Inquiring minds are looking to the OC Register showing you can make a lot of money in real estate and you also can lose…and lose big time:
The Palm Desert retirees believe they lost the $400,000 they had invested with Pacific Property Assets when the Irvine-based apartment firm filed for bankruptcy. Since they let their interest accrue, they lost their earnings too.
And they have plenty of customers:
Bankruptcy court records show that nearly 700 mostly elderly investors entrusted their savings in PPA, as the firm is known. Attorneys estimate that they lost $80 million to $90 million – most, if not all, the money that investors put in.
What many are not recognizing is that there is a huge difference between the downturn of the early 90’s and today’s recession. The demographics of the US is not a normal bell curve. Due to the baby boom generation, a huge proportion of the US is now on the verge of retirement age yet have lost everything. The baby boomers are 20 years older and they don’t have enough time to make it back financially.
This is an epic event in this country’s history.
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