The REIPro Blog

Helping you Build your Real Estate Business
with Investing Tips from the Pros
Locating Real Estate Investing Deals
By
Chris Goff

Finding motivated sellers is the key to real estate
bargains. The better the bargain, the more you can profit. You should spend 90%
of your time locating deals. You can’t make any money if you can’t find the
deals. There are several factors to consider when choosing an area to start in.

 

Let’s review some of those factors:

·     
Price range

·     
Types of properties

·     
Investment Methods

·     
State and local laws

·     
Growth

·     
Rents

·     
Exit strategies

·     
Desirability

·     
Proximity to where you live

 

Types of neighborhoods

 

There are 4 basic types of neighborhoods in every market.

 

“A” Neighborhoods – High Income

High price point

Large homes

Historic areas

Gated communities

Highly desirable location

 

“B” Neighborhoods – Middle to High Income

One step down from the “A” neighborhood

Nearby shopping which include chain stores

Mostly owner-occupied

Vacant homes stand out

Fewer rentals

 

“C” Neighborhoods – Middle Income

Small businesses nearby

Mix of older and newer homes

Mix of owner-occupied and rentals

More flexible sellers

Good cash flow properties

 

“D” Neighborhoods – Low Income

War zones

Depreciation

Good cash flow

 

Once you determine your Investment strategy, you can then
determine which neighborhood would be best. REIPro covers every faucet of
finding deals, which strategies work best in each type of neighborhood with our
continued education.

 

Check out our Real Estate Investing Software, REIPro at: www.myreipro.com.