Many people are wondering if it still possible to make a profit now that the boom has cooled off.

Yes, it is possible to still make money in real estate, even when the market is flat. You just have to know what you are doing. Basically, the idea is to create your own extra value on the property, rather than waiting for the 'market value' to push the price up.

In the realm of real estate, there are numerous ways to go about making profits. One of the most effective methods of achieving financial success is in dealing with a "fixer-upper." Home renovations are very important if you are in the business of making profits, so let's overview some of the key points that can help you in your ventures.

First of all, when you're dealing with a fixer-upper home, or any sort of renovation, it's important to keep in mind your main objective: to make a profit.

Real estate investing is a long-term business, so you have to think beyond the nearest transaction. A real estate investor may become a millionaire in a couple of years, that's true, but only if his or her reputation remains flawless. And it means there are some iron rules you must never break if you want to be a successful real estate investor.

Surprisingly enough, they are not about numbers or specific business tricks.

This is something that depends on your own circumstances. Remember that we are not now in the sort of market where you will naturally see a price rise after holding for a while. This is a flat market where the prices generally stay static. They might rise a bit and then fall a bit, but generally they'll bump along for a few years now until the next boom starts.

We all know that we have to do a bit extra work on our investment to get it up to scratch and make it appealing to Mr and Mrs Buyer. Remember, rather than spending less, they will be looking to spend the same, but get a bit more quality with their purchasing dollar. This pushes up the price on mid-quality homes - so we go for the low quality homes and fix them up, right?

We make them more attractive to the market and in fact we make them into those mid-quality homes that are now commanding a fair price.

When buying a real estate investment property you need to be aware that negotiation plays a big part on your bottom line, or the potential profit you could make. Below are 8 great negotiation strategies that you can use when buying real estate.

1. Check if the seller is motivated to sell the property
In real estate investing, dealing with someone who does not really want to sell their property is a waste of time - you should forget about them and move on, no matter how promising the deal might look like.

Investing in real estate is one of the most conventional ways of securing a financial future. However, to thrive in the real estate market, it is imperative for investors to have sufficient understanding of prevailing market trends and practices.

You have a strong chance of winning the real estate game if you have a solid network of experts in related fields along with sufficient financial backup.

You've taken that first step and are now ready to start investing in your first property. It may seem a daunting task, but below are some tips on how to avoid common pitfalls and help you get started.

1: Buying books and attending seminars about real estate investing, but never using what you've learnt in practice.

It's the most common mistake of investors.

Hidden costs lurking in your project can make the difference between profit and loss. There's really no way to avoid hidden costs when you're buying an investment property, but you can estimate their impact. You probably won't face every single one of these on every project, but the following list of possible hidden costs should give you an idea what to expect.

Buying properties that need some renovation gives you the greatest potential for a high return on your investment. You might see these homes advertised as handyman specials. One reason why fixer upper properties are such great opportunities is their low purchase price. The lower your initial price, the easier it is to make a profit. The need for repairs often gives you an advantage in price negotiations.

Your goal in real estate investing should be to make the most profit in the least amount of time using as little of your money as possible. Buying fixer-uppers and renovating them for resale is an excellent way to increase your profits. But how do you avoid becoming a renovator and losing sight of your investment goals?

You must focus on becoming a project manager.