Where did they go wrong?

[TheHaitian]

Long read but so fascinating and crazy!

www.thecut.com/2020/08/1214-dean-street-brooklyn-landlords.html?utm_source=fb&utm_medium=p2&utm_campaign=Sub+%7C+Content+Campaign+%28Mid+Funnel%29+%7C+Sept+%7C+DYN+%7C+Traffic+%7C+Close+to+Paywall+%28Mixed%29+%7C+9.3.20&utm_id=fb_cmp-6208588131207_adg-6208588136207_ad-6213070842607&k_cca=PleaseAssignTagToAd&fbclid=IwAR1RhMuiA9IcFUgfRMLHdXcG3YV2gEJ1n0sId8ua8QnX0e7F6jhs4OJP39Q

Encouragement to keep on working on getting my finances together but also so crazy at the same time. From them expecting to just kick out tenants to living in their yoga space... like where did all the money they collect go?

The couple were carrying nine mortgages, totaling $4.6 million, on six properties. Even if the houses they own are worth more than $9 million, as estimated by Zillow, that money in the short term is inaccessible.

[CCL]

You're right. That was a long read. I couldn't even finish it and gave up after about 2/3.

That's kinda the way it goes when you are robbing Peter to pay Paul. It eventually catches up with you.

I've never had a desire to own rental properties or even businesses, really. If I were going to invest in real estate, I'd buy properties in better shape to begin with. Then, instead of buying more, I'd do a better job of managing the ones I had.

[swamp]

assholes gonna asshole 

[Deleted]

Leverage. Debt isn't always evil; I'm retired and took out a mortgage rather than pay cash for the house because I got a 3% interest rate. I took out mortgages on earlier homes because I didn't have the cash. I "won" big on two homes and broke even on the two others. I just don't have enough risk tolerance to buy property after property, putting down 10% and relying on rents to pay my mortgage. Too much can go wrong.

It also sounds like they were terrible business people and taking advantage of desperate people- both their employees and their tenants.

[swamp]

Sept 29, 2020 7:46:24 GMT -5 @athena53 said:

It also sounds like they were terrible business people and taking advantage of desperate people- both their employees and their tenants.

Fixed it. 

[dannylion]

They got greedy (they probably started out greedy and worked their way from there to entitled).  

They assumed nothing would occur to interfere with their ability to continue exploit their target demographic.  

Assuming there would be only an upward trajectory, they got in way over their heads.  

They had no contingency plan.  

Greed.  It was mostly greed.  


ETA:  Yeah, the "they were terrible people" assessment is probably the best explanation.  

[gs11rmb]

I can't get past the paywall, which is a pity because the story sounds very interesting.  I enjoy a good dose of schadenfreude.  I'm also aware that isn't very nice of me!

[Cookies Galore]

They are just terrible people. That's where they went wrong.