α-Fe2O3 nanoparticles were prepared via a precipitation method using each of three different precursors ((FeCl3, 6H2O), (Fe (C5H7O2)3) and (Fe (NO3)3, 9H2O)). The impact of varying the nature of the precursor on crystalline phase, size and magnetic parameters of α-Fe2O3 was examined. Powder X-ray diffraction pattern disclosed rhombohedral structure. The TEM and SEM results showed that the size of α-Fe2O3 nanocrystals was between 21 and 38 nm. FT-IR confirms the phase purity of prepared compounds. Raman studies showed the phonon modes. The TGA showed three mass losses, whereas DTA resulted in three endothermic peaks. The optical investigation exhibited that samples have an optical gap of 2.1 eV. The products exhibited the attractive magnetic properties with high saturation magnetization, which were examined by a vibrating sample magnetometer (VSM).