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Updated over 12 years ago on . Most recent reply
Whats the WORST real estate deal you ever made?
As a new investor I would love to hear about the Bad and the ugly deals...
Most Popular Reply

- Lender
- The Woodlands, TX
- 9,342
- Votes |
- 5,978
- Posts
I purchased a old car dealership building at a foreclosure auction. AA couple days later I was approached by an attorney representing someone who wanted to buy the property from me and offered $25K more than I paid. I didn't even consider it as I was sure I could rent the property to two or three tenants and receive a return of 18-24% annually and then sell for double what I paid.
Three years later I still had not secured a single tenant. In the meantime I paid over $65,000 in property taxes and $9000 in insurance. I finally received an offer to purchase which I negotiated up to a price equal to my purchase price. So I lost $65,000 in the taxes paid, $9000 in insurance premiums, $13,000 in Realtor's commission on the sale, a total of $87,000.00 on a $275K investment, and that does not include the opportunity cost of tying up $275K for 3 years.
- Don Konipol
