ouch $9,800/month negative cash flow

[Coronita]

I don't view this guy's problems as a lack of formal education, but rather very poor business judgment, which tends to be liberally distributed across the spectrum of educational attainment.

Smart people make dumb decisions. Dumb people make smart decisions.

 

I do rememeber the marshal reddick seminars. If I recall, reddick teaches at SDSU (or is affliated). I recall he was the empitome of overextending. I know a lot of people who followed him. I hope they are ok.

 

$9800/month negative is crazy. As far as bankruptcy rules. Latest bankruptcy rules don't allow you to completely wipe out debt. 

[Mr_Brightside]

If he’s bought these properties in the last four years and has only $150K in cash he probably already has a negative net worth.

[Mr_Brightside]

If he’s bought these properties in the last four years and has only $150K in cash he probably already has a negative net worth.

[Mr_Brightside]

If he’s bought these properties in the last four years and has only $150K in cash he probably already has a negative net worth.

[Mr_Brightside]

If he’s bought these properties in the last four years and has only $150K in cash he probably already has a negative net worth.

[jficquette]

I hope his girlfriend is good looking.

John

[jficquette]

I hope his girlfriend is good looking.

John

[jficquette]

I hope his girlfriend is good looking.

John

[jficquette]

I hope his girlfriend is good looking.

John

[VoZangre]

The Physics of WORK

seems speculation is a way
of earning without actual work…so..
when people go belly I simply could NOT care less.

NOT one jot, or joule.

“Definition: Power is the time rate of doing work or, the amount of work done per second. ”

[VoZangre]

The Physics of WORK

seems speculation is a way
of earning without actual work…so..
when people go belly I simply could NOT care less.

NOT one jot, or joule.

“Definition: Power is the time rate of doing work or, the amount of work done per second. ”

[VoZangre]

The Physics of WORK

seems speculation is a way
of earning without actual work…so..
when people go belly I simply could NOT care less.

NOT one jot, or joule.

“Definition: Power is the time rate of doing work or, the amount of work done per second. ”

[VoZangre]

The Physics of WORK

seems speculation is a way
of earning without actual work…so..
when people go belly I simply could NOT care less.

NOT one jot, or joule.

“Definition: Power is the time rate of doing work or, the amount of work done per second. ”

[patientrenter]

I think many of these now overextended young people with apparently limited career prospects who became no-money-down buyers of multiple properties were doing a very smart thing. Dumb lenders allowed them to buy valuable options on house prices for free, or for very little. All they had to lose was a few years’ worth of good credit. Not a big price to pay for someone with no money and limited prospects.

Let’s say the monetary value of poor credit for a few years for such a person is $20,000. That’s their downside. If they bought 8 properties worth $300K each, and the properties went up by 50% over 3 years (not unusual in recent times) they probably netted almost a million. No one could know the future, and the gamble for recent buyers is turning out badly, but it was a gamble heavily loaded in favor of the ‘dumb’ buyer.

Patient renter in OC

[patientrenter]

I think many of these now overextended young people with apparently limited career prospects who became no-money-down buyers of multiple properties were doing a very smart thing. Dumb lenders allowed them to buy valuable options on house prices for free, or for very little. All they had to lose was a few years’ worth of good credit. Not a big price to pay for someone with no money and limited prospects.

Let’s say the monetary value of poor credit for a few years for such a person is $20,000. That’s their downside. If they bought 8 properties worth $300K each, and the properties went up by 50% over 3 years (not unusual in recent times) they probably netted almost a million. No one could know the future, and the gamble for recent buyers is turning out badly, but it was a gamble heavily loaded in favor of the ‘dumb’ buyer.

Patient renter in OC

[Author]

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