Today many people wish to invest in real estate as part of their financial investment plans. And to do that one must take the time to develop their investment program thoroughly. As with any plan, it is important to monitor and possibly modify the investment on a regular basis, with the changing market conditions. The safest way to make money in real estate is through prudent and cautious investment.

One must not look upon real estate as a get−rich−quick scheme. There are many who adopted that attitude −to their misfortune. Some real estate seminars and books promote the concept of becoming rich through property tax sales, foreclosure sales, quick property flips, etc. In Canada, extreme caution is advised, as these options are not always applicable, or they are applicable only with considerable difficulty and risk. Money can be made in real estate through informed and cautious application of basic principles, formulas, and systems.

Investing in real estate gives an investor one tool that is not available to stock market investors: leverage. If you want to buy a stock, you have to pay the full value of the stock at the time you place the buy order. Even if you are buying on margin, the amount you can borrow is still much less than with real estate. Most "conventional" mortgages require 20% down. However, depending on where you live, there are many types of mortgages that require as little as 5% to 10%. This means that you can control the investment property and the equity it holds by only paying a fraction of the total value. Of course, your mortgage will eventually pay the total value of the house at the time you purchased it, but you control it the minute the papers are signed.
This is what emboldens real estate flippers and landlords alike. They can take out a second mortgage on their homes and put down payments on two or three other properties. Whether they rent these out so that tenants pay the mortgage or they wait for an opportunity to sell for a profit, they control these assets despite having only paid for a small part of the total value.