We’re at Part 4 in my backstory of how I got started in this business of real estate investing, and this is—believe me—the lowest, darkest time. It’s stressful to even remember it now. If you haven’t done so already, please go back and listen to the first 3 episodes so this one will make sense.
To review just a bit, I owned 14 (or so) houses when the crash hit; and every one of them had been purchased wrong. I had subject to purchases, some with bank mortgages, and some with private lenders involved.
I can say that I never caused a 30-day late payment to show up on the credit reports of my subject to properties Many were late, but not that late. I was faced with a serious lack of cash flow. I sometimes missed my own mortgage payments to pay on these properties.
In desperation, I accepted anyone as a tenant, never checking their background. In a few months of not paying, they’d leave or I’d have to evict. And, of course, they’d trash the place on their way out.
Ever experience a panic attack?
You may wonder why I didn’t just wholesale a few houses and get some quick cash. I explain my mindset in that area. Then I talk about how that entire mindset changed.
This part of my story is truly the “watershed” moment.
Listen and Enjoy:
- My situation at the time of the 2008 crash
- The fatal mistakes I had made that led to my crash
- My mindset regarding wholesaling houses
- How and when that mindset changed
- My first wholesale deal (I was SO nervous)