For those just getting their feet wet in real estate investing, picking that first property can be a knee-knocking experience. Of course, the objective is to make your choice based on purely economic parameters. But clearly, when it comes to taking a risk with your own hard-earned money, that can be easier said than done.

Many times, when it comes to deciding between Property “A” and Property “B,” emotions will take over and attempt to dictate what you should buy. Many novice investors indignantly declare, “I refuse to purchase any building that I wouldn’t live in.” If you recognize yourself making that statement, you should realize that you’re on the verge of leaving lots of great opportunities behind for someone else to discover.

But don’t fret, you are not alone. In fact, it’s easy to see why emotions rule the day—you’re fearful of losing what little money you have been able to save. In fact, many will argue that the fear of losing their nest egg is as much (if not more of) a motivator as is the promise of gain from investing it. To illustrate, let’s say you were invited to a get-together at 9 PM to learn about a business opportunity that could very well make you $1,000 on a $5,000 investment. After a bit of thought, you might decide to spend that time watching the news or Seinfeld reruns on TV instead. But let’s turn the tables: What would happen if you got a call and were told you would lose that $1,000 if you didn’t go to the 9 PM meeting? Precisely.

There is no shame in a bit of apprehension. In fact, playing the devil’s advocate will usually help you make prudent decisions along the way. But beware unfounded fear about losing money by buying the “wrong” building could very well keep you from obtaining just the perfect fit for your long- term plan. Thankfully, unlike investing in commodities such as stocks and bonds via the advice of a so-called expert, there are concrete things you can do in this game that will minimize the risk of ever overpaying for a building, namely, learning how to value property accurately for yourself.

Expert help is nice, but when it comes to protecting your own nest egg, the peace of mind that will come from conducting your own analysis will be nothing short of invaluable.

The installment sale is another significant technique for deferring  payment of capital gains taxes. Here, sellers elect not only to  sell property but also to put up some or all of the financing needed  to make the deal work. Because the property is being sold now but  paid for later, such deals are called “installment sales.” Where taxes  are concerned, an installment sale differs from the 1031 exchange  because you actually sell the property without getting a new one in  return, but you still defer paying some or most of your capital gains  taxes. Here’s how:

Until you actually receive the profit from the sale of  your property, you don’t owe the IRS a penny. Instead,  with an installment sale you would be carrying the note  (and your profit from the sale) long term and receiving  interest-only payments from the buyer. The idea is to keep  earning a high interest on the taxes due for many years.

By doing this you would delay paying the capital gains  until the contract is complete.  The rules for qualifying for an installment sale were significantly  modified by the Installment Sales Revision Act of 1980. In the  past there were rules regarding the amount of down payment and  the number of years needed to qualify. These no longer exist. The  advantage of an installment sale now is that you are required to pay  capital gains tax only on the amount of the profit you receive in one  year. You pay the balance of the tax due as you collect the profit in  subsequent years.

If you do not have ready cash to pay for your investment, you need to borrow money. Depending on the country and type of investment, there are several options.

Local bank. Taking a mortgage in a bank located in your country of investment may be constrained by currency exchange control rules. Another concern is that local banks or lending institutions may charge nonresidents higher rates of interest.

Bank where you are a resident. You may have trouble finding a bank that is willing to loan you money for an investment outside the country. In addition, if you are using retirement funds, you may have other considerations.

Developer. New developments sometimes offer their own mortgages and financing to increase sales.

International institution. There are a growing number of international mortgage brokers that offer products that are tailored to meet the needs of international investors. These are good options, because these companies are familiar with the processes and issues applicable to nonresident investments, which a local bank may not be fully aware of.

Price in itself does not determine the value of an investment property. When purchasing a property, you look at whether it’s in concert with your goals, and other factors such as appreciation and cash flow. And then there’s the actual cost of the acquisition, which is important to take into account. Price is what first attracts you to the deal—and it is negotiable. But almost without exception throughout the world, the agreed-on price does not include the costs to complete the purchase. In the United States, you can easily calculate the costs because they are generally consistent with a HUD-1 closing statement. Outside the United States, the costs vary from country to country. Many of the elements are similar, so you can translate the knowledge you’ve gained from U.S. transactions, but some you may not have any experience with. For example, in France, the fee level can be affected by the age of the property—new properties have lower fees. Some countries have stamp duties, value-added taxes, and a variety of registration and conveyance fees. In addition, when you are investing beyond your backyard, double taxation, currency rates, and international mortgage rates can make the purchase more expensive than anticipated.