Buying Investment Property Online Watch Out!

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Last year I got a call from a lady who wanted some help. She was from California and had been visiting one of the Internet online real estate auction sites. A word of caution here, although most of theses sites are legitimate, if you plan on actually businesses on these properties, which are generally in another state, do some research before you buy. This comfortable lady had purchased a large empty lot, about an acre as i recall. She said that the prospectus described the property as being located next to the "Mall" in Ladonia, Tx. She had bid a few thousand dollars for the property and had won her bid. She asked if i could check it out and possibly list the property locally for sale. She was sure she would be in for huge profits, after all it was an acre lot next to the Shopping mall! From the perspective of someone living in The southern area of California a few thousand dollars was dirt cheap.

Ladonia marvelous small Tx town about 80 miles northeast of Dallas. According to Google, Ladonia's population in 2000 was 677, and it's really probably not more than 1000 today Pinoy Teleserye. I told the woman that we would be up that way in a few days showing some hacienda land to an area cattleman and I would try to look at the property while I was there. Several days later I was ready to begin in that direction, so i pulled the basic information on the property off the Ladonia tax roll, which showed the tax value, I think it was probably somewhere near what she had paid for the property, but don't hold me to it, it has been a year ago. After driving around Ladonia, I finally found the lot. The property was an overgrown lot on the north side of town a few blocks from the local bait (fish) shop and convenience store, which is the nearest thing to a Ladonia Shopping mall. There was an old derelict mobile home on it, which I believe made it worth more in the tax evaluation because it was considered improved property. Comparable property for sale had not sold, even for less than 1000 (One Thousand) dollars. However, now that the property has a new owner, the city's you are not selected fire department will have anyone to fine if the brush and weeds there are not maintained all through the year. Also the old revealed trailer home is an open invitation to druggies.

(Yes, we have them in Tx, too! ) After i returned to the office I phoned the woman with the unexpected news. This lady had be a victim and over paid for a real estate property in another state, she now owns it and accounts for it. She had a frame of property value reference, based on her familiarity with her own market location, where real estate values had been rising for years. I believe, asap, that a lot next to the Shopping mall in most towns in The southern area of California was and would be worth a lot of money, but not in Ladonia, Tx (even if there was a Mall). It's a lovely little Tx town, but it's a far different location, and a many different market. This story brings to mind all those old saying's like "Don't buy a pig in a poke" or "You can't make a man made fibre purse out of a sow's ear. inch Here is my own -- "Don't buy Real estate without carefully checking it out first. inch There are many real estate professionals that will be glad to help you research for free. Nearly all are happy to help you research properties because they're assuming, if you happen to want to purchase or sell real estate, you will remember them as someone who helped you and will contact them again, and I hope you will. "One good turn deserves another. inch