In today's market, many people seem to be nervous about getting into real estate. The economy is struggling to pop back out of a recession, rumor has it that loans are more difficult to get, and employment is less certain than it once was. These things are true, yet right now is a great time to invest, because interest rates are at historic lows, and it's a buyer's market.

Whether it's in your home or an income-producing property, there are several benefits to investing in real estate.

1) Appreciation in the value of the property:

As a general rule, real estate appreciates or increases in value over time. It's a limited resource affected by supply and demand. There are two types of appreciation. One is under your control, and the other is not. Internal appreciation is under your control. It comes from improvements made to the property, such as adding square footage, doing landscaping, or updating the home. External appreciation, however, has little to do with the actual property and more to do with economic forces. When more people are buying, values tend to go up.

2) Leverage:

This means using other people's money to provide a greater return on your investment than the cost of the borrowed funds. No other investment offers the ability to use such a high loan to value ratio as real estate. The amount of leverage that can be used on a property varies depending on the type of property (for example, principal residence vs. investment property), and the quality of the borrower's credit.

3) Tax advantages:

There are tax advantages to both your personal residence (tax deduction for interest paid on the mortgage) and investment property (multiple expense deductions). Talk to your accountant about the tax advantage of real estate ownership.

4) Paying down your mortgage:

/with the ability to borrow, buyers purchase with other people's money. As the loan is paid down, the buyer's equity, or ownership, in the property increases.

5) Cash Flow from rental income:

Similar to a stock that pays dividends, a rental investment will provide a steady stream of income that may very well be greater than any stock dividends. The money comes in, even when you're not working.

6) Interest rates are at an all time low:

The cost of funds makes real estate investing even more attractive.

7) "Steal of a deal":

In a buyer's market, there is a large supply of homes, which puts buyers at an advantage.  Buying a property at a reduced price gives a buyer instant equity, if the price is below market value.

Keeping in mind the money-making philosophy, "buy low and sell high," now just might be the perfect time to consider making real estate a greater part of your investment portfolio.

Choosing a Home Inspection Company

Credentials of Home Inspectors

It is absolutely imperative that your home inspector meets the requirements of all laws and regulations in your state or province. You can go online to see current laws and regulations for your state. Most states have regulations requiring home inspectors to be licensed, including passing a certification exam and fulfilling continuing education requirements.

It is wise to ask if the inspector is a member of a professional Home Inspection organization. Especially if your state does not require home inspectors to be licensed, it is important that the home inspector belongs to an association and abides by a set of standard practices and code of ethics that
require professionalism.

• Some notable national home inspector organizations are: the American Society of Home Inspectors (ASHI), National Association of Certified Home Inspectors (NACHI), National Association of Home Inspectors (NAHI), Canadian Association of Home and Property Inspectors (CAHPI). There are also similar state-level organizations which require their members to adhere to strict standards of practice and continuing education.
• The best home inspectors have proper training and experience. There are several companies that provide hands-on training. Additionally, many inspectors have been in building trades for several years. They have extensive working knowledge of home construction.
• Ideally, the inspectors should be referred by someone other than you. It is in your best interest to allow your clients to choose their own inspectors. Like all of us, Home Inspectors are human and may make mistakes. If you referred the home inspector, you might lose the trust of your clients (at a minimum) or be held liable (worst-case scenario).

The Actual Home Inspection Report

• Quality home inspections include reports that describe the condition of each item inspected. The best reports are those that are created using home inspection software and include pictures and comments specific to your home.
• Home inspectors who use this special software can often deliver the report on site. Some inspectors send their reports via email. Such Internet report delivery is often important for out of town clients, instead of messy faxes or costly overnight shipping.
• It is a good idea to request a copy of a sample report to ensure that it is detailed and easily understood. If you can't understand the report or if you lose interest reading extra useless information, you may not even read your own report, and you may miss important information.

Look for credentials, experience, and reputation over price

Don't be fooled by fancy reports