NBA Player Loses $110 Million on Real Estate - How to Avoid His Mistakes
I ran across VIDEO of on interview with former NBA player Antoine Walker about how he lost $110 Million with Real Estate. It's a sad situation which could have been avoided if he learned the lessons we teach at CashFlowDepot.com
Mr. Walker got bank financing to buy real estate. That's something we strongly discourage at CashFlowDepot.com because (1) the fees to get a loan are high (2) you have to give up your privacy information, but most importantly (3) you usually have to personally guarantee the loan. That means if you default on the loan, they can come after you personally and all your assets for the money... and that's exactly what happened to Mr. Walker.
Instead of getting bank financing, it is much better to buy with seller financing or find a private lender who will finance the purchase. Some private lenders want a fixed interest others prefer to get part of the cash flow and equity. There are a lot of people with a ton of money sitting in the bank earning 1% who would love to find a way to make 3%, 4%, or 5% on their money.
Instead of giving a personal guarantee for any kind of financing, it is better to make the property the SOLE security. If circumstances change and you can't make payments or the economy tanks, the worst that can happen is you lose the property. But no one can come after you or your other assets.
There's the traditional way to buy real estate - and the creative way. The creative way will help you avoid risks!
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