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earn money with real estate options

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Eight Factors to Consider When

Performing Due Diligence on Areas to Invest In

Finally, to avoid buying an option on a property in a bad location, you need to

take the time to thoroughly check out the area surrounding the property under

consideration. This means understanding the political, social, and economic factors

that influence property values within the area. You must consider the following

eight factors when performing due diligence to select the most stable and

potentially profitable areas to invest in:

1. Age and condition of properties within the area: Avoid areas where virtually

every property is old and in a run-down, neglected physical condition. This is

a telltale sign that there are hard to overcome problems affecting the area, including

crime, drainage, local perception, and lack of municipal services.

2. Storm water drainage within the area: Avoid areas with inadequate storm

water drainage systems that are susceptible to chronic f looding whenever a

hard rain occurs.

3. Perception of the area within the community: Avoid areas that are perceived

within the overall community as being the local equivalent to the South

Bronx in New York City. Areas having this type of an overly negative perception

are next to impossible for private individuals to overcome and are

best left to the swell folks at HUD to waste our tax dollars on!

4. Enforcement of building and zoning codes within the area: Avoid areas where

building, health, safety, and fire codes and zoning regulations are not being

enforced. A lack of code and zoning enforcement is a telltale sign that an

area is in rapid decline.

5. Crime rate within the area: Avoid areas with a high crime rate or the reputation

for being crime ridden. When an area has a high crime rate, established

businesses try to move out while new businesses are scared away from locating

in the area.

6. Presence of public nuisances within the area: Avoid areas that are near

stinky-smelling sewer treatment plants, meat-packing plants, or paper mills

unless the properties within the area have potential for use as unattended

warehouses or bulk storage facilities.

7. Availability of municipal services within the area: Avoid areas where hookups

to municipal water and sewer lines are not readily available and relatively

expensive.

8. Traffic patterns within the area: Avoid areas that do not have relatively easy

access to main thoroughfares.


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