Get Ready to Invest in Real Estate

My financial advisor said great real estate deals will be available in about 3 years. Of course, since it is a locally driven market, there are always deals to be found.

But there's no need to rush ahead. Get prepared instead. Here are some of his tips to get started in real estate investing.

• Self-education. Act like you're getting started to invest in real estate. Create a spreadsheet. Get familiar with sites like bankrate.com and realtor.com.

• Pretend you're going to buy homes and decide what type of homes you're going to purchase.

• Do your research: what's the crime rate, how are the schools, is the local economy strong and how are property taxes?

• Set aside as much money as possible in conservative vehicles so that cash is ready for you to use in about 3 years. These may include dividend paying stock and bond funds.

• Have a plan for the type of property you're seeking. Example: it could be a 2 bedroom, 2 bath with closet space and room to add on.

Start with the flipping of properties to make short-term gains. Let's say you find a below market house and you make about $50,000 in 9 months.

You put $25,000 in securities investments while $25,000 goes to the next project.

Check out your local real estate clubs. But remember, hold off investing until you've learned, read and perhaps even found a mentor.