WheelsRCool
Contributor
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- Aug 12, 2007
- 436
- 59
Hey, I've read of about three major real-estate developers who became wealthy, then went broke and were in deep debt because the market crashed and they had been so leveraged in their real-estate developing. I also read on this website in a thread where someone mentioned about how many of the big guys can be very leveraged.
My question is, doesn't that put a lot of your wealth at risk? I mean, if the market crashes, you can lose it all overnight it seems.
Or is the ideal way, if you are leveraging for real-estate development, to have half your net worth in other investments, companies, etc...along with a good supply of cash on hand, so that if the real-estate market does crash, you don't go completely bankrupt?
My question is, doesn't that put a lot of your wealth at risk? I mean, if the market crashes, you can lose it all overnight it seems.
Or is the ideal way, if you are leveraging for real-estate development, to have half your net worth in other investments, companies, etc...along with a good supply of cash on hand, so that if the real-estate market does crash, you don't go completely bankrupt?
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