Starting your own company in the “hood” presents great deal of risks that no one is willing to make. You might know that gangs and violence are pretty common in these types of places, but do you also know that places like the “hood” can be very legitimately profitable? This brings us to the story of my humble business…
I began my business by developing broken and abandoned properties in the “hood” that brought twenty good people and thousands of clients. In doing so, the block where my company stood was straightened out in a span of five years; and with the ongoing gentrification, the value of properties in the area continue to rise. It might seem ridiculous from the get-go, but with these developments, cases of gang-related violence were pushed farther down the block. And believe me, I know gang activities in the “hood” won’t go away that easy. Most that live here stay because of one good reason… they know that their properties will soon increase in value exponentially.
Now, how did I find the right property to start my business? Easy! I looked for places where gentrification was underway. I drove around town looking at a bunch of warehouses and had a dependable realtor to help find what fits my needs. What everyone thought was a bad buy because it was an unpleasant neighborhood; I looked at as a golden opportunity. It also helps to know the difference between property and neighborhood values. Preparations weren’t easy though; lots of contingencies were needed to close the deal. The paperwork also wasn’t stress-free; there were a lot of clauses involved in the fine prints that you would need a lawyer to make sure that everything is dead-on.
Overall, my strategy was simple… to own properties even if it meant buying it from a bad neighborhood. Educating myself on how sellers conduct their businesses is also an important part of my strategy. This approach helps me accomplish what I have set out to do in the long run. To let you in on a trade secret – brokers try not to let you meet with the sellers so they don’t get cut out.
To sum it up, these are my tips to you:
• Look for places being developed. Don’t focus on what is, but on what could be.
• Invest in a dependable realtor. A trustworthy realtor is your friend.
• Don’t be blinded by the neighborhood. Diamonds can be shaped.
• Keep yourself updated in real estate information. Knowledge is your best weapon.
• Make time to get to know the sellers. “The first rule of war and business is to know your enemy.”
Lastly, don’t be afraid to take risks. Who knows? You might find a diamond in the dirt.
Not convinced? Watch this video for a more detailed explanation on how to become successful in the real estate business.