Posted by CarolZ on July 08, 2005 at 01:56:01:
The fantasy: You get 14% interest, and have a 1-2% chance of owning the property free and clear.
The reality: Competitive bidding on improved property is such that real long term yields are around 6%, the odds of getting a Deed to an improved property are less than 1 in 1000. Competitive bidding on vacant lots is even more competitive. Unless you are pretty sophisticated and have a system to quickly screen out properties, you will end up taking a shot gun approach, and you will be out bid on everything except what the experienced investors don’t want. Consequently your money would be better spent buying lottery tickets. “What system should I use?” you ask, well I’m not going to tell you.