While there is the possibility to make a significant amount of money, you much choose how you invest very carefully. If you are purchasing a property to "flip", be sure to get material and labor quotes prior to purchasing the home. Even more importantly expect the total cost to run over your initial estimates. You can almost guarantee that the final numbers to rehab or rennovate a home will be more than expected due to unforseen expenses. Experts differ on how much of an overrun you should plan for, however it is safe to say the larger the project, the larger the contingency fund you should have in place.

Another popular myth is that Real Estate only appreciates. In general, real estate does usually appreciate, but in some specific areas market values are inflated making and an instant equity purchases hard to find. Remember: In real estate investing, you make your real money when you buy, not when you sell.

As in any business, always plan for unexpected problems. You should have enough money put as side just in case something happens during the time you own the home.

Most of the popular real-estate investment courses are the same material re-hashed. The smart investors build their own equity into the deal, instead of relying on appreciation to make their profit. If you want a $100k property, find someone who will sell you a $100k property for $70k. That way, if the property doesn't appreciate (or worse, DEpreciates)...you'll still have equity. It all comes down to finding motivated sellers.

Also, many RE investors will try to justify "negative cash flow" by the fact that they will eventually be able to raise the rents and make it up. Maybe, maybe not. RE taxes will also go up, and likely homeowner insurance rates will go up too with all the claims around the country. Why not buy something with positive cash flow NOW, and build your empire on solid ground?