As a beginning real estate investor, we’ve all looked started looking at properties, and most of us come to a point where we start seeing houses in a very low price range.
We ask people who have invested real estate, “what about these cheap houses in this neighborhood?”, and you’re immediate response can often be “Stay away from that neighborhood!”
That was the response I got, and a good thing I didn’t listen and I considered all options, else I wouldn’t have found the great deals I have today. I want to explore that immediate gut reaction we get from experience real estate investors, and show how that isn’t always the best advice for a new investors, and that a more appropriate response can be given to really guide new investors in a more affordable way of investing in real estate that can end very successfully.
Let’s face it, when we ask for advice on a new idea we have, we are looking for someone with experience to validate our ideas more often then not. When people told me to “stay away from certain neighborhoods,” I was always skeptical. I always thought to myself, “Have you actually gone and checked that neighborhood out?” Sadly, or maybe not so sadly, the answer was always, and unequivocally “No, I haven’t.” And that is the problem for newer investors: You don’t want to make a big mistake investing, as this may be your first big venture, but the homes that you can easily afford to fix, flip, or rent, “experts” are telling you are going to fail at and to stay away sight unseen. That advice may not be appropriate for you, and can cause you to wait and wait for that perfect opportunity in a pricier neighborhood, but those opportunities aren’t just sitting …read more