Is All Real Estate Created equal?

Is all real estate good?

It’s a question I get asked so often.  Where should I buy, where are the “hotspots”, how will I make the most money.  Well at the risk of being controversial I think this is a bit like lining up 1000 women in front of a 20 year old and expecting him to pick which one will make him the “best” wife.

In many ways all real estate is created equal in the sense that there is opportunity to make money out of almost any property.  Whether you want to is another thing and whether you have the skills to is another again.

But the possibilities are everywhere.  Whenever I get the “all real estate question I always answer firstly by saying there is no such thing as good or bad real estate.  Secret No 1 is to be an area expert.

I have friends who invest and trade in streets I wouldn’t visit wihtout a body guard, yet they flourish there because they know what they are doing.  So to them all real estate is not created equal, the slum stock is better.

The second thing I tell people is to get an education.

It doesn’t have to be with me but make sure you know what you are doing and why you are doing it.  I honestly meet people most weeks who get all excited about property and happily go out and spend 300, 400 or $500,000 on an investment property and they can’t give me one reason why they bought it, whether it was a good deal and if it fits in their non existent investing plans.  Don’t join them!!

So don’t ask me “is all real estate created equal?”, start asking yourself “Do I know what I am doing and why I am doing it?”

And if not, DO SOMETHING ABOUT IT!!

Stay Inspired and Stay Safe ~ Dean Letfus

The Ethical Investing Strategist.

PS: And if you want to do something about your education in November please join me for my only 2009 event “2010, the year of the investor”.  I’ll teach you what to do in the next 12 months to really set yourself up for life and get you up to speed on all the law and tax changes you must know before you sign another S&P.  More info at http://www.retirefromproperty.com