You don’t need to spend thousands of dollars on real estate seminars to become expert in the foreclosure investing business. Many who have made millions in this line of business are completely self taught. You also don’t need expensive gadgets and computer programs. All you need to get started is a pen, a pad with paper, a map of local neighborhoods and on open mind.
You should start by looking at neighborhoods in streets close to you. A good radius is your commute to and from work. Perhaps leave early one day and take 30 minutes looking at one particular street. Take note of the kinds of things that you see. Is there lots of renting? What kind of conditions are the homes in? Do people park their cars on the road? Ect. Once you have a feel for the neighborhood, practice finding the home that doesn’t quite fit. There may be a home that is UN kept, or abandoned. There may be a house that just looks more run down than the others. Keep doing this on other streets in other neighborhoods.
As you look at other neighborhoods, try to get a feel for how each neighborhood is maintained. You’ll find that there may be a great deal of variance even between neighborhoods that are close together. As you do this with several neighborhoods, you will start to develop skills essential for investing. Investors must know how neighborhoods compare with each other. By driving into a new neighborhood and being able to see how the house quality compares with those of nearby neighborhoods is something that good property investors can do with 100 percent accuracy.
Generally, properties get more expensive if they are close to good amenities. Properties that are close to schools, parks, shopping and leisure facilities will likely be maintained and sell for top dollar. Properties start to drop in value when they get closer to highways and large commercial and industrial areas. Try to locate some of these areas on your neighborhood map, then drive through slowly and see if the theory holds true. Sometimes the homes are only slightly less maintained but this can mean a price difference of thousands.
It costs very little money to train your property developer’s eye. By simply purchasing a map and scouting out local neighborhoods, you can develop several of the essential skills needed for good foreclosure investing.