Overleveraging...

[Bryan P.]

Can anybody give some good real-life examples of people (or yourselves) that have overleveraged themselves in buy-hold real estate? What did it look like? What happened? What were the consequences?

Thanks!

[Ryan Pyle]

I am buying apartment buildings out of bank receivorship. In all the cases I've seen so far, the former owners paid way too much for the assets and got loans based on the LTV they could get at the time. Their financials were based on huge projected rent increases, ridiculously low vacancy rates and low expenses.