The Money Kings are keepin’ it real, baby!!!

For your consideration: Real Estate Profits And Losses. Scenario 3: No One Makes You Sign ALL Those Papers. No One.

The Money Kings were sitting around talking today about an article we found where a person racked up $1.1mil in loans on 9 rental houses in Kankakee, IL. We weren’t talking about the guy getting the properties. We weren’t talking about the fact that the article said the owner might lose his own home and file for bankruptcy because of the debt. We were talking, because we just couldn’t believe the amount of debt this guy took on, and then the article says that he feels that “someone” should have sat him down to explain to him how real estate investing works. We were talking about how this guy should read The Money Kings!

You can read about Kankakee in Wikipedia, if you’d like. We’ve never been there. Regardless of where you’re buying property, however, you gotta realize some very basic facts:

1. Real estate assets are not easy to come by in terms of paperwork and meetings and phone calls and scheduling, etc., etc., etc. Good real estate investments are even harder to come by since before you do all of your paperwork and phone calling, you have to do tons of research and (of course) burning gas driving around. It takes leg work to acquire property. This gives you lots of time to think about what you’re doing, and what you’re headed for . . .
2. If you’re getting loans for property, there are tons of papers to sign and NO ONE ever ever ever ever ever ever never ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever makes you sign them.
3. You gotta analyze your situation. If you’re making $45,000 per year, you have no business with $1.1mil in debt. Period. If you make $45,000 per year, and you think you’re going to inherit $500,000 next year, you still have no business with $1.1mil in debt. Why? Because you THINK you’re going to inherit $500,000. You don’t actually have it.
4. Investing in hope is never a good thing. If you are nervous about your real estate investment and you keep telling yourself that you hope everything works out alright, DON’T SIGN!
5. Dollar signs in your eyes won’t put money in the bank. This guy in Kankakee obviously thought he’d make a killing putting himself $1.1mil in debt. If you’re making $45,000 per year, you have to be honest with yourself that you’re not making a lot of money and that you need to be prudent. You don’t need 9 properties.
6. Tenants can be a very unreliable revenue source for a variety of reasons. If your debt is reliant on a highly unreliable source, then you should be putting less of your credit with them NOT more!

We are NOT going to blame the lenders!!!!!! Honestly, it’s not their job to reveal to you all the mysteries of the real estate market. And, trust us, as we go along with these real estate scenarios you’ll learn plenty of said mysteries. Anyway, lenders sure as hell shouldn’t be lying to consumers, which seems to be the case in many places. Maybe the lender for this guy in Kankakee was told nothing but lies from the get-go. Either way, he had to sign at some point during his ordeal with real estate agents, title companies, lenders, sellers, investors, etc. No one forces you into this . . .

Real estate can be a great investment tool over the long haul. Remember that it’s not the ONLY tool out there. Stay patient. Stay honest with yourself. Stay real.

Read The Money Kings for more money making and saving ideas every day!

Good luck out there.

The Money Kings

Keywords: real estate, liars, lenders, million, debt, loan, honest, sign, no one, forces