independent people who can visit my properties within short notice and email me photographs when needed. Great people to have in your network are: Local Realtors or Brokers, inspectors, appraisers, insurance agents, and loan officers who live in the area. Local service professionals are excellent team sources. An investor should become friendly with them.

4. Audit Your Property Regularly
I feel it is important to visit your property as often as possible. Once a year is great. Remember: It’s a tax deductible vacation!

Perhaps your investment is not in a resort location, but the money you make out of it could very well fund your true fantasy get-a-way in the near future. I know that people who work 9-to-5 jobs may not have the extra time to audit their property, that is why I think www.CashFlowCows.com is growing so rapidly because we take regular trips to visit our own investments as well as those of our clients.

5. Emphasize Curb Appeal
Make sure your properties are kept clean. If you are going to spend any money on your properties, a portion of it should be allocated to spruce up its curb appeal. This can really make a positive difference, not only in the value of the property, but it will also attract more desirable tenants.

Clean and tidy people gravitate towards well-kept properties. You will have a lot less deferred maintenance if you keep up the quality level of your buildings because it will automatically attract a different level of renter than a property that has trash spread about the yard or displays graffiti that has not been bothered to be painted over.

6. Take Action Now, Don’t Wait for Tomorrow
It’s important for those interested in owning real estate to realize that they themselves must take personal responsibility for their investments. In order for a person to thrive in life and in business, one must be ProActive. You can’t wait around for things to happen to YOU, you must make things happen.

If you have a vacancy, don’t just wait around for it to get rented, take action. I have actually found tenants for my out-of-state properties by using the great online tool called Craigslist. The real estate portal of http://www.craigslist.com/ offers great resources for investors. Many of my investor and real estate colleagues have also located outstanding deals on this website.

The fastest way to find a tenant is through word of mouth. If your tenants are happy, they will alert their friends or family members when a unit nearby becomes available. This is why it’s important to have a well-kept property. I also recommend having someone post a “For Lease” sign as soon as you know a unit will become vacant.

Another ProActive way to assisting your manager in procuring a tenant is to place a text ad in the local paper. The world wide web has really revolutionized real estate investing. You can literally find local newspapers online in virtually any corner of the globe (http://www.newspapers.com/) and place an advertisement quickly online.

When it’s more challenging to fill a vacancy quickly, I resort to “Specials”. My manager in Arizona recommended a “1/2 Month’s Rent Off Special”, which worked very well.

I also like the “Low Move-In Deposit Special” or the “Pets OK Apartment Special. Here is my ProActive Property Management Formula:

Sign + Advertisement + Craig’s List + Specials = 100% Occupancy

Having all of your units fully occupied is the name of the game in the landlording business.

7. Have a Back-Up Plan
The scientific theory of entropy states that the natural order of our universe is chaos. That everything left unattended will begin to fall apart. Whatever we focus our attention on will grow, whatever we neglect will begin to demise. This theory can be seen in our every day life.

If you don’t pay attention to your finances, what happens? You begin to shop needlessly or overspend compulsively. If you don’t pay attention to your apartment buildings what can happen? Tenants may not pay the rent or the building will have a lot of deferred maintenance, perhaps even worse can happen.

It’s important to always have back-up property managers, even if you are currently happy with the team you have, just in case. By utilizing these tips, an investor can feel more confident when they are ready to expand their real estate portfolio by investing outside the comfort of their own backyard.

Remember: Opportunities for real estate riches can be found around the nation; in fact, around the world…

Enjoy the journey of success in real estate, until next time.

Welcome to 2010. Experts expect this to be the year of the real estate investor, especially in Commercial real estate where big hits are due to get even bigger. So what is your investment strategy this year?

Here are my top 5 basic real estate tips if you are planning are dipping your toes in the market.

1. Have a plan. Know what type of real estate you want to buy, why, and know your investment objective. Income, cash flow, appreciation, or tax benefits.

2. Make sure you have an emergency cash reserve. Do not plan on letting just your investments pay for your life. Let your investments grow so you have a life in the future.

3. Do due diligence. I personally go and see any property I would consider buying. Do not depend just on the Internet. The Internet is a great research tool, but you still have work to do.

4. Become a great listener. Ask open ended questions and let the seller talk. Finding motivation directly correlates with how much you end up paying for a piece of real estate.

5. Know who is on your team of advisors. You need an attorney, an accountant, perhaps a property manager (unless you plan on managing yourself) a handy man if you are not able or willing to fix up the property on your own. There are other people you may want on your team but the key is not to go it alone.

Have any other real estate investing tips that you’d like to share? Send me an email at wisewomeninvestor@yahoo.com.

USA Today recently published the latest stats in an article that described the next onslaught of delinquencies and foreclosures. The Wall Street Journal had a similar article as did Money Magazine. The overall message I got from reading these articles is that 2010 looks like a great year to be a real estate investor, provided you have your financing in place.

If you are willing to hold property for the long term, the rental market maybe the best investment you can make. People who have lost their homes still need a place to live, those who cannot get traditional financing maybe longing for a long term arrangement that offers them emotional security and you, the investor who knows that you make money when you buy real estate, may finally be in a position to cash flow your investment!

My biggest recommendation (besides picking up our new book How to Make Money in Alternative Investments,) is to research the area that you are interested in buying in and know:

Vacancy rates
Rental Rates
Taxes, Insurance, HOA and other fees that you need to incorporate into your analysis.
Ongoing Property Values
Inventory
Foreclosure Rates
School system, crime and cost of living in the location you wish to buy.

For example, not all areas of Florida are in a depression. Do you know where to invest to get your biggest return?

Sure this takes work, but the long-term benefit to you might yield a better return than what you have been investing in this year. So as a gift to yourself this year, take your time to learn the ropes! It may be the best holiday gift you’ve ever gotten!

As a real estate investor I not only keep tabs on what’s happening now with real estate markets, but I also keep an eye on how what’s happening now can affect future markets.

Based on what I have read, seen and heard, I have 2 predictions for 2010.

1. Homeowners who are behind in their payments will continue to walk away from their homes.

2. As millions of Adjustable Rate Mortgages will reset, it is expected to cause a further down turn in the market.

If you are a real estate investor, you may be wondering what this means to you? It means that it’s time for buyers to get ready for 2010 now with these 2 simple strategies!

1. Know where you will get the money to take advantage of markets that may be the lowest in a decade.

2. If you can swing it, plan to buy for the long term with the expectation that rents will rise!

No matter what the outlook is for the real estate market in 2010, savvy real estate investors can always find a silver lining. Happy Investing!