You might have heard about “war zones” in some real estate investing seminar. Just what are these areas and why are they called such? Should you invest in them?

Before we get on to real estate investing details, let’s define what a war zones is. In layman’s terms, it is simply an area where illicit activities are done in broad daylight. And we can safely assume illegal drug trade, prostitution, and even vandalism as illicit activities. Now, the reason why the phrase “in broad daylight” is there is because it stresses the fact that if illegal things happen during day, what else could happen during night. In short, these are zones where security is an issue. That is why they are aptly called war zones.

Now, if you ask whether you should invest in these areas, the general rule is you should not. If you are a real estate investor who is into wholesaling houses, rehabbing houses, short sales, and other short-term investing methods, these are not areas you would not want to farm. Why? Because even if you are able to buy houses low, it will be hard for you to sell them. Properties in these locations are not marketable.

There is, however, an exemption to this rule. That is, if the war zone is actually seeing some positive development. If the area’s crime and unemployment rate is going down, that’s a positive sign. If some food chains or convenience stores are opening up, that’s also a good sign.

Another exemption is if you are a veteran in real estate investing. If you really know what you are doing, go invest in war zones. Otherwise, stay away from them.

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