The revelation has come to light in Sport as the creative midfielder continues to win plaudits for his impressive performances in the past few seasons for the Blaugrana.
At the age of 12, Iniesta impressed several clubs at a junior tournament in Brunete, where he appeared for his local side Albacete, and looked destined to move on.
His parents wanted him to join Real Madrid and they took up Los Merengues' offer and saw their son take his first steps on what they thought would a road to the Bernabéu.
Instead, the Spanish giants' home for their young starlets was close a red light district patrolled by local prostitutes and the Iniesta family were not impressed.
Barça youth team coach Enrique Orizaola knew the parents and was able to persuade them that their boy would be better off at Barça, where he would live in La Masia.
It took just one visit to Camp Nou for Iniesta's parents to see what was on offer and to agree to the switch, which they are probably not regretting.
Lucas Brown, Goal.com