Today s real estate market is ideal for the long-term real estate investor. After all, in just about any market in any geographic location, you can purchase valuable real estate for mere pennies on the dollar. In fact, you can purchase nearly any type of real estate, and you can often use a variety of creative transaction methods to purchase those properties with little or no down payment, and regardless of your personal or business credit.

In short, real estate investors everywhere are snapping up the deals – and we re helping the economy recover in the process. However, with the plethora of properties available, it can be easy to just assume that a long-term investment cannot fail. In fact, a trend that I am noticing with many of my clients is that they spot a good” deal – a property available for pennies on the dollar – and leap as if it will be snatched out of their reach. In many cases, the deal is good, but sometimes they get so excited that they fail to stop and check for red lights on long-term investment properties.

They just buy with abandon, and I have to make sure that they slow down long enough to make the most educated decision possible. In this exciting real estate market, there is no reason to get carried away. The odds are pretty slim that someone else is going to snatch the property out from under your nose. We re just still operating on the old mindset – from the previous decade when financing was easy to get, and credit was easily available. In today s market, you have no excuse for not looking out for these long-term real estate investing red lights.

They could save you time, trouble and serious money in the long run.
• Is the property remotely viable now?
Depending on your strategy, this may not matter. However, many investors rely on their ability to at least ameliorate the cost of a property s maintenance by getting some use out of it in the short term. If you are this type of investor, then you need to be sure that you can rent out the property or otherwise utilize it. Otherwise, you may find yourself selling for pennies on the dollar in short order.

• What is the economy in the area?
It is a sad truth that people are literally fleeing several geographic areas in the United States right now. Some Midwestern locales have had their population halved or more. Buying in these areas can be tempting because the properties are available for literally close to nothing, but you need to have a long-term plan for maintaining these properties until the economy in those areas recovers – if it does. A ten-year plan in a ghost town is not nearly long enough to give you good odds on making a profit on your investment.

• Look for regulations that will prevent one or more of your exit strategies
Some areas – particularly desirable ones – have zoning laws or other ordinances governing how and if you rent, what types of businesses you bring in or the ways in which you maintain a building or property. You need to make sure that these regulations do not impede your ability to make your property attractive for sale now or in the future.

• High crime rates are serious
Even if you think one of the reasons that you are getting such a good deal is because crime is high in an area, stop and consider if you are willing to risk your property on a daily basis until (or if) the problem is resolved. Empty properties are magnets for petty vandals, and you could end up spending thousands on repairs.

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