“To aim is not enough, you must hit!” — German Proverb
Optimism. I like it and I have a lot of it. However, foolish optimism can get you into trouble.
In the real estate world I have seen people that think they can take a falling down apartment property in a poverty ridden area and make it into a property that everyone would want to live in. It SOUNDS great BUT won’t work – most of the time. The biggest mistake I have learned over the years about property location is this:
You can change a property but you cannot change the neighborhood.
Read that sentence again because it will save you a bundle of money over your investment life. It makes sense to buy a property based on the numbers and the property itself, but the location also has to be good.
I have 3 quick litmus tests to discover if you are buying in the right location:
1. Visit the property multiple times over multiple days. Do not make the mistake of just going through the property on a Tuesday morning at 9:00 AM. Come back again at night and see how things are as well – even better if you can visit on a Friday or Saturday night.
2. Walk the neighborhood during your visits. Are you comfortable in the neighborhood? you should be because your prospective residents will want to be, as well.
3. Would you buy this property over again in 5, 10, or 15 years? Think about which way the neighborhood is going and “buy the property over again” in your mind in the future. Would you buy it again based on what you see?
The second mistake I see on this is a person that has little in way of money and resources and chooses to buy a really bad property where they are selling guns out of apartment #10 and drugs out of #11 because he or she could get it for low or no money down… This is typically done because after the purchase and gain control – THEN they can change the property.
Sorry folks. It is not going to happen. In “Think and Grow Rich,” author Napoleon Hill talks about being optimistic – BUT being REALISTIC too. In other words not ignoring the elephant in the room and hoping it will go away.
Be positive, be optimistic, be tough and have a great attitude. It is all-important but make sure you are REAL in what a property really holds for you.Do you want to learn more about investing in apartment buildings? Click the link below for my FREE 7-Part Investment e-Course, and I’ll also send you my FREE special report and teleseminar access, “How to Buy Apartments and Commercial Real Estate With No Or Low Money Down.” Download it free here: Apartment Investing. Article Source: http://EzineArticles.com/?expert=Darin_Garman http://EzineArticles.com/?Apartment-Investing—The-Biggest-Mistake-About-Property-Location&id=4742361