By Tyler Durden | 14 May 2019
ZERO HEDGE — Inspired by home-flipping reality shows and a thriving culture of newfound ‘experts’ in late state bubbles, young real estate investors in the Bay Area and Seattle are getting hammered amid a slowing housing market combined with payments on high-interest “hard money” loans, according to Bloomberg.
One such young investor, aerospace engineer Sean Pan, got into property investing after reading Robert Kiyosaki’s financial advice book Rich Dad, Poor Dad – then scouring online investment forums and meetup groups to expand his network.
Sean Pan wanted to be rich, and his day job as an aeronautical engineer wasn’t cutting it. So at 27 he started a side gig flipping houses in the booming San Francisco Bay Area. He was hooked after making $300,000 on his first deal. That was two years ago. Now home sales are plunging. One property in Sunnyvale, near Apple Inc.’s headquarters, left Pan and his partners with a $400,000 loss. “I ate it so hard,” he says. –Bloomberg
As rapid price gains fueled a new crop of home flippers (2005 redux), young investors in areas which got ‘too hot’ are experiencing their first housing slowdown – and have been forced to take losses from properties sitting on the market too long. […]