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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MSI who wrote (5305)	9/14/2002 3:28:58 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

*Easy to do, if one overleverages.* That's the problem with "serial real estate investors", they put down 20% or less in down payment. If "serial real estate investors" were honest, they would apply for commercial real estate loans which require a 30% to 35% down payment. But in their attempt to defraud the bank, they also place themselves in jeopardy when the real estate market weakens and rents decline. Investors who repeatedly obtain 20% down payment home owner loans for a series of rental homes are ordinary criminals. This time around I think many of these white collar criminals will do jail time. Do this repeatedly (called "serial investing") and over 20 years you will have ... I know a real estate agent who did this in the 1980's in Los Angeles. After only ten years, he had a spectacular bankruptcy.

To: MSI who wrote (5305)	9/14/2002 4:16:53 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

Elroy knows one real estate agent who went bankrupt after serial investing...I know many real estate agents who are richer than hell today after doing the same thing. Whenever they need a little cash, they simply sell off a piece of their inventory. In fact, many of them often referred to those houses as their retirement funds, and, come to think of it, I can't recall very many conversations with real estate people in which the stock market was ever mentioned. Maybe they don't even have IRA's...lucky folks today, I guess.