10 Important Rules When Investing in Real Estate

1. Don't put up your own Earnest Money when purchasing homes.

2. Never let a buyer move into the home before CLOSING AND FUNDING.

3. Don't explain what you do in detail to a seller while on the phone, must be in person.

4. Always take at least $500.00 in Earnest Money from a buyer when selling the home. 1% of the Sales price is an ideal amount of earnest money to collect.

5. Never make promises to a seller or a buyer. Nothing is guaranteed in this business. Plus, they don't expect a promise.

6. Always use all three contracts in every transaction. Don't skip any just because you find that you can in some transactions.

7. Never advertise for buyers without having a home under contract.

8. Never charge buyers up-front fees. Credit Report fees are ok, but charge just the amount you have to pay to have it pulled.

9. Don't offer "Services" to Buyers or Sellers. You are an investor, not a real estate agent.

10. Money you earn from a transaction must never be paid to a buyer. For example, you must not provide money to a buyer for down payment money unless the lender allows a gift program, and then only under the rules of the gift program. Additionally, you are not allowed to profit money on your own home purchase. In that case, you are the buyer and not allowed a profit.

To get more articles from this author please go to:

About the Author:

John Alexander has been training people to Investing in Real Estate for over 20 years. He has trained most of the Guru out there.


Rules investing Real estate

Houston Real Estate

Contact Info






Phoebe Guo, RE/MAX Realtor

RE/MAX Southwest
The Bill Moore Team
14905 Southwest Fwy.
Sugar Land, TX 77478
Tele: 281-207-5031
Cell: 832-768-6800