i went bankrupt need help - Posted by Ron


#1

Posted by Ron on December 25, 1998 at 15:49:31:

Thanks for the positive feedback!


#2

i went bankrupt need help - Posted by Ron

Posted by Ron on December 25, 1998 at 12:33:21:

Hello,
I was hoping to get some input from some experienced people in REI. I jumped in too fast about 2 yrs. ago and bought too much to fast and ending up losing everything. I know it was my mistake but I also know that REI is the way to go and the way to get out of my mess. My main problem was a 8 unit bldg. that needed major renovation and tied up to much money and then I could not get proper financing(I had lease option on it). Instead of waiting to get this cleared up I went ahead with the purchase of several other homes that needed renovation thinking i was going to get the 8 unit done and sold but I ended up getting everything boughed down and then it snowballed until I lost everything including my own personal house.
But it was my fault and I lerned alot and will not make the same mistakes again but now I need some pointers on how to proceed with bad credit and a bankuptcy on my record.

Any suggestions would be greatly appreciated.

Thanks
Ron


#3

Re: i went bankrupt need help - Posted by Doris - Va.

Posted by Doris - Va. on December 30, 1998 at 18:31:48:

It is tough to go through. I know. I lost my mall
retail store and 6 months later had to do a BK.
When the cashflow stops there is no money to pay
those final bills - not to mention the IRS and
other taxes. I was able to keep my mobile home
which was paid for and also my van by re-assuming
the debt. Also of some help was my husband’s
military retirement.

It has been three years this month and that is
turning the corner on some credit records. Also I
was able to keep my American Express card by not
listing it as a debt since it always has a zero
balance each month. That was a godsend for
emergency gas and food.

Two years managing an antiques shop helped and then
a call for help from my daughter sent me to Italy
for 6 months. Now I have been home for 6 months-no
job and just hanging on financially. In November I
attended a R. E. seminar - started studyng and
reading. Then I found this site with answers to so
many of my questions. The only thing I lack is the
nerve to get out there and do it.

THAT IS MY NEW YEAR’S RESOLUTION! Get out of the
house and start talking to the realtors - the
investors - the people who will help you make it
happen.

I know I can do this if I can just take that first
step.
You have the advantage of having done it even if
you made mistakes. Now you will do it right this
time and gain back all you have lost.

Doris - Va.

ps. Apply for secured credit cards as a start in getting some credit ( hopefully to be used in getting started again in your investing).


#4

Re: i went bankrupt need help - Posted by Alex Gurevich, TX

Posted by Alex Gurevich, TX on December 30, 1998 at 24:04:47:

Ron,

they say it’s not how low you fall, but how high you bounce. Hopefully, you’ve learned a few things about fixing houses at least. Change your approach from rental housing to buying and selling. Avoid doing any repairs yourself.

There are 2 basic strategies: 1) buy nice homes in good areas that do not need repairs by taking over existing loans, or getting owner financing, and resell with owner financing for profit from downpayment, payment spread and cash spread at pay-off time, and
2) buy ‘fixers’ so cheap that you can sell them quickly to bargain hunters.
It’s all in the courses available right here, on this site. Learn marketing methods to attract motivated sellers to call you and you’ll never need to go to the bank to borrow money or to furnish your credit report.

Life is just becoming more fun. There is only one direction to go from where you are, up.


#5

Re: Hang in there buddy! - Posted by Jim Simons

Posted by Jim Simons on December 26, 1998 at 10:01:51:

Hi Ron,

Well I really can’t expand on some of the excellent advice you’ve already been given here - but maybe I can give a little hope.

You are in good company. Don’t get me wrong, I’m not in favor of claiming bankruptcy. if you don’t have to, but if you have - All is NOT LOST. If you did a little research about some of the richest and most successfull people in the USA, you would see that many of them have gone bankrupt - many times - and have come back on top.

