While real estate is a highly profitable business, investors lose a lot of money each year due to bad real estate investments. Is it, however, sensible to live in fear of losing money?

You're unlikely to start investing in real estate if you believe the answer is "yes." You will never take any serious action if you are constantly afraid of an anvil falling on your head like in a Looney Toons cartoon. This will also eliminate any serious chances of success for you. The consequences of assuming real estate investing is a gamble incorrectly are severe.

If you believe the answer is "no," you may wonder what factors prevent someone from losing money in real estate. Is it simply a matter of knowing when to buy and when to sell? Is it only found in getting great bargains? Or are there more puzzle pieces to be found?

If we can understand what causes folks to lose money in real estate, we can take preventive measures to ensure it doesn’t happen to us. While no investment is without risk, smart investors understand there are certainly precautions that can be taken to mitigate that risk. As a first-time, repeat, or serial investor in real estate, the chances of exposure to a loss per investment is high but experiencing loss while entering real estate can be prevented. You do not have to be held in the jaw of a lion to know or believe that it devours. Below, are seven tips to always keep in mind when buying real estate.

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