Contractor · Chicago, IL · Member since 2008 · 56 posts · 8 votes
How do I identify War-zones and pick solid dependable target markets for investing?
I live on the southside of Chicago, so if you know anything about Chicago you know there is atleast 200 unique neighborhoods each having its own set of demographics.
This requires quite an investment in learning the town and Im looking for any tips/suggestions/tools for helping me identify between warzone areas, and solid entry level, middle level, and high range zones. Thank you so much in advance!!!
Carlsbad, CA · Member since 2010 · 1k+ posts · 1k+ votes
15y
Hi William,
Welcome to BP!
I am from Chicago too. I live in South Loop. What's your investment strategy? Are you looking for buy and hold properties or flip? If you can tell me a little more about your investment strategy, I may be able to help you with something.
Contractor · Chicago, IL · Member since 2008 · 56 posts · 8 votes
15y
Hello Max!
Thank you for the response, I've been lurking these forums for so long that I forgot that I've never posted before :)
My personal investment strategy for this year is to focus on 1)subject 2 deals using assignments primarily as my exit strategy, and 2)wholesale contract assignments in which I will turn the city upside down searching for and creating excellent value deals.
I have a couple of family members who are looking to become cash buyers, and they want to buy and hold, and rehab and flip to end users. So, I definitely want to get them into 1st time Home-buyer Entry Level Markets that are not War-Zones.
So I've started to comb Wikipedia, http://www.altosresearch.com/ (paid)
http://www.neighborhoodscout.com (paid)
http://www.bestplaces.net/
In search of data, and I'm still learning how to decipher through the data to make it applicable to my investment strategy
Once I get the first of my 2 strategies built solid enough, I want to start participating in note creation/selling.
I hope thats enough information, How about yourself?
Carlsbad, CA · Member since 2010 · 1k+ posts · 1k+ votes
15y
William, are you part of some REIA? If not, I will very highly recommend that to supplement what you learn at BP.
Even though I am from Chicago, I invest mainly in NW Indiana, because of better returns and more landlord friendly government. Cook County is one of the worst places in the area to be a landlord. I hear horror stories all the time on how it can take 6 months for an eviction.
Here's another good website to find more information about a neighborhood.
Here you can ask questions on the forum about a particular area. Another thing I do before I consider any property is I call the local police department and ask to speak with someone who can tell me about the local area. I simply ask them "If you had money to invest, would you invest on this block?"
I have walked away from couple of really good deals because of what a police officer told me.
Feel free to ask any other questions that you may have.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
15y
The best way is to ask several local Realtors about demographics and what is unique with different areas.
There are some subtle idicators of war zone properties.
1. People walking down a street wearing bandanas and the guys having their jeans lower than their underwear. Usually wearing gaudy jewelry. When the colors of the bandanas change, you have entered another neighborhood, homey!
2. Houses with boarded up windows and doors, generally that have unique paint jobs that don't really blend with the original house color. There maybe signs posted on the doors with yellow or red sheets that appear to have some official posting, like from building regulations or the health department.
3. Then there are properties that have bullet holes in the walls and doors with broker windows. If there are any red stains on the sidewalks, that is not paint my friend.
There are other indicators I'm sure, not living in a big city I'm not that familiar with such areas, but generally if you ask yourself a question before you invest it might be helpful in your marketing plans: Would I have lived there?
The south side of Chicago is a good area to invest in. The quieter block are better you can usually tell from riding around which blocks are alot quieter. Buying a house near an elderly person is always good. Because most times they are home alot and will tell you if they see anything happening around your property. This time of year it's hard to tell who lives on the block because most people aren't out but in the spring and summer that's when you can tell if there is alot of activity on the block or not.
Real Estate Investor · Long Beach, CA · Member since 2011 · 74 posts · 17 votes
15y
Visit the local police department. They love to tell you about the neighborhood! Cruise the neighborhood after 6:00 pm: people are home from work. look for cars and activity around dusk (if you can safely do this on your own).
Flipper/Rehabber · Garner, NC · Member since 2011 · 42 posts · 15 votes
15y
I like to drive around the areas I want to buy in. I agree with what was said above about only buying and holding in counties with a landlord friendly government. If it takes 6months to make an eviction chances are the property is going to lose money. If you're wholesaling property it all depends on what your buyers want to own. I'm working with buyers now who want properties in the war zone for under $20,000. I've owned property like this in the past and I wouldn't you to buy in the warzone, but if you can wholesale properties in that neighborhood then go for it.