Buying the Neighorhood
You may find a gem of a property that requires no maintenance and would make an excellent investment. Unfortunately, the yard next door is a jungle, and getting to the front door requires a machete. The house on the other side has a garage door hanging by a prayer and the “vintage” automobile they’ve been wanting to restore has been up on blocks in the front yard for a decade. Your potential goldmine has just dropped in value from $200,000 to $125,000, and there’s not much you can do to change the neighborhood.
Due Diligence
Not all problems in the area are so visible. It’s best to drive past on a weekend when neighbors are likely to be out mowing lawns or pulling weeds. The people who reside in a neighborhood are the best people to ask about what’s going on. Keep in mind that you’re also listening for neighborhood rumors or gossip. You’re looking for information about the possibility of the neighborhood elementary school closing, the pending class-action lawsuit against the builder for improper grading which has caused every residence on the block to sink and produce huge interior cracks, or, God forbid, the property you’re considering is classified “blighted” as a result of a homicide that occurred there a few years ago.
You might also discover in your search that some beneficial changes are in the works for the neighborhood, such as the area qualifying for special low-interest funding for the renovations you were planning to perform anyhow. This will provide you with a significant advantage during the bidding process.
Your Diamond in the Rough
It’s human nature to be drawn to beautiful things, but don’t overlook the block’s ugliest house. Do you recall the dream house in that dreadful neighborhood? It’s much easier to renovate one house than it is to renovate an entire neighborhood. Don’t pass on the ugliest house on the block simply because it’s in bad shape.
Consider what it will take to improve its appearance and make it more in keeping with the neighborhood. You might find that all it takes is some new siding, a new garage door, and some fresh paint on the eaves and trim to transform a derelict shack into a lovely bungalow.
Remember: The smallest, ugliest property in a great neighborhood has higher investment potential than the biggest, prettiest home in a decrepit community, according to a solid rule of thumb in residential real estate.
Let me show you
If you are on the hunt for your “Diamond in the Rough,” I can help! And once you know how to find them, then I will help you get them funded. Don’t worry about shopping for private money, let me focus on getting you the money so you can focus on finding MORE great DEALS! Submit your info here to learn more or click here if you already have a deal under contract!
Joshua Reyes, Managing Director
REI FastFunding, LLC
www.REIFastFunds.com