Where are these investors now?

[rustica]

Thanks Eri, I love the quote in your signature. My fav quote when thinking about the situation is 'wealth is what you are left with when all your money is gone' (by Roger Hamilton)
Hi Keys, actually that -8000 was property related and personal now I think about it. Financing was all done through No Doc loans

[donna]

Hi Rustica,

Sorry to hear about your property investment demise....but as you know through following RH - you won't be down for long.

Send me your story and I will get it published on PropertyBlogs for you - and any future updates too.

cheers,

Donna

[rustica]

Hi Donna, and thanks You can check out a WD version of the story on the link https://apps.facebook.com/easypromos...6697/613685562

[donna]

We will set you up as a Contributor - what info do you want to show in your bio - that accompanies all your posts on PropertyBlogs? See example....

Liz Koh Moneymax was established by Liz Koh, one of New Zealand’s leading Certified Financial Planners, to provide wealth creation, wealth management and wealth protection advice so that you can achieve the things in life that are important to you. Visit -http://www.xx.co.nz/
Read Liz’s articles here …

Best to send the info to me Rustica - [email protected] and I can get our Admin person to get you set up as a contributor. We will also split your piece into two and add an intro - as we have known you for some time. Nice one.

cheers,

Donna

[spaceman]

Hi....neither of those links work for me .....am I the only one???

Cheers
Spaceman

[Wayne]

work for me so maybe

[spurner]

Crikey, sorry to hear that things didn't work out as planned. Thanks for sharing your story though, I'm sure it will be of value to some people, and reinforce the importance to all of us of having cash flow positive property.

Hi everyone. It is great to see a few familiar posters here and a more constructive type of posting. We lost everything including our family home. We had 7 income streams worth over $3million, but they were -$8000 cash flow per month. We were trading to top up the difference. GFC came, trading stopped, and could not find the -$8000 per month. Document servers, fire sales and a mortgagee sale later, we are still trying to get back on the property ladder, but with a greatly enhanced understanding of financial literacy (basics I might add). I recently entered a (Wealth Dynamics) short story competition and it outlines the last few years and what I am up to now for those who are curious.

https://apps.facebook.com/easypromos-premium/voteme/6697/613685562

[speights boy]

Financing was all done through No Doc loans

How many of the lenders you used are still in business?

[donna]

Hi....neither of those links work for me .....am I the only one???

Cheers
Spaceman

I'll send you a link as soon as we have it on PropertyBlogs -

cheers,

Donna

[flyernzl]

Very sorry to hear of Rustica's experience, but life goes on.

I really do have one question though:

7 income streams worth over $3million, but they were -$8000 cash flow per month

What on earth possessed you to buy those 'investments' that were so hugely cash flow negative?

(I'm not being pokey, I really would like to understand why some people go into these sort of deals.)

[drelly]

What on earth possessed you to buy those 'investments' that so hugely cash flow negative?

(I'm not being pokey, I really would like to understand why some people go into these sort of deals.)

Flyer, there were a lot of people investing like that a few years ago. Most would have been seminar "graduates" (read victims) who were full of
paid-for enthusiasm that led to lots of debt and never mind the cashflow. It was all about the capital gains.

[eri]

-$8000/mth

is about -$2000/wk

which if taxed at 33%

would need ALL of an extra income of about $150,000/yr...

[speights boy]

GFC came, trading stopped, and could not find the -$8000 per month.

The GFC was initiated when the credit bubble burst.

It burst because too much irresponsible lending was occurring, with people borrowing more money than they could afford, and buying poor performing assets.

People were too free with OPM (other peoples money), and too many savers (non-borrowers) have been hurt by people not repaying the debt they signed up to.

[TheLiberalLeft]

So it's all rustica's fault then?

[Toasty]

After poking around the Wealth Dynamics information and reading about Roger Hamilton I would be careful it doesn't happen again....