Are you interested in investing in emerging markets? Well, you don’t need to look abroad, there may be plenty of opportunities nearby.
Downtown homeowners can create wealth by organizing neighborhoods. They create value by helping people reconnect with their communities, and their work results in more enjoyable communities and higher property values.
Before you are in a position to benefit from this real estate investment strategy, you will need to purchase a city center property in the right location.
Here are 5 keys to ensure your success:
1. Find real estate investments near the edge of the city center. Great opportunities exist along the fringes of the “good” and “bad” parts of the city. The objective of a real estate investment in the city center is to benefit from the improvement of the “bad” edge of the city. Shop near the fringes and work to connect your property to the “good” part of town.
2. Work with a local neighborhood watch group. Future earnings are directly tied to the effectiveness of grassroots advocacy groups. An emerging market owner needs these groups to provide passion, credibility, emotional support, media connections, political clout, and more. They provide the leverage you’ll need to solve the problems that hurt area replay. Work to strengthen these groups, but don’t create one from scratch. Starting from scratch requires a tremendous amount of credibility that you may not have with your neighbors.
3. Buy real estate investments near a transit hub. One strategy is to create housing that will attract eco-boomers. This group is interested in sustainability and public transportation options. Additionally, as the cost of oil rises, so will the demand from transit-supported communities. Shop near a transit hub and capture emerging demand for this feature.
4. Buy real estate investments big enough to make your efforts worthwhile. Use best practices, honed from over 40 years of neighborhood watch case studies and other community organizing tactics, to transform the biggest blighted property you can afford. Find the big problem and make a big profit when it’s restored.
5. Buy real estate investments within the sphere of influence of redevelopment projects. Your local redevelopment agency will be able to tell you what private or public efforts are underway. You’ll want to consider properties near these sites to capture the excitement and economic energy associated with them. The promise of a better tomorrow is a very effective negotiating point to share when trying to lease your property.
Helping a community get back on its feet is rewarding, and collecting the capital to restore the area’s reputation is a well-deserved reward. Is This Wealth Building Strategy For You?
I love the business adage that instructs investors to study the “apple tree” and place their baskets where the “apples” will fall. It suggests that careful strategic planning pays off, and I’ve personally found this to be the case. Use these tips to find ideal downtown real estate investments, and with a little community development work, you’ll soon have a basket full of capital.