Ebay- Sell a VCR or a Wii Game? a metaphor for real estate

The vast majority of investors are running around trying to scrape together great deals on mediocre properties. I compare that to buying an expensive and more popular device such as the Wii or buying an inexpensive and obsolete device like a VCR and then attempting to resell it on Ebay. Sure, you can probably get a VCR cheap, maybe even free on www.Freecyle.com but then you probably will either not sell it or maybe break even. Worse yet you might incur selling fees without a sale. Now, on the other hand if you were to purchase a used or refurbished Wii game and you spent say $250 on it, chances are you would be able to sell it at very handsome profit on Ebay even though the initial investment was much greater. Of course you will have to look a little harder to find a used Wii but when you do it will be worth it.

Well, I say I would rather have one Wii to sell than ten VCRs and I compare that to having ten rehab properties or one waterfront property. Yes, good waterfront is harder to locate and buy for a good price, but, it is out there., I know first hand. I am closing on a beautiful lot that I suspect would sell for $75,000 more in season than it is now, but, the bottom line is that the owner needs Cash NOW and the buyer wants a good waterfront for investment. Waterfront will always be in demand so he chose the more expensive Wii and in my opinion he made a very wise choice!

SO, INVESTORS, THINK ABOUT PUTTING ALL OF YOUR EGGS IN ONE WATERFRONT BASKET RATHER THAN IN TEN DOWNTOWN NIGHTMARES.