Lots Of Rentals, Little Cash

Tracy has an unbelievable number of rental properties, and she's thinking of drastic measures to fix it.

QUESTION: Tracy got 14 rental properties, which became her husband’s full-time job. They became overwhelmed, so they picked up extra jobs. They haven’t been late on any payments, but every dime they earn is going towards their rental properties. Dave walks Tracy through a short sale and why she shouldn’t declare bankruptcy.

ANSWER: Put these on the market and get offers on them. Take those offers to the mortgage company. If they are not enough to pay off the mortgage, that’s called a short sale. Negotiate your way through these, because if you just walk away, they will chase you to the ends of the earth until they bankrupt you. If bankruptcy hits you, you’ll probably lose your personal residence and your cars and everything else in the process, so I’m not going that route. Keep fighting, get these properties sold, and don’t go bankrupt.