Charles Noonan lost money during the 2008 financial crisis by owning 10 financed rental properties while running out of cash. He contrasts that mistake with tax-deed investing, which requires less upfront money and carries less risk.
Chapters
Tell me about what your biggest loss was. I wouldn't say it starts with this business. I think this is like one of the best businesses that I've started and if you invest and do right you will never lose in this and I could guarantee that you would never lose in this space for one overages. You're not putting any of your money up front. There is no investment but your knowledge and your time even though time costs. But you're not putting up any physical money tax deeds. Of course if you're buying something that's landlocked, that's not worth anything, of course you'll lose. But 2008, 2009, my biggest loss in life and it took me a long time to recover from. I was buying properties all over the United States and I was doing it the traditional way. I was, you know, getting financing, getting mortgages, owned about 10 rental properties and I was property rich but cash poor.