Real estate anchors may be positive like water or negative like a busy street or various environmental problems. The first rule of real estate investing is to stick close to the positive anchors, so you’re not blown away in an economic storm.

Real estate trainer Todd Dotson defines an anchor as a feature or structure that solidifies the economy of any area. Think about some of the questions you asked the last time you bought a house? How far from the mall? How far from the school? People need certain services and don’t want to drive all over the place to get them.

But don’t overlook the negative anchors or you could get burned. The goal is to locate close to the positive anchors, but keep a healthy distance from the negative anchors.

There are a variety of negative anchors that can get you into trouble. They can be hiding in ambush waiting to attack when you let your guard down.

Traffic & Busy Streets

The most obvious negative anchor is a busy street. You want to be at least one or two houses away. Home buyers are fickle. They can tour your home and fall in love with everything about it, but when they walk outside and see the busy street they’re outa’ there. The scream of sirens, screech of brakes, and whine of accelerating engines can squash a deal flatter than a pancake.

Yours truly learned this the hard way when he was just getting his feet wet in real estate investment. The house I bought flanked a busy street, but my realtor said I’d be all right if I just put up an 8 foot fence and created a little courtyard on the traffic side. That sounded really good until I applied for a permit and the city turned me down. I could build the 8 foot fence but it had to be set back 10 feet from the sidewalk, which effectively cut my courtyard in half. There are several lessons in that little story – just a word to the wise.

It’s amazing how people can adjust to a lot when it comes to noise tolerance. For instance, people living near a railroad track get used to the clamor of the train rumbling by at a certain time every night. If the train doesn’t make its usual appearance they wake up. But a prospective buyer will not look at it that way.

Environmental Problems

The government is notorious for its rigor when it comes to environmental problems. To ensure that you are operating under their radar watch out for things like this:

1) Flood Plain. This can be a problem, even if you’re located quite a ways back from the river. You can learn about the risk relative to any property by going to FloodSmart.gov or call 1-877-336-2627

2) Gas stations, dry cleaners, or hazardous waste sites. Chemicals from these facilities can leach out hundreds of feet from the source in a cone-shaped plume or follow an underground aquifer. The government holds current owners of infected properties responsible. Check www.epa.gov/epahome/commsearch.atm.

3) Landfill, military base, mine or quarry. The military in particular tends to take the attitude of a bull in a China shop when it comes to environmental problems. Who’s to stop them? Your property could be in “the line of fire.” Check www.topozone.com.

4) Property previously zoned industrial or commercial. Check Sanborn Maps at the county assessor office to make sure the subject property has always been zoned residential or formerly agricultural.

5) Crack House. The fumes get into everything and the only way to get rid of them is strip out the guts of the house, down to the framing. As an investor you don’t want to get into that so if a place is suspect ask the local sheriff and the neighbors.

Oliver Woods is a real estate counselor who can aid you in getting the best price possible in the present market if you have been working to sell your home — sellers may apply at his website. He also specializes in locating the best deals for residential and commercial investors who are looking for bargains in discounted properties.