At one of the many seminars I attended learning to avoid real estate investing mistakes, there was one particularly colorful presenter (whose name I can't remember) who was making an incredibly colorful point.
See, the tall, short, curly, red head with a touch of portly, speaker was telling this story of when he and his friend made a real estate investing mistake when they went down in his new Corvette to a really rough neighborhood to look at a potential deal.
When he arrives at the property there were some men out front who were hanging out on the street.
As the presenter describes it, his stay was short for one of the men walked up to the car and pulled out a gun, and made it really clear that they "were not welcome.
" "It ain't good in the hood" said the presenter, over and over again, his hand pointing up and down for emphasis, making the whole room laugh and after that performance, I doubt anyone made that real estate investor mistake.
From an investor's stand point, he has a point.
In neighborhoods that are war zones it is not unusual to see homes for sale for ridiculously low prices like $15,000 with potential resale values like $90,000.
It seems so tempting, but rest assured this is a big real estate investing mistake; it is "Fools Gold.
" You see, there is a reason these homes are so readily available.
No matter how low the price, this is a dangerous real estate investor mistake, it is not worth it when you factor in your property getting robbed multiple times, empty properties all around and most importantly; vacancy after rehab because there is practically no interest in living in these types of violent areas.
Most of the time as long as you set the price right, selling and especially renting should be a fairly straight forward process.
As long as the investor has done the proper research to avoid this real estate investor mistake by confirming that the demand is there.
A fairly straightforward process once someone shows you how.
To recap, stay away from war zones and you will have avoided this real estate investing mistake.