Real Estate has been a reliable long-term investment strategy for centuries. However, before you try your hand at investing in real estate, you should take precautions so you don’t get burned.

1. Educate yourself about the process. It’s not as simple as just buying a house and selling it for more money.

2. Realize real estate investments take time. This is a long-term investment, not a quick turn around. You’ve heard of houses that flip for a profit, but keep in mind that takes skill and connections. Most profitable real estate investments are conducted over time.

3. Make sure you have enough capital to handle surprises. Between vacancies, bad tenants, vandalism, and surprise improvement costs, there are many ways to get caught with high bills and no income for stretches of time while working with real estate investments. You’ll need to have extra cash available in case a house needs more improvements than you anticipated (and first time investors typically underestimate the costs of the repairs necessary) or an inspector gets picky on something pricey, or you have a stretch where you can’t find a decent tenant (or worse, you have a bad tenant who doesn’t pay and is wrecking your property.)

4. Chose a small investment to start with. Don’t take on something huge like commercial property. Cut your teeth on something small. Many first time investors buy duplexes and live in one half while they rent the other half. This gives them experience and capital at the same time.

5. Only buy desirable property. If you buy in a bad part of town, you may not be able to sell or rent the property for a decent price no matter how much you improve it. Only buy risky property if you have experience and connections with inexpensive contractors and a good property manager who assures you ahead of time that he or she can find you a tenant for that area. Start with something safe – a place you know people will want to live.

6. Use an independent inspector before you buy. Make sure you have the total picture of what needs to be done before you sign for the property.

7. Set aside money for ongoing repairs. If you’re thinking about renting out the property, keep in mind that tenants break things and usually do not treat property with the same respect an owner would.

8. Take a look at the surrounding houses or duplexes. Are they well-maintained? Would you be scared to live there, or would you feel comfortable in the neighborhood? Check the crime rate of the area.

9. Hire a property manager. Having a buffer between you and the renter is worth the expense, especially if you plan on moving on to work on a subsequent piece of property.

10. Check the real estate market before you buy and make sure you’re really getting a good deal. Make sure you don’t buy just because you’re excited and eager to get started on real estate investing.

Patience pays off big in the business of real estate investing. Take the time to check your facts and get the right property. You’ll be glad you did!