Speculation Has to Take a New Form

Speculation has to take a new form

This is part of a series that is being posted to my website because blogs read backwards and this item needs to read forward. You may read everything published to-date at http://www.segrestrealty.com Hit the “Investment Guidelines” link.

There used to be a saying among real estate investors, “time will heal your mistakes”. No more. Speculators need to have a good knowledge of the path of progress. This is where profits will come from in the future. A good source of this knowledge is the comprehensive plans that most cities have. These plans normally have a year number such as 2010 or something like that.

It is a good idea to see how past plans were implemented. Some municipalities take these plans seriously and some don’t. The next place to look is the department of transportation. Progress follows roads. Once again it is necessary to see how high the priority is for the roads. The hardest thing about this strategy is timing. Usually the property owners know about the coming roads and think the property will be worth more than the reality of the project will bear.

Look for improving neighborhoods. Gentrification is a great source of profits in property. There are always property owners in blighted neighborhoods who are ready to sell and escape. These projects usually require renovation as well as speculation; but the investor makes an entrepreneurial profit as well. Contractors often use these projects to keep crews busy during slow times.

David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/