A friend of mine has been an avid real estate speculator for the past 4 years. I just talked to him a couple of days ago and he confided that he has a $9,800/month negative cash flow. He and his girlfriend had purchased 8 properties through various sources including Marshall Reddick seminars.
He also confided that they are living of their credit cards and his income has substantially gone down since he is a Mortgage Broker. Surprise, surprise.
What flabbergasted me is that he still thinks that they can manage to stay in the game and avoid foreclosures/BK. Honestly, I don’t see how. His savings of about $150k can dwindle mighty fast with this kind of negative cashflow.
