How I lost about ~1M in Net Worth in 2.5 Years - Page 4

chris babula · #31 03-22-2007, 10:04 PM

Teester I live in upstate NY and buy houses for cash. Can close on a house in 5 days in NY. PM me with details on the NY houses. Location Sq footage , Condition of the homes. #Baths and bedrooms and listed prices.

f it · #32 03-22-2007, 10:15 PM

so basically, rather than renting out/selling the houses for a loss, you decided to sit on them and take in the monthly 10k in debt

haha

Teetster · #33 03-22-2007, 10:27 PM

[ QUOTE ]
so basically, rather than renting out/selling the houses for a loss, you decided to sit on them and take in the monthly 10k in debt

haha

[/ QUOTE ]

No I'm not that stupid. I was able to rent out the Kauai home - still taking a 2K / month loss. The Kona home, despite months of aggressive marketing and 3 price cuts I was not able to rent. People who live in Kona are:

1) Dirt poor

2) Cheap as hell

3) Have tons of rental condos to choose from because there are a ton of RE investors who buy condos to rent out. So I couldn't rent the condo for even 33% of the monthly mortgage. That is sad but true.

The homes in NY I could probably rent if I don't sell them. I'd guess I'd get 50% of the monthly PITA for each.

Investing in real estate is really stupid BTW.

mmbt0ne · #34 03-22-2007, 11:00 PM

Teetster,

http://en.wikipedia.org/wiki/Dave_Ramsey

jstill · #35 03-22-2007, 11:04 PM

i feel way better about spending 3k on my spring break drunken debauchery

Banks2334 · #36 03-22-2007, 11:42 PM

[ QUOTE ]

And its not because I'm stupid. I have a very high IQ, a college degree and I research like crazy. Its that I didn't believe that we could ever lose in RE. I allowed us to become overextended and it cost everything.

[/ QUOTE ]
This just goes to show that a high IQ and degree mean nothing. How is it that you worked for Fannie Mae for 8 years yet go about investing in real estate like a retard? I've seen 16 year old girls with better investment sense. Sorry to bust your balls, but seriously, WTF?

xx44 · #37 03-23-2007, 12:54 AM

OP hindsight obv 20/20, this thread easily couldve been "how i made 1m in 2.5 years". You took a shot, it didnt work out. Like you said, in your adult life you have not experienced a down RE market, and that leads to euphoria. FWIW many, many people went through exactly what you did. But instaed of leveraging themselves in the RE mkt., they margined themselve to the hilt buying any stock that had a .com in their name in 2000. The same euphoria was there (theses stocks cant go down) and the result was the same.

From what you said, you have the inate ability to bounce back and when you do it will taste so much sweeter than the first time.

Oh yeah, big advantage you have is a loving supporting wife. Best of luck man.

TheOneWizard · #38 03-23-2007, 01:09 AM

Isn't the proper BBV advice here to Move Up and Win it Back? I say buy six more houses and try to sell them all.

You should also ditch your current Fanny Mae and move to Fanny May Candy. No matter the economy people will always want their chocolate (and it's the bomb).

pokerchap · #39 03-23-2007, 01:22 AM

I wish more BBV stories were like this. Will everyone stop writing a completely different moral? lol.

You were just unlucky? It is really just gambling if you ask me. Real Estate was supposed to go and didn't and you got screwed.

AntonHeat · #40 03-23-2007, 02:27 AM

wow dude that really sucks, unreal [img]/images/graemlins/frown.gif[/img]

Stay strong.