Unfortunately a lot of financially naive people are getting nailed out there during the housing crash. Here's one of 'em.
Seems like a really nice lady who had no business speculating in real estate and has lost thousands. Hundreds of thousands. Like $700,000. And is now blogging about it on her "overcoming real estate losses" blog. I feel for people like her, but at the same time it was people like this (along with the corrupt REIC on commission who enabled her) who inflated the housing bubble and ruined America.
Be nice HP'ers, and take this blog for a spin. Lots of good tidbits. Here's highlights from her first post from a few months ago. Amazing. And you wonder why the banks are failing. Ponzi Scheme HP'ers. One big Ponzi Scheme.
You Lost How Much??? - The time has come!!
Real estate investors who have lost money need support. I'm hoping that this will be the place to get it. Or, at the very least, whine about your experience and feel better.
My husband and I entered the real estate investment market at the end of 1999 (we are not agents or in any other related fields), when we were 33 years old. At the suggestion of my brother (who didn't enter the market until much later), we used the exploding equity in our house and started buying single family homes in Riverside County of Southern California. We lived in San Diego at the time and couldn't make the numbers work there, so we traveled 45 minutes north up the 15 and landed in Temecula, just over the county line (with houses priced 1/2 of the going rate in San Diego). We didn't know it, but Temecula was on the cusp of booming--and so was our portfolio.
In 2005, we had millions in assets. By then I was having our sixth baby and couldn't manage the houses myself. Our equity had now doubled, but we had a negative cash flow each month.
I'll give all the details in later posts, but the bottom line is that two years later (right about now) we have realized a loss of about $600,000 to $800,000.