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/.

---

Fraud in Real Estate, Are You Being Victimized? - Part II

The phone range and Peter was on the other end... Read More

How To Build A Million Pound Property Portfolio

Looking to quickly build a million pound property portfolio? You... Read More

Home Equity ? Don?t Spend It on Risky Investments

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

Home Buying Checklist ? Windows

If you are in the market to purchase a home,... Read More

OPM - The Art of Leveraging

Equity lender, hard money lender, private investor or what ever... Read More

Selling by Owner Escrow or Closing Checklist

Home sellers should keep on top of their pending sale;... Read More

Selling Your Home Quickly, Even if You Have No Money For Repairs

Do you need to sell your home quickly? If so,... Read More

How To Best Negotiate A House Deal

Whether it's selling your home or buying a home, more... Read More

Understanding Real Estate Terminology

Purchasing a home can be a complicated and confusing process,... Read More

How To Get More Money For Your House

If you are thinking about selling your house, you should... Read More

Is An Old Home for You? ? The Pros

If you prefer a home that is unique and has... Read More

Rehab Your Way to Wealth: The Quick Way to Fixer-Upper Success

Completely rebuilding a house is not necessary to make money... Read More

A Crash Course On The Payout Options Available To You When Selling A Mortgage Note

Okay, let's take a look at the typical payout options:Full... Read More

Fixing Houses for Resale: Three Beginning Steps to Increase Profits and Have Fun

Real estate investors specializing in fixers make higher profits when... Read More

European Second Home Prices Wilt in Drought

Spain and Portugal have suffered one of their worst droughts... Read More

Sell Your Home Without a Realtor and Save Thousand$$$

A typical real estate commission on a $234,000 home (national... Read More

10 Frequently Asked Short Sale Questions

1. What happens to the seller's credit rating when they... 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

Secrets of Making Money from Real Estate - Part 4

Analyzing and finding the right property deals:Firstly read my other... Read More

Buying New Construction...How Do I Begin?

The prospect of shopping for a new construction residence can... Read More

How to Make Money in Real Estate Without Doing the Scrunch Work

If you don't have the time to invest working on... Read More

How To Buy Property in Spain Safely

Buying property abroad is not an undertaking one should embark... Read More

10 Easy but Essential Steps for Home Selling Success

They say that the whole process of selling up, buying... Read More

Realtors: Forget Your Address?

It's a large real estate agency, and the company depends... Read More

The Echo Boomers - The Next Big Consumers

The Echo Boomers or Generation Y currently make up about... Read More

10 Top Considerations For Those Buying Property Abroad

Are you one of a growing number of people considering... Read More

Dramatic Profits From Preconstruction Real Estate Investing

The preconstruction process is an innovative real estate investment opportunity... Read More

Successful Property Letting And Management

Successful Property Letting And Management is not something that just... Read More

No More Estate Agent Fees

Follow a few simple guidelines, and marketing your own home... Read More

Real Estate Investing Contracts on Toilet Paper

Even if your real estate contract has been written on... Read More

Why Commercial Real Estate is the Hottest Retirement Asset

For small business owners, commercial real estate investment is the... Read More

The Real Estate Bubble-When Will it Burst?

More and more individuals are realizing that real estate is... Read More

Real Estate Investing Deals That SkyRocket Your Net Worth 10-Fold

Consider these parameters for a real estate deal:Property Value: $250,000... Read More