People have made fortunes in the real estate investing business. But, like every worthwhile endeavor, there is a right way and wrong way to go about it. The biggest pitfall for many is making mistakes that inexperienced investors are sure to make. Here are a few of the most common traps and some ways to avoid them.

o If you don’t go in with both short and long term plans you sink before you even get your boat into the water. Lack of any plan, let alone a good one, is what kills most investors before they are out of the starting gate. If you don’t know where you are going and how can you use the appropriate tools to get there? Don’t go in without a goal and a way to get there.

o If you go into any investing thinking that you will get rich overnight your in the wrong place. Go buy some lottery tickets. We have all seen the self-appointed real estate and investment gurus peddling their books telling you that they not only have the secret but are the inventor of the only successful book on the subject. If he were so successful investing why does he has to peddle books? Investing in anything is not an overnight success path. Settle in for the long haul.

o Build a team of professionals to help you with planning, research, marketing, etc. Don’t try to do this alone. You will also need to build good relationships with at least on other real-estate agent, a home inspector, appraiser, a closing lawyer, and a lender. Having contacts with remodeling companies, plumbers, roofers, a good electrician, painters, etc. will also save you enormous amounts of time and headache later.

o One of the quickest and easiest ways to get ahead in real estate is to start investing in fixer-upper homes. Most of these properties are owned by distressed sellers who want to unload it quickly to avoid taxes or more depreciation. These homes are generally easy to fix up and sell for a considerable profit. And don’t forget to consider buying a fixer-upper and renting it out instead of selling. One you have improved the house turn it over to a management company and let them deal with the day to day business such as collecting rents and maintaining the property.

Investing in real estate can be a very smart move. This type of investment does require a bit more work than, say stock investing, but the rewards are a more stable investment in a tangible asset that you control.