If You Feel Comfortable Walking Around, You May Be Too Late
Small investors are not usually the ones who make the change happen in a neighborhood but they definitely make their contribution to change. There are endless strategies and approaches and this is in no way the best, the only or the least risky approach. But it is a good one that can work well if done right.
This video was filmed in June 2023 when I was at one of my properties to inspect after a deep clean. The vibe on the block was one of excitement. Neighbors were gathered to watch the cement truck pour two foundations for new construction of two single family homes. It was exciting to see what we expected to happen back when we bought the property, actually happen. Admittedly, we thought it was going to happen sooner when we purchased it in 2018, but we did not account for a pandemic so there is that!
Buying distressed properties is not the only way to invest. It is how many people start and continue. You can buy under market price. But you need to understand what you are doing and what the real potential is. You need to have the ability to know if you are truly buying UNDER the market value and not fall into the trap of underestimating how much work needs to be done to the property, for example.
If you walk around the neighborhood where this video is made, you would have to look hard to see the signs of change, many of which are not visible. By the time you SEE the change, it might be too late. By the time there is a Whole Foods or Starbucks – those distressed properties that you may see and think you could grab on the cheap are going to be priced accordingly. The market is very smart these days. So you need to have the ability to make smart decisions based on a lot of data, facts and trends. The vibe on our block is different from the vibe of some of the neighboring blocks. That is not something you can see on a spreadsheet or in City records.