Real estate has challenges today, but those challenges do
not have to stop you from making money in real estate. A
ten year veteran real estate broker reveals insider secrets
on how to make money in any real estate market.

To keep expenses low you must be aware of your expenses.
Your expenses may be:

1. Property taxes
2. Insurance
3. Maintenance
4. Mortgage

Despite the fact that an investor is not eligible for
exemptions on income property, there are other ways to
decrease the property taxes.

The investor must first understand how property taxes are
calculated by the treasurer. To calculate the property
taxes, the tax rate is multiplied by the assessed value.
The tax rate consists of:

1. Police
2. Fire
3. Schools
4. Library
5. Trash removal
6. Health
The assessed value in most states including Indiana is some
variation of the market value for the property.

The investor can lower his or her property taxes his or her
property taxes by examining what the property is assessed
at. Filing an appeal is recommended when the property is
assessed for more than the investor paid for it or when the
property is assessed more than the current market will
bear. By successfully filing the appeal, the investor will
decrease his or her expenses thereby increasing profit.

The investor can save money on insurance, as well. The
investor can have a higher deductible. Unlike car
insurance, the investor does not pay the deductible first,
then the insurance pays instead the deductible is deducted
from the claim.

The investor can also reduce his or her replacement cost to
80% of the value; therefore, the investor will reduce the
premium for the insurance. This tactic is only advised if
there will be enough available after the deduction to pay
the property's mortgage and/or money available to start on
replacement of the property.

Still yet another way the investor can save money on
insurance is by changing insurance companies. Yes,
shopping around is another way to save money on your
premium. Use caution here make sure you are getting
similar or better coverage than you had before when
changing insurance companies for a lower premium.

By setting aside a certain amount from each rental payment,
the investor can reduce the cost of major repairs. By
setting aside a little of the rent, the investor can be
prepare for major maintenance issues.

Another way an investor can save money on maintenance is by
having a home warranty. To cover most major components in
the investment property, it is recommended to have a home
warranty.

Shopping around is always the best way to save money on a
mortgage.

Making and saving money in real estate is done by
researching and shopping around for the best rates and
values.