If I had a penny every time someone said I want to by $10K houses

[Federico Gutierrez]

Maybe it's one of the most common questions because whom doesn't want to buy a cheap property at an affordable price?

But lets put it all on the table and just consider what your buying. You're not stumbling upon a gold mine, else a more experience investor would of snapped it up sooner.  The property is $10000 in a $20-40K neighborhood. It requires work as for $10000 we know it's not livable. Then lets consider $20-40K neighborhood just who your neighbors are? The kind of tenant you will attract if you plan to rent, if you plan to flip just how much do you think your profit margin is going to be $5K?

If your out of state you want a PM, but most of the time it's a neighborhood you would not want your mum to collect the rent after 7pm. So why would a PM company take on a headache (I didn't say business because ti goes back to my earlier question, just think whom your tenants are going to be?)

So please tell me WHY ARE YOU CONSIDERING THIS INVESTMENT?

[Bram Spiero]

@Federico Gutierrez 

Because in the beginning we know little to nothing. We don't understand neighborhood classes and we do not understand cashflow. We don't understand the power of leverage and how good debt is right now. We don't even know what we want out of real estate. We just see that we can start at 10,000 and think we can pop our cherry that way, not understanding the risk.

[Com M.]

It is the human condition! Odds of winning the lotto? About the same as being hit by lightning while bitten by a shark! Still hundreds of millions of tickets sold every year... Everyone wants the instant fix a quick class, or pill that will make up and fix years of bad choices.

There are guru's out there running around talking about buying these micro loan homes and making millions. Don't get me wrong I'm sure there were a few in 2009 and 2010 that were local and knew the ropes that probably did - but everyone else trying to jump into real estate for the first time and of that most also having no background in business, management, accounting, construction, etc there is a steep learning curve. 

This all happens because we are quick to believe any quick fix answer, and because guru's can't sell the truth which is you will need to work hard, learn, and persevere through years of ups and downs before landing in the promised lands of financial freedom.

All of that said, I'm going to go take my diet pill so I don't have to hit the gym, and my adderall so I can concentrate on work. Have a good rest of your morning :)