Make Money? - Posted by Martin Greenberg
Posted by Martin Greenberg on October 27, 2003 at 04:10:37:
Are we suppose to make money investing in real estate? I must have been asleep during that part of the seminar.
My first investment was a REO for a quick flip. The deal was thin but I bought the house Thursday and Monday it was under contract. The buyer draged her heels and never closed. With holding costs I lost a couple thousand.
My second investment was a 4-plex I wanted to rezone for an assisted living facility. The place was not rezoned. Emptied the place and did some cosmetic work. Lost five grand.
My last investment was an existing assisted living facility. As a RN, I thought I would combine real estate investing and my RN. Three years later I lost $50,00 cash, my mother put up $100,000 cash and that is ALL GONE. I fed the red ink with credit cards (the residents have to eat and have their medications if they can’t afford them) to the tune of $125,000. My 80 year old mother had to work in the place for a year (ironic, isn’t that?) and fed the red ink about another $50,000. I am filing bankruptcy. My brother is not talking to my mother or myself due to the money mom lost. My business partner is filing bankruptcy too.
The large motel chains came to town after we bought the business and changed the ALF climate in the county.
The conclusions I have drawn are only invest in straight ahead real estate and the hell with old people that can not take care of themself. I plan not to be one of them if I live long enough to retire when I am 75 (because I will have to work that long before I can retire).