Best Real Estate Deal of the Year

Let’s look at the best real estate deals. What is the “deal” of the year? Best Real Estate Deal of the YearA few months back I was traveling back to my home town where I grew up. I saw this sign promoting city lots for $1.00 and was compelled to take a picture of it. I shared this photo with many people and the responses were extremely interesting, so much so that I felt compelled to share them with you.

A Great Real Estate Investor Case Study:

These comments proved to be a great case study of separating the home buyer from the investor, the greedy investors or maybe the uneducated investor from the seasoned investors.

Seriously what was your first thought when you saw this advertisement selling city lots for a one dollar. Did you believe this was the best deal of the year or were you instantly sucked in by the low price?

Here are the many responses I heard.

  • Wow, incredible how many are available?
  • Is there a limit as to how many you can buy?
  • I want 20 or I want 50!

While others said:

  • What’s the catch?
  • What is wrong with the land, is it quicksand?
  • Why are they selling it so cheap?

And others asked:

  • What is the size of the town?
  • Where is this land located?
  • Why are they selling it so cheap?
  • What does it cost to build on this land?
  • What is the rental market like?
  • What is the supply and demand for housing here?

In real estate there are 3 types of people (such as illustrated above)

  1. Greedy or uneducated investors who want to jump on anything that sounds appealing before doing any type of diligence.
  2. “Nay Sayers” who find reasons not to buy or invest in anything.
  3. Savvy investors who will instantly dig deeper to learn more so as to capitalize on true opportunities as they appear (cheaper doesn’t mean better).

All too often a low priced property can be such a strong lure driven by emotion that you let your logic go right out the door. Often buyers buy strictly on price. Buyers trade safety and sustainable returns on things like cash flow and capital growth for the low priced product that may not be a good investment at all. It is said “when emotion goes head to head with logic, emotion will always win.” When investing you want to make logical purchases and try to leave emotion out of it.

I know you are wondering: what is the story behind the ($1 lots)

The local government in this town wanted to attract a larger population. They made many lots available to purchase, their objective was to sell lots for a $1 for those interested in building a house on it within a calendar year. To insure you did this, they charged a $1,000.00 deposit. After the home was built within a year, they would credit you back $999.00.

So is this a great deal? Depends...

Find the top US real estate investment marketsTo a home buyer in the area or one who wanted to relocate to the area, it could be a great deal. To the investor there is much diligence that needs to be done to learn all the aspects of the location, employment, growth potential, building costs, rental rates, demand for housing, and growth potential. Not to mention building time, holding cost, property taxes, insurance costs, etc.

So we have separated the greedy from the savvy, the home buyer from the investor. Where do you see yourself? Are you a logical investor or an emotional investor?

You can make an appointment for a phone consultation to learn about the best deals in the country by calling +1 941-718-7761.