Clark was recently asked by someone if he thought it was a good idea to buy real estate online -- without having seen the property. The Los Angeles Times recently reported that more and more governments are doing Internet foreclosure auctions of this type.

Here's the problem: The Internet gives the false impression that you have access to every bit of info and every tool you need to determine real estate value. But as a real estate investor of 30 years, Clark says that you should never "buy by remote control." You've got to know the community, the neighborhood and the even the street where you plan to buy.

The penny-pincher has heard secondhand that one of his friends is thinking about buying real estate site unseen on eBay. He can't wait to see him and say, "Don't do it!"

You've got to know your market.