These are seven golden nuggets of investment property advice.Take it from an experienced property investor who's battled long and hard in the investment trenches.  Or for those of you who have been around for a while, I'm right there beside you in the trenches.

Pitfall #1: Listening To The Real Estate Agent's Advice

In most cases, there really shouldn't be a real estate agent involved unless you're attempting to purchase bank owned homes.But let's say there is one.Here's my advice to you.  Know than when a real estate agent gets involved in the investment property situation.

The price always goes up.

Whenever a real estate agent has provided me with property information, it has been slanted and inaccurate at best.  Never trust them and always verify all the property information you need in order to make an informed investment decision.

Pitfall #2:  Dealing With An Unmotivated Seller

With the current over supply of foreclosures, bank foreclosed homes and REO's in today's real estate market, you will more than likely have more close encounters with real estate agents.  Most of them are clueless about what we do as real estate investors and cannot really help us. 

If you're an experienced pre-foreclosure investor, you already know you should only be dealing with motivated sellers.Motivated sellers have compelling reasons to sell such as, divorce, loss of job, illness or addiction.  You want to help people out of these difficult situations and buy investment property at substanial discounts along the way.

Pitfall #3: Not Having Your Exit Strategy In Place In Advance

This is fundamental to real estate investing, but for some reason, many of us forget about this one.It's like sitting down on the toilet and then realizing there's no toilet paper lying around.Those who struggle, seem to get the order mixed up.Have a solid exit strategy in place BEFORE you put down a dime on your next piece of investment property.No matter if you plan on selling the property to an end buyer or renting it out for long term cash flow - begin with the end in mind here.

Pitfall #4: Not having Your Funding In Place

Show me the money. That should be your guiding light for this pitfall.If you have a solid business relationship with a local banker, take the time to make it even stronger.It's really powerful to be able to turn on that financial faucet when you need it.If you don't have an established banking relationship, take the time necessary to cultivate one. 

Pitfall #5: Over Paying For Investment Properties!!

If you're paying more than $.50/$1.00 (that's fifty cents on the dollar) for your deals in today's market, you're paying too much.investment property at deeply discounted prices}.If you pay too much for the investment property, you'll be really sorry.  Not a good place to be - do the math and the math will tell you what to do.

Pitfall #6: Investing In High Risk Neighborhoods

Some houses that seem cheap end up becoming very costly.  If you wouldn't send your wife out in the neighborhood at night then it's not a good idea to invest.  I've made this mistake and trust me, it's a lot of unnecessary work and hassle.And get ready to buy a new pair of running shoes because you will be chasing a lot of rent. 

Listening To The Wrong Advice

If you're just gettng started in real estate investing, pay close attention where you get your advice from.The most expensive advice is always free.Free advice is always ends up being very costly.If you're going to follow somebody's advice, make sure they have a proven track record of success.