Here we are in Part 3 of me telling the backstory of how I got started in real estate investing. This episode is probably the most telling, the most embarrassing and the most painful.
I really thought I was doing well. Everything looked good on paper. I owned about 14 homes at this time, but I bought them all wrong. The major mistake I made was that I ignored the fundamentals. If you’ve ever heard me say, “Stick with the fundamentals,” now you’ll know exactly why I say that.
I was way overleveraged, and when the crash hit I went down with it. It was an incredibly stressful time in my life. Now I was faced with vacant houses, plus one actually had a fire, and others were trashed by the tenants.
I struggled through this time, and as painful as it was, it’s a wonder I stayed in the business at all. But here I am, older and wiser!
I hope others can learn from my mistakes.
Listen and Enjoy:
- The need to stick with the fundamentals
- Failure to ask the right questions
- Buying on appreciation
- Playing with the number to make them say what I wanted them to say