Every day I read about real estate 'bargains' across the country. Las Vegas has brand new properties listed at 50% or more off highs. Some homes in Detroit are selling for a dollar.
It is tempting, very, very tempting.
But my mamma has a saying
'Elephants selling 2 for a dollar is only a bargain if you need 2 elephants and you have a dollar.'
How could you go wrong buying a home for a dollar? It isn't really selling for a dollar. It is selling for a dollar plus back taxes. The home is also little more than a plot of land. Thieves have made off with everything including the insulation between the walls. Buyers will likely have to demolish and start from scratch. Then there is the headache of needing security on the build site to ensure the new materials don't get teefed.
Then you have to think to yourself… if homes around it are selling for a dollar and the street is crime-ful, who is going to buy the new home and what will they pay for it?
I'm not saying these houses aren't great deals. They can be. Simply don't jump in without doing your research and having an action plan.
Actually, that's a good investment policy ALWAYS.
Don't let the bargains make you sloppy. Tight investing always outperforms sloppy investing.