The real estate market often attracts non-business people more than other business fields. There are many reasons for this, some of which are the promise of residual passive income, building equity, and a “simple” business model that can be understood. But for all the great reasons to jump into real estate, there are always newbie landlords that end up failing, in debt, or bankrupt.
Although every situation is unique, here are the top 5 reasons why new landlords lose in the real estate game. Missing even one of these will make a new real estate venture turn south.
You might be a losing landlord if you’re:
Yesterday, a mortgage settlement was announced between Federal and State Governments and 5 major banks. The deal will require lenders to write down the mortgages of certain borrowers who are underwater. Homeowners who owe more than their homes are worth will see a reduction in the principal amount. The hope is this will curb the number of foreclosures and house prices will start increasing again.
The reality is that this deal has great points but a lot of shortcomings.
Mortgage Finance Act of 2011 – legislation submitted by Sen. Johnny Isakson with little chance of passing congressional scrutiny; the act is, unfortunately, an example of political showmanship, appealing to public opinion on a critical policy issue. Furthermore, the Act clutters the congressional to-do list, regarding housing reform.
Make waves and the voters will take notice?
This commercial is too good not to share with everyone. And, I am sure many of you can relate quite well with this.
![[f]](/blog/wp-content/images/facebook_follow.png){kind=small}
