Watch – why investors should always buy bad properties

Sophisticated real estate investors know to watch for clues that a neighborhood is moving from one economic class to the next. Old run down neighborhoods that are upgrading and improving turn into good investment opportunities.

Never buy the best property in the neighborhood. Buy the worst property and bring it up to the neighborhood benchmark and you will get the biggest bang for your buck.

Never be the first to invest in a renewal area as sometimes the renewal does not fully take hold.

Reduce your risk...wait for the renewal to take hold then invest.

Don't let your personal beliefs about a neighborhood obscure the fundamentals of your investment system.

Decisions based on emotion versus fact will lead to missing big opportunities.