Real Estate Course

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  Lesson 1
  Lesson 2
  Lesson 3
  Lesson 4
  Lesson 5
  Lesson 6
  Lesson 7
  Lesson 8
  Lesson 9
  Lesson 10

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Real Estate Course: Lesson One

Step #2 - Drive Your Area

   After you have determined your specific area for investment, the next step is to learn that area. It doesn't matter if you've lived your whole life in the area and consider yourself the ultimate townie. Now you're going to view real estate from a different perspective, as an owner. Therefore, don't presume that just because you may have lived in your investment area for years, you can skip this step. You can't.

   Master's Tip: Drive around with loving eyes. Pause to think and smile about your future. These houses, stores and buildings will form your fortune! The only thing that will stand between you and prosperity is a little bit of time.


   For your drives, you'll want to take along a map, notebook, pencil and a camera. You can develop your photos as prints and paste them into a notebook along with your notes. Or, if you're a little more technically sophisticated, you can scan your photos into a research database. Of course, you can substitute a portable computer or PDA for the notebook if you wish. You get into your car with the pencil, notebook, map and camera and, alone and with the radio off, you start to drive a section of your area. This is not a step to be rushed. Take your time. The more investigating you do the better. The more you'll be learning. At a minimum, you should plan to devote ten or twenty hours to Step #2. You should break this time down into one-hour segments. After each segment, give yourself time to reflect and form opinions.

   As you drive, you start to think like a real estate investor. You survey the landscape. What do you like about certain properties? What do you dislike? Which properties would you be proud to own? Which would cause you to take immediate remedial action? Visually, what do you like or dislike? Can you identify areas where all the homes are single-family residences? Are other areas reserved for apartments, commercial or industrial properties? What is your opinion of each neighborhood within your area? Use your camera to document your likes and dislikes. If you see house colors that you like, take a picture. If you see landscaping or a fence or a driveway that stands out, take a picture. Start your own Real Estate Success Scrapbook. This self-created motivational book should stimulate your thinking.



   When you find memorable properties, positive or negative, take notes and a picture. Which neighborhoods do you prefer? What streets look bad? What building styles do you like?

   Keep looking and learning. Does the upkeep of the lawns and yards give you an indication of the type of neighborhood you are in? Does there seem to be a pride in ownership in the area? Are there abandoned cars or beautiful automobiles on the streets? Is the city or town doing its job to keep the area safe and attractive? Are there parks and other recreational amenities in the area? How do they look? What about the appearance of the schools and government buildings and houses of worship? What is your impression of the people in each neighborhood?


   Add your commentary to your notebook. What do you want to know about your specific investment area? Everything. Start to learn the street, store and school names. Look for vacant buildings and vacant land. Look at For Rent and For Sale signs. Look for new construction and new developments and people fixing up their own homes.

   Do you find any surprises in your area? Are all of the basic commercial services available in your area? Supermarket, pharmacy, banks, real estate offices, insurance offices, restaurants, tailors, doctors, lawyers, accountants, hardware stores. Is there public transportation? Are there major highways? Do most folks seem to work in the community or commute to work outside the area?

   Master's Tip: Allow this awareness of your area to become a habit. What is changing in my area for good or bad? Who is doing what? Observe and learn and profit.

Before You Make An Offer:
A Neighborhood Questionnaire

   When you purchase a home, you are also buying into a neighborhood and community. So, it is important when contemplating the purchase of a specific home that you also evaluate the neighborhood to ensure that it meets the standards and has the amenities that you expect. Here's a quick questionnaire to aid your thinking:

1.Overall Appearance. Are the homes attractive and well kept and are the streets clean and well maintained?
2.Neighboring Homes. Are the neighborhood homes of the same size and in the same price range as the proposed purchase?
3.Neighbors. Does it appear that the age composition of the neighborhood is what you are looking for; i.e., with or without many school-age children?
4.Schools. Are schools and playgrounds nearby, or will transportation be necessary?
5.Public Transportation. What type of public transportation is available and what distance is the transportation from the home?
6.Public Services. What is the status of police and fire protection? Where is the nearest hydrant? Is trash collection available? When? Is the water supply adequate? Have there been any problems with the local drinking water?
7.Medical Facilities. How close is the proposed purchase from the hospital, physician and dentist offices, emergency medical services, etc.?
8.Flooding. Is the area high enough to prevent basement flooding and water backup from the street?
9.Security. Is the neighborhood adequately lit at night?
10.Noise. Are there any unusually annoying noise disturbances from factories, airports, highways, etc.?
11.Odors. Are there any unusually unpleasant odors from factories, sewers, rivers, etc.?
12.Power Supply. Are there any high-tension power lines in the area or other power supplies, which may interfere with, radio, TVs, etc.?
13.Telephone. Will you be located in an area where the majority of your calls will be local and not long-distance?
14.City Streets. Are the streets owned and maintained by the city?
15.Cable TV. Is cable TV service available in the area?

   Every piece of real estate in your specific investment area is a possible future investment opportunity. Take an interest in this area. This is the area that is going to make your investment dreams come true.

   Master's Tip: When I was teaching real estate investment seminars, I would always be asked, "Aren't you worried that other people are going to take your ideas and take all of the best opportunities away from you?" No. First, most people aren't going to do the research. Second, very few of the people who do the research are going to translate their knowledge into action. Third, it doesn't matter. I wish them luck, because there are too many opportunities and possibilities in any investment area for any individual or even any group of individuals.

   Now, when you are doing your twenty minutes of quiet time, think about what you are learning. Start quizzing yourself. Where are the good areas and the bad? What properties do I like and not like? What kind of properties am I going to own? How will I maintain those properties? Think. Take more notes. Refine. Review your notes. Look some more. Who is doing this kind of research? It is a safe bet that no one is. This fact should not stop you, but motivate you.

JUST DO IT!


Continuing Education. Realtor.com Official site of the National Association of Realtors: Comprehensive information on all aspects of home buying including finding, buying, financing and selling.

Go to Lesson 2
Step #3 - Collect Municipal And Online Info

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