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. How do you do this in reality?

The short answer is: Fixer-Uppers!

Planning, preparation and research are the keywords. Don't just charge in and buy something that's wildly expensive and expect to sell it at a profit a few months later. That may work in a boom market, but if you want to deal in real estate on a regular basis, you can't just hang around waiting for boom times to happen. You need to add to the value of the property yourself rather than relying on a boom in prices for your profit.

There are always real estate bargains to be had if you know where to look. What you need to do is buy something that is reasonably priced, then add value yourself by improving it. Don't necessarily get into structural alterations. If you've done your homework, there will be no need for that, anyway. Never buy a property without knowing that the foundations, walls and roof are all basically sound.

Do the simplest things that will give you value for money; a new coat of paint, new floor coverings and even a new kitchen if the old one looks shabby. Light fittings, new taps and door hardware also smarten up real estate at a relatively small cost. Don't forget sidewalk appeal. A well-trimmed lawn and some good quality flowers or shrubs along the front fence will attract a homebuyer as much as a neat and clean house.

You can even do this with a rental property. Once the place is smartened up it will attract more rent. An increase in your rental returns will help you happily survive such things as interest rate rises, so renovate your rental property, then increase the rent by up to 20%. This will lower your financial risk, increase your cash flow and make sure you have enough to cover any unexpected costs like repairs.

By buying fixer-uppers, rehabbing them and re-selling at a profit it is possible to create an instant income stream. You don't stop with the one deal of course, but re-invest some - or all of your profits in the next deal. How much you re-invest depends on the amount of debt you are comfortable with. You can work this out once you begin to know your market. The lower your debt is, the lower your risk will be.