How To Make Your Real Estate Become The Next Up And Coming Neighborhood
Everyone talks about buying real estate and how its a "passive income stream". I cannot tell you how angry I get when I hear this because unless your an institution real estate is never passive its work. Honestly there are even many institutions out there that can prove me wrong on how hard they work to turn around a property and an area. Real estate is one of the oldest businesses in human history and the model is pretty simple:
- Be in the next area people want to live
- Work to make your properties be the place people want to live
It is that simple. People really go wrong with real estate when they simply don't care or are "hands off". It reflects in the property itself just like your body reflects when you don't take care of it. Real estate is a physical thing so you must take care of it and improve it for people to take notice.
So this all goes hand in hand with positioning yourself to be in the next growth area. You want to be in an area that is not just experiencing change but somewhere you can bring change. Real estate structures always remain but overtime there use changes or what people WANT to use them for change. So finding areas that are misused and in need of some repair are excellent to start. An example of this is take a look at SoHo in New York City, an old manufacturing hub. At one point inn time people looked at those buildings and said they are dirty old factories. Then people started to see them as a great place to live and do their art work. Now no one would ever call SoHo or their buildings dirty, change in use happened here.
You also want to be the change in the area so people want to be there. This is the work part and it self generates your success when you put the work in. When people start to see effort put in they start to care. You then begin to attract others to the neighborhood and start to experience the change first hand. When investing in the next growth area or hot area you always have to be the catalyst for change yourself.
A "hands off" environment in real estate investing is a quick slope to a property that doesn't generate cash and lack of work that doesn't attract growth. So investing in the next up and coming area really comes down to you. YOU have to be the one to put the work in your property. If you don't then you are waiting for someone else to do so and that will be decades. So be the change you want to see in the world and make it happen and grow your wealth.