After seeing how prices reset and watching a lot of major players around here end up bankrupt we switched to cash.

We are beyond being concerned about a potential recession, other than that it may offer the potential for another buying spree.During the early 2000-2010 RE debacle a family member would send us weekly doom & gloom emails confirming his 'internet fueled conviction' that my wife & I would go bankrupt during the impending crash of the late 2000's.

Another large landlord I know went bankrupt as he was mostly market tenants and in the last downturn they couldn't pay their rent. 

Empathy = charity = bankrupt.

Problem is if they keep making those negative value bets eventually the "genius" becomes the bankrupt even more so since these geniuses will tend to start to believe in their genius and make larger more frequent bets with other people's money.  

Realty Mogul recently had two borrowers going bankrupt and it took a year for investors to get their principals back and they got almost no interest.

Hopefully not just a 1 unit llc guarantee they can remote bankrupt and walk way.No legal advice given. 

So if the banks want to do a massive wealth transfer à la the Great Depression, they can call in all of their 'expired' balloon loans, bankrupt half the country and take possession of half the country's real estate?

If their health bankrupted them once already, I'm not sure I would be able to to evict someone who can't pay me due to potentially deteriorating health.

Sticking your head in the sand and hoping we are doing