With housing prices and mortgage rates at all time lows many people are looking to take advantage of these historic conditions and invest in real estate. However, for those without any experience the prospect of entering into unfamiliar territory may seem daunting. While exercising prudence with any type of investment is advisable fear of the unknown shouldn’t completely dissuade you from pursuing what could be a valid opportunity to generate monthly positive cash flow. The following are some common concerns that many people contemplating becoming real estate investors encounter along with some possible solutions that my help to assuage their misgivings:

Even though home prices have fallen significantly the prices are still too high for me to afford anything in my area. Let’s face it, these days not many of us are flush with cash. While it’s true that housing prices have fallen to historic lows, coming up with the down payment for an investment property may still not be a feasible option. Even if a down payment is within reach many people may not feel comfortable parting with a significant chunk of their savings, especially if their employment status is uncertain. While financing a property in some sections of the country may not be possible there are other areas where the home prices are more palatable and you can still potentially generate a decent positive cash flow. Indianapolis, Kansas City, and Memphis are some examples of cities that may offer properties for a relatively low price. There are builders in most major cities that specialize in selecting, refurbishing and selling invest properties, often at below market values.

I don’t want to deal with tenants or fix leaky toilets. Of all the concerns, this one is probably the most common. Many people are understandably apprehensive about subjecting themselves to the hassles of collecting rent from delinquent tenants, bookkeeping, and answering service calls in the middle of the night. What’s more, if you decide to buy property in another region of the country you may be wondering how you could possibly manage it effectively. The simple answer is to hire someone else to do it for you! For a relatively modest monthly fee you can have a professional team take care of the day-to-day operations associated with your property. This option makes sense especially if you’re just starting out. Property management companies typically have relationships with local plumbers, electricians, etc. who provide them with special rates not available to individuals. This ultimately means lower costs for you the investor.

I’m not sure how to select the right property or who to hire to refurbish it. Many people dream of finding that “diamond in the rough”, especially after watching house flipping shows or reading articles about buying distressed properties on the cheap. However, the reality is that doing so requires a tremendous amount of time, work and expertise. Several factors go into finding a promising investment property including the neighborhood the home resides in. You could find a great deal but if it’s in a bad area with several other vacant properties you could be setting yourself up with a house that has little chance of appreciating in value and that is difficult to rent out. You may also find that securing favorable purchases with local banks can be a challenge. Finally, you may wonder about who to hire to fix up a property so it is up to code and ready for a tenant to move in. If you don’t have any experience in this area it can be difficult to know if a contractor is being fair in their estimate or taking you for a ride. Once again, it usually makes sense to enlist the services of a professional company to handle such matters. Profession builders have the experience and the network to facilitate the process of finding, fixing and purchasing properties. Often times they have relationships with bankers and contractors which allows them to negotiate special deals not available to individual investors. If you’re just starting out in real estate investing you could probably save more money and end up with better results by hiring a team as opposed to going it alone.

The good news is that there are many companies out there that cater to those individuals interested in leveraging the services of a professional team! Turnkey Real Estate companies can offer all of the services and benefits mentioned above in one complete package. They take on all of the risk up front by finding, purchasing, and renovating properties. Then they offer them to prospective investors, often times with tenants already in place. Their team usually includes a property management company that works in conjunction with the builder to ensure a seamless transition once you’ve decided to take over the property. They can also typically refer you to other professionals in the industry for matters ranging from insurance to asset protection. This all equates to a deal that allows you to generate positive cash flow while minimizing your risks!