Okay, so tell me again why lots can't be worthless?

[xmtpedprl]

Hi there,

I took some heat a while back for making the claim that lots can, and sometimes are, worthless. Below is one example why I made the claim:

http://www.detnews.com/apps/pbcs.dll/article?AID=/20080813/METRO/808130360/&imw=Y

Nasty!

Thanks,

Dave...

 

[Indiana Jones]

I was going to say, "Go to Detroit, they're everywhere".

Then I clicked your link. lol.

 

[Metamorphic]

The agent did say that the buyer agreed to pay the full list price of $1, and planned to pay cash.

I would have gone to a mortgage broker and see if he could get me 100% financing on a 5 year arm with stated income.

 

[Willie]

$1.00 house / Michigan / Detroit

This might get moved to the Michigan forum, but I think it is a decent read for all.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20080813/METRO/808130360/&imw=Y

 

[TEL2002]

Wow!!!!!!!!!!!! Interesting article. But the condition is nothing that REO appraisers are not familiar with.

 

[Terrel L. Shields]

Since $4k in taxes are due, the price to the buyer is actually $4001...

"Land", i.e.- a vacant lot - in the same place does not accrue the same liability as a house, nor does it accrue the same tax liablity nor insurance requirements.

The situation above is unique but not unknown. I knew a fellow who refused to serve in WWII. After released from Leavenworth after the war he left his hometown due to people critical of his "cowardice". He went to St. Louis, eventually investing in downtown buildings that he bought for back taxes or sometimes simply given to him. He held them for 10 - 15 years and sold them as the area regenerated. His "worthless" investments made him wealthy. He moved back home and sold tractors and RVs which he paid for in cash. He recently died and left $250,000+ to the little community which had reviled him so long ago.

 

[Restrain]

Lots can have such restrictions placed on them by local, state, and federal regulators that they have no value or a negative value.

 

[Michigan CG]

I was going to say, "Go to Detroit, they're everywhere".

Then I clicked your link. lol.

Me too.

Dave, find the thread where people say lots cannot have negative values and beat you up. I completely disagree. There are examples of negative value everywhere.

 

[Michigan CG]

Willie, I merged your thread with Dave's since he was quicker than you.

 

[xmtpedprl]

That would be the 'Cost Approach Insanity!' thread, now residing somewhere on page 32 of the threads.

And I meant that intellectually, not physically. I was being made to feel, well, a little less than correct for a while there, even though I thought I had my stuff together.

Dave...