Real Estate Investing ? ?The Neighborhood Factor?

Real estate investing can be a dream career when the process of buying and selling is mastered. The biggest challenge in real estate investing is not the money to get started or the availability of the product. Real estate investing's biggest challenge is judgment. Personal decisions in making the purchase, fixing up the right things, and making the sale require judgment that comes from experience. The second and 100th property should involve better judgment than the first.

An approach to the first acquisition in a real estate investing career involves analysis of the neighborhood.

If the target property is located in a familiar neighborhood, an analysis is clouded by past memories and feelings. Familiarity can preclude objectivity.

And if the target property is located in an unfamiliar neighborhood, the analysis is shrouded in immediate impressions that may or may not be accurate.

Real estate investing today must consider unfavorable elements like drug and prostitution traffic, crime statistics, and the overall visual impression of neighborhood negligence and abuse by property owners and/or tenants. The windshield view will not reveal the whole story.

Research at city planning and the police department might be a starting point, if the initial drive through the neighborhood does not arrive at a negative conclusion. Casual conversations with neighbors might provide clues. Watching from a perch unobtrusively during certain hours might be helpful, such as after school is out and after dark.

If analysis leads to the formation of good judgment, time is needed to assess "the Neighborhood Factor." When I plunged into my first year of real estate investing, no one warned me of "the Neighborhood Factor," and still I sometimes overlook it even millions of dollars in property purchases later. Buying $1 million in rental houses during my first year, and another $1 million in properties the next year did not leave me much time for analysis. However, when placing a makeover house on the market after the work is completed, "the Neighborhood Factor" has often come back to haunt me.

The bottom line for developing judgment about "the Neighborhood Factor" is the consumer's windshield view. The real estate investor can become enamoured over the potential profit margin in a "good deal." But the home-buyer and house-hunter make instant assessments upon a first approach to the house for sale. Their initial impression of "the Neighborhood Factor" is untrained and irreversible. And in real estate investing, the prospect's first impression of "the Neighborhood Factor" overshadows their impression of your labored makeover. More times than I like to admit, I have created a "Dream House" from a junker, only to experience a slow sale because of "the Neighborhood Factor."

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine - http://www.AAREIT.com/.

---

Selling Your Home ? Alone or with a Broker?

How do you decide whether to sell your home (or... Read More

Moldy Homes are a Great Investment

Have you seen this in your classifieds? -"Will pay $$$... Read More

How To Simplify Your Real Estate Buying/Selling Experience

Today's real estate consumer has a lot to consider during... Read More

Dubai or not to Buy? A Short Assessment of the Dubai Property Market

Never has there been such an ambitious and creative drive... Read More

Relocation Humor: Why I Bought A House

The Rental Experience in South FloridaReaders: This is based on... Read More

Buying To Let Top Ten Tips

Buying to let is considered a serious investment and should... Read More

How to Price Your Property?

A house properly priced is half sold. But there are... Read More

Home Equity ? Don?t Spend It on Risky Investments

The housing market has exploded in the last five years,... Read More

For Sale By Owner - Use This Tip To Sell Your Home Quicker and At a Better Price

Your house is for sale by owner (fsbo), Along with... Read More

I have a buyer for your property and I can sell it now!

A Realtor has just talked to you and said, "I... Read More

Probate & Obituary Marketing

I start my marketing with obituaries followed with probate filings... Read More

For Sale By Owner Listings

Selling your home on your own, without a Realtor, is... Read More

New Housing Starts Do Not Guarantee Aftermarket Sales

We have been studying a trend of new home buyers... Read More

Real Estate Bubble: Fact or Fiction?

The real estate market buzz across the country these days... Read More

FSBO: For Sale By Owners Chapter One

She reached the phone on its second ring. "This is... Read More

Cheap, Bargain, Real Estate; Good Deals, Below Market, Low Priced Properties Are Available...

Cheap, Bargain, Real Estate; Good Deals, Below Market, Low Priced... Read More

Prepare Your Rental Property for Occupancy

Among your many responsibilities as a landlord, the law provides... Read More

Renting a House

Renting a house or a room in your home is... Read More

Selling Houses: Psychological Effects of Landscaping

Buyers think they care more about the inside of the... Read More

Five Things to Help Sell Your Home Fast, and For More Money

Selling your home requires some thought and a clear plan... Read More

Reinventing Real Estate, Part 2: Online and Empowered Consumers Are Taking Charge and Paying Less

Demanding consumers"Internet buyers tend to be better informed on market... Read More

How to Build Your Free House

What if you could "place an order" for the construction... Read More

Buying Outer Banks (OBX) Investment Property

So, you're thinking of purchasing a rental property... Read More

5 Rock-Solid Real Estate Investment Strategies

Investing in real estate is more complex than simply buying... Read More

Selling Houses with Curb Appeal and Design Psychology

Curb appeal is the most important challenge you'll face when... Read More

Buy FHA HUD Homes

FHA HUD homes are those dwellings that have been acquired... Read More

Real Estate Investing: Sales and Negotiation Skills are Critical

Do you want to build wealth through real estate? You... Read More

Essential Buyer?s Guide for Overseas Real Estate

It's been said many a time that overseas real estate... Read More

Miami Property Booming for Foreign Investors

Miami tourism is growing and so is the Miami property... Read More

How to Create Cash Flow Out of Thin Air!

Want to see a trick every real estate investor will... Read More

Property Investment: Spoiled for Choice in Europes Emerging Markets

You could be forgiven for thinking that property is the... Read More

A Singles Game of Real Estate

This discussion leans toward answering questions asked most often by... Read More

Buy or Sell First?

When it comes to home buying, the ideal situation would... Read More