Is this great deal, really a great deal?

Mortgage rates are at historic lows at the moment. For many of us,
that is good news. At the same time, the housing market contains a glut
of homes in many areas of the country, which has driven the price of
real estate down dramatically. In some states, such as Nevada and
Florida, home values have been cut in half over the past few years.

These facts can light a fire under some people, causing them to get in a
rush to invest in real estate, and to invest in real estate quickly.
Stock market losses, devalued 401K plans, and anemic IRA returns can all
add fuel to that fire.

Making a major purchase based on emotional considerations, is often a
mistake. Then again, the current market may be agreeable to the savvy
investor. If you know the market, have confidence in the property, feel
you can afford the risk, and have a long-term plan that the purchase
plays a role in – jumping into real estate at a steeply reduced price,
while financing is at gleefully low rates, might be a good move.

But take a moment to think before you jump. Anyone considering buying
real estate as an investment should consider their qualifications very
seriously. For while the potential for profit certainly exists, the
potential for heartache, misery, massive financial losses, and legal
entanglements exist, too. The variable that determines which deal is a
great deal, and which deal is a nightmare-in-waiting is often the level
of experience the buyer possesses.

Before making any significant financial change to your life, and
potentially, your long-term future, it is a good idea to do your
homework, and enlist the assistance of experienced men and women who can
offer valuable insight. Honestly evaluate your aversion or acceptance of
risk before you sign any documents or accept any offers. A pause for
reflection and study can be a lifesaver when you are preparing to plunk
down a year's salary or more on an investment, whether you intend to
live in the home, or profit from owning it as an investment.

Financial security can take years to build up. But it can be washed away
in a flash as the result of a single poorly made, hasty decision.

So build your team, create your plan, and move forward with steady
confidence. When you have all your ducks in a row, you just may find a
great deal, that really is a great deal – and dodge the ones that were
really big fiscal anchors disguised as once-in-a-lifetime opportunities.