I think the key here is Perserverence and Knowledge. I think many succesfull investors out there would tell you - If they went bankrupt today, they could be wealthy again next year. Why? Because they have learned how to do it (Knowledge) and they won’t give up (Perserverance). You can do it too!

True - Get all the Knowledge you can. Learn from your mistakes. Learn how to protect yourself and your assets. Have the courage to try again, and again and be patient and methodical. Work on developing a good REI Team (lawyer, accountant, agents, other sucessful investors and contacts) and use thier knowledge and experience.

About the only other thing I can say. If you haven’t already done so - get a book called RICH DAD, POOR DAD What the rich teach thier kids about money, that the poor don’t. This book is amazing. You need to read it.

Good Luck and God Bless - Jim


#6

Re: i went bankrupt need help - Posted by JAvier

Posted by JAvier on December 25, 1998 at 23:11:59:

Ron,
It must be a hard thing to deal with but listen.

I am a newbie. After I got my vacation time from the company I had worked for a year and 1 month ( I was doing ok) I got a part-time thinking that I was going to do great fast with REI, and decided to quit my job before I took my vacation to Miami. After I came back from FL, I had spent more than what I thought…all I had was a part-time new job to start over again…but I didn’t sit down to see what reality ($$$) was going to be. This was really stupid. Very bad decision. With all my debt, the part-time wasn’t enough. That was really stupid. I have gone to have almost zero $ in the bank…I had to go to my family for support ($)…

But you know what, you just have to learn from it and take it with a positive attitude, just face it…I ask God for good health every day, as long as I have good health, I wont lack of money. I got a full-time job now in something that I don’t like doing, but have to cope with it, I got to learn to make decisions…
I called my last employer to tell them to re-hire me and still waiting …

Ron, there are ways around things. God will help you if you are willing to get somewhere. Do it with good will.
Don’t get turn down. Face up and good luck.
Many investors have gone thru what you’ve gone thru before thay got to where they wanted to be…

Good luck and if you have to start all over again, then look at the countries or cities that have built up again after natural disasters… they have done it.
So can you.

Keep us posted, this site will help you motivate.
Good luck,

Javier


#7

Re: i went bankrupt need help - Posted by Rob FL

Posted by Rob FL on December 25, 1998 at 17:10:18:

Buy your properties in separate entities. That way if one gets into trouble you don’t get the other ones in trouble at the same time. You may want to incorporate or form a LLC and hold your properties in a trust with your company as the beneficiary.

As for getting loans, try seller financing or lease options. Usually they require minimal background/credit checks.

Merry Christmas.


#8

Re: i went bankrupt need help - Posted by DougO(NM)

Posted by DougO(NM) on December 25, 1998 at 13:20:19:

Be very specific on the deals you do, and only work with owner financing. They don’t care about BK and probably won’t even ask. You’ll probably need a partner to get started, (money person), at least it won’t hurt. Start small and work back up, using your part of the profits from each deal to pyramid. Don’t use this $ for groceries !!! Flip hamburgers to eat if you must, but don’t spend your profits.


#9

Re: i went bankrupt need help - Posted by Ron

Posted by Ron on December 30, 1998 at 01:14:40:

Thanks for the input
I have no doubt that I will bounce back better than ever with help from this site and people like you
Thanks again


#10

Re: Hang in there buddy! - Posted by Ron

Posted by Ron on December 26, 1998 at 11:19:11:

Can’t thank you enough for the comments. Me and my wife love all the good things everyone has said.
And believe me we will succeed!!


#11

Re: i went bankrupt need help - Posted by Ron

Posted by Ron on December 26, 1998 at 11:22:11:

I agree with you 100%
God Bless


#12

Re: i went bankrupt need help - Posted by Ron Biggs

Posted by Ron Biggs on December 26, 1998 at 11:14:54:

Thanks so much for your comments!
This newsgroup is so helpful and has positive comments except for one so far. If I had found this website earlier it might have saved me some problems. Thanks again