For most of you this may seem obvious, but for some of you it may be a wake up call. Before you invest in a specific area, it is not enough to just do your research on the internet and/or reading books. You need to walk the streets in all hours of the day throughout the week. It is so important to do this because you will get to see every aspect of the area and the people that hang out there. This will provide you with a different and REAL perspective on the area.

I went to Buffalo the other day and was in the heart of downtown during rush hour. I was really surprised at what I saw and I would not have been able to experience this by reading some book or researching Buffalo on the internet.

What are some of the dumbs things you can do right now?

1. Buying investment properties that DO NOT cash flow positively. People buy with the hope that their house value will increase forever and unfortunately that is not the case.
2. Buying Pre-Construction Condos hoping that when it gets built that they can flip it and make a profit. Again that is very speculative and prices do not always go up. Are you really getting such a “great” deal? Are those “pre-construction” values really below market value? Are you playing the guessing game for what might happen in 1-2 years from now?
3. Buying in the United States because it is so CHEAP! People I know bought houses in Detroit for $5000. Is this a good idea? What about Vegas? No matter what you do always do your due diligence first…

There is a big difference between investing and speculating. It’s your choice as to how much risk you want to get involved it.