The benefits of real estate for many communities that have fallen into leaner times are varied. When the economy dips and houses become run down or abandoned and people need to sell, many simply walk away leaving the property to die its own death. When an area has a lot of homes like that with tenants and owners who are barely getting by, it brings down the property value of neighboring houses and areas. Soon, businesses leave, people move away, and buildings and land are no longer being cared for. The area is not attractive to anyone any more.
Real estate investing has the ability to reverse those things and rebuild communities into something far more beautiful, attractive, and desirable. This ability makes real estate not only a good business to be in to make money but to do good things at the same time.
Rebuilding a community starts with just one house. When you buy a rundown property and rehab it you are turning it into a beautiful home that some buyer will want to live in or rent out. The house now has a greater worth or value which increases the value of the properties in the neighborhood, but only slightly. Another house is bought, rehabbed, and sold at a slightly higher price. Now those two gorgeous homes increase the value of the remaining homes slightly.
With each home that is bought, rehabbed, and sold or rented, comes an increase in the value of land and properties in the area. Pretty soon this snowball effect runs out of control and the community starts to rebound Homeowners and renters begin to occupy homes, businesses start to move back in, and the community starts to spring to life. City, town, or county agencies begin to clean up the garbage and beautify the area, replant flowers and trees in the parks, and develop community activities to service the incoming residents.
Without such real estate activity by investors like you, many communities would flounder further down the drain and turn into ghost towns. But brave investors who buy low, sell high, or help buyers and sellers find each other in such communities, are truly the ones who deserve a big thank you for putting their money to work to make the lives of people who live and work in these types of communities much better.