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Zink Racer
Join Date: Aug 2005
Location: Spokane WA
Posts: 3,988
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Poster Child for Speculative Investors
I've certainly heard all of the horror stories about homeowners upside down on houses. This poor guy might be their King.
My ex ended up with our family home in my divorce. We're still on good terms and I own property adjacent to the house. She was going to sell but in this market decided to rent for awhile and wait it out. Asked me to meet with her potential renters with her. The guy renting the place has 2 youngsters and his wife is pregnant with their 3rd. Nice family, seems like a bright guy. Very honest about his situation. Explained that he got caught in the downturn and had been investing in residential properties in quickly appreciating markets like Phoenix. He's upside down now on a portfolio that includes 30 houses from Tacoma to Phoenix. He has 30 mortgages he is floating. They're having to sell their house and rent to keep from going bankrupt and he's liquidating as quickly as possible. 30 mortgages? My head was spinning. I've bought and sold properties over the years and at one time had 5 rentals, now down to one. Was always very cautious and many times thought overly so. Guess I don't feel so at this point. No point here really, just thought it was interesting to see the news come to life in my old kitchen and hoping for this guys sake and his family that he can work his way out of this mess.
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Jerry 1964 356, 1983 911 SC/Carrera Franken car, 1974 914 Bumblebee, a couple of other 914's in various states of repair |
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01-10-2008, 10:11 AM
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Dog-faced pony soldier
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He should just file the BK and get it over with. Waiting is only going to prolong his agony. In his case, I'd say it's an absolute inevitability anyway. Might as well start the "10-year-clock" earlier rather than later.
(Note: I'm not a lawyer, but I seriously doubt any lawyer would give different advice unless there's a lot he's not divulging).
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A car, a 911, a motorbike and a few surfboards Black Cars Matter |
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01-10-2008, 10:22 AM
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Registered
Join Date: Oct 2006
Location: Colorado, USA
Posts: 8,279
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Housing prices never go down.
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01-10-2008, 10:42 AM
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Formerly bb80sc
Join Date: Aug 2001
Location: Hollywood Beach, CA
Posts: 4,361
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Cheers -Brad 2015 Cayman GTS 2015 4Runner Limited |
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01-10-2008, 10:45 AM
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Registered
Join Date: Apr 2001
Location: Linn County, Oregon
Posts: 48,513
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Quote:
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"Now, to put a water-cooled engine in the rear and to have a radiator in the front, that's not very intelligent." -Ferry Porsche (PANO, Oct. '73) (I, Paul D. have loved this quote since 1973. It will remain as long as I post here.) |
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01-10-2008, 10:46 AM
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Registered
Join Date: Oct 2006
Location: Colorado, USA
Posts: 8,279
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Quote:
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01-10-2008, 11:05 AM
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Custom User Title
Join Date: Oct 2002
Location: Miami
Posts: 4,294
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He was way too aggressive- try to hit a homerun EVERY time, and you will eventually blow it.
Conservative real-estate investing is nearly a sure-thing, and certainly should never bankrupt you. A said above, being conservative sometimes makes you feel like you are missing out on big profits, but read stories like this and it should keep you in check. Stay in the middle of the road. As soon as I have the funds, I will be investing in real estate. Commercial though- I will never deal with residential renters. Office/Industrial is the ticket my friends. |
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01-10-2008, 11:13 AM
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Too big to fail
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That's not 'investing,' that's ' gambling'
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"You go to the track with the Porsche you have, not the Porsche you wish you had." '03 E46 M3 '57 356A Various VWs |
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01-10-2008, 12:42 PM
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Unconstitutional Patriot
Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
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Get rich slow rarely fails.
According to NAR, approximately 40% of existing home sales in 2006 were for investment or second homes. Before the nation realized housing never goes down, second home and investment home purchases were less than 10% of total sales. How many füched borrowers are there? |
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01-10-2008, 03:16 PM
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