Good Or Bad Area Of Town??

SSJustin profile photo

I've just started utilizing the county clerk's website to obtain lis pendens lists. I've been scouring the lists, and have come to find that there are really only properties in bad parts of town that have lis pendens. Is this common for the rest of you all on here?

My question is, should I go ahead and try to start doing deals in these areas, or should I be patient and wait for one to pop up in a better part of town? (i.e. higher FMV area?)

Thanks for your input!

Comments(7)

  • SSJustin2nd April, 2004

    Anyone have an opinion on this matter?

  • destrie2nd April, 2004

    I'm new at this, but this is what I think. What are you going to do with the property? I think either way, it's going to depend on what type of people you want to deal with. The not so good part of town you will be dealing with not so good people. But I always learn through trial and error. Get one property and see how it goes. You are your best judge.

  • mattfish112nd April, 2004

    There is a lot of money to be made in the "tougher" areas of town. Although nobody really wants to be walking around, talking to sellers, and doing deals in the middle of a war zone.
    If you don't feel safe in a neighborhood, don't do business in that neighborhood. There are deals everywhere - not only the bad parts of town.

    Remember, the worst house on the best block is much better than the best house on the worst block!

    Good Luck to you,
    Matty Kling

  • SSJustin2nd April, 2004

    My goal is to flip properties and do options.

    My concern is my ability to get the homeowner to understand what I am trying to do.

    I dont want bubba to get out the shotgun cuz he thinks I am trying to take his house or something. ( I live in KY)

    But seriously, if I work in a harder part of town (ie lower values) where am I going to find profit? If the house is only worth 80k to begin with, where am I going to make my money? Or is there just as much room on this sort of property to make money as with a house worth 150k?

  • RRMerz2nd April, 2004

    Don't focus so much on the market value. A houe with a 600K FMV, might owe 590. Where is your profit then?

    On the contrary, an 80K house might only owe 20... now you've got some equity to work with.

  • Vern2nd April, 2004

    Hello SSJustin,
    I look for properties on the edge of revitalization zones. That way I can that progress in moving in that direction. Lots of money to be had once you fix-up the homes on the edge.

  • SSJustin2nd April, 2004

    Good points guys. Thank you for the input!

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