So, you want to invest in real estate and get rich fast? You're living in an infomercial. Experts say the secret to successful real estate investing is research, research, research. Review your moves, get good advice and look for clues in sources such as the new Canadian census data. The payoff is two-fold: Ongoing cash flow and capital appreciation.

HERE ARE 10 STEPS TO BECOMING A REAL ESTATE MINI-MOGUL:

1. Evaluate your existing exposure. "People who already own a house should make sure they evaluate the percentage of real estate exposure already in their investment portfolio and then decide if they want to invest more," says BMO economist Michael Gregory. "Evaluate whether the benefits you earn from tax breaks on your second house are worth the risks associated with investing more."

2. Identify what is it you really want from the property. "Do you want to make a quick $30,000 in a very short period of time or would you be happy with earning $800 to $1,000 a month for the rest of your life?" asks Ozzie Jurock, former president of Royal Le Page and a Vancouver-based real estate author and TV personality. Jurock says investing in smaller towns is a good bet because even if the property does not substantially appreciate, one can always be assured of a fixed income for life through manageable rents.

3. Ignore national statistics. Focus on the numbers and trends that directly affect your market. Check if population growth, average income and job creation are faster than the provincial average, say experts. Also key is whether a major transportation improvement is occurring nearby. And don't let a single booming industry (such as automotive) or one high-growth sector (such as oil) influence long-term investing decisions.

IS THE AREA AFFORDABLE?

4. Is the area's affordability index in the hot zone (between 25 and 39 per cent)? RBC puts up a free affordability index chart on its website that can help investors. Experts say you don't want the property to be too expensive or too cheap: Too cheap and the renters become buyers; too expensive and property values may stall.

5. Buyer beware is still the golden rule says Maria Britto, former president of the Brampton Board of Trade, and realtor at Remax Realty Specialists Inc. Brokerage. Keep on top of real estate rules by contacting the governing bodies in the industry, such as the Canadian Real Estate Association, says Britto. For example, recent rule changes mean agents now need to sign contracts with buyers in an arrangement similar to what they do with sellers.

6. Use an experienced broker. Once you get your research done, use a broker who specializes in buying and selling houses for real estate investing.

7. Start small. For the first-time investor, Britto recommends trying a free-hold townhome (which doesn't have maintenance fees). "These are not only affordable, but there's always a good supply and demand for them and they can give you an affordable income," she says. This holds true in bigger cities such as Toronto, Vancouver, Montreal and Calgary, where immigrant populations are high. New immigrants prefer to rent for their first few years in the country and they tend to choose locations close to transportation systems, malls and grocery stores.

8. Is the location forward looking? Don Campbell, author of 97 Tips for Canadian Real Estate Investors, says it is crucial to determine whether the provincial and local political leadership creates a "growth atmosphere." One way to tell is by looking at whether the region's economic development office is helpful. If they are difficult to deal with, you can assume they will be the same in their dealings with potential employers looking to move to the area, says Campbell. Also, check to see whether the area's infrastructure -- sewers, commercial and industrial space -- is being built to handle future growth.

ARE BABY BOOMERS MOVING IN?

9. Is the area attractive to baby boomers? Check whether there are lifestyle options such as parks, recreation or water facilities nearby. The 2006 Statistics Canada census data shows that places such as British Columbia's Okanagan region has seen a significant increase in population since the last census as baby boomers look for attractive retirement locations.

10. Think suburban. The 2006 census report talks of the suburbanization of Canada. Larger lots and lower real estate prices are drawing more people to the suburbs and bedroom communities that are mushrooming across the country. For example, Chestermere, outside Calgary, has grown by 148 per cent.

Source National Post