Characteristics of a Good Target Area -

Details for Characteristics of a Good Target Area

ID:	4705
Author:	jeffadams
Title:	Characteristics of a Good Target Area
Article:	The criteria and characteristics of what constitutes a good target area differs from investor to investor. It depends on what each one is looking for and is in the market for. If you are interested in the business of wholesaling, there are several key components to watch for. For example, aging neighborhoods are good to look into because they offer something that other areas do not. They have potential to undergo renovation and are probably due for an overhaul. Areas that seem to offer a good rental market are always valuable. Investors that are looking for a good return on their investment will usually jump on the chance to invest in a property that has the potential of having a strong rental component. Then there are areas where there has not been a mass migration away from for whatever reason. Neighborhoods that do not attract people are probably not going to attract investors as well. Neighborhoods that are conforming and willing to accept change and improvement are also good to invest in. If there are new schools, shopping centers, and homes being built in a particular area, chances are home values will improve as well. There are also areas that display a sense of pride on behalf of the homeowners are ideal to invest in. There is a general sense of community, cleanliness, and comfort factor that adds to the value of the property. Avoiding war zones is a no-brainer. Areas that are run down, display lots of trash, sings of drug dealing and gang activity are mostly unsafe and not good areas to invest in. Although there is money to be made in these types of neighborhoods, a good rule of thumb is that it is better to be safe than sorry. Zones A-H A - War Zone typically has trash, gangs, drug deals, and is unsafe B - area near a war zone where there are mostly renters C - area consists of lower income home buyers with many renters D - pretty decent neighborhood with some renters E - good neighborhood with few renters F - great neighborhood with very few renters G - new homes that are nearly all owned H - luxury homes Lower middle class, decent neighborhoods with some renters is the ideal niche for this type of real estate. There are many first time home buyers. Generally, as far as wholesaling, zones C-F are more prone to offer the best investment value. Surely there is money to be made in any niche, but these areas offer the most opportunity to the wholesaling market. Investors also find these areas attractive as they offer a greater potential rental opportunities, community growth, and expansions possibilities. Buying real estate in a lower end neighborhood that has an adequate amount of renters and also has the potential to improve its overall community is an area that most investors find very interesting because it all translates to an overall greater return on their initial investment. About the author of this article: jeff adams is a full time investor who has done over 350 deals and is a leading expert in the buying and selling of real estate. for more information visit http://www.freeforeclosurecourse.com or sign up for a free seven day e-course at http://www.realestatewebprofits.com.
Category:	Business: Business-Opportunities
Date:	October 09, 2009 12:02:58 PM

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