Another Reader
Thinks s/he gets paid by the post
- Joined
- Jan 6, 2013
- Messages
- 3,417
I don't agree with the OP that he did well. In my view, he did things that caused his problems.
1. Concentrated his risk in one property.
2. Used the property/properties as an ATM without a plan to pay it/them off.
3. Failed to recognize the market was turning and did not bail out when he could.
4. Dumped everything into a failing property.
5. Did not have the resources left to hire an attorney when it was necessary to settle the default case.
Really, the OP just did what millions of homeowners did during the housing market crash. Lots of people pulled out equity from their houses in 2002 to 2007 and faced disaster when they lost their jobs and could not sell their houses. Bankruptcy attorneys were booked solid from 2009 through 2012.
Astute investors find ways to insure themselves against this type of loss. The OP did not. He also did not take advantage of the TSP when he was in the military. Had he done that along with investing in the real estate, and left it alone, he would be much better off today. Diversification is a form of insurance that would have helped him.
The OP now plans to buy rentals for cash in Maine. He is 59 and wants to start a new business that requires a lot of work and is risky. He has not presented a financial case for why this is a good idea. I kind of think he hasn't learned anything except leverage can burn you.
1. Concentrated his risk in one property.
2. Used the property/properties as an ATM without a plan to pay it/them off.
3. Failed to recognize the market was turning and did not bail out when he could.
4. Dumped everything into a failing property.
5. Did not have the resources left to hire an attorney when it was necessary to settle the default case.
Really, the OP just did what millions of homeowners did during the housing market crash. Lots of people pulled out equity from their houses in 2002 to 2007 and faced disaster when they lost their jobs and could not sell their houses. Bankruptcy attorneys were booked solid from 2009 through 2012.
Astute investors find ways to insure themselves against this type of loss. The OP did not. He also did not take advantage of the TSP when he was in the military. Had he done that along with investing in the real estate, and left it alone, he would be much better off today. Diversification is a form of insurance that would have helped him.
The OP now plans to buy rentals for cash in Maine. He is 59 and wants to start a new business that requires a lot of work and is risky. He has not presented a financial case for why this is a good idea. I kind of think he hasn't learned anything except leverage can burn you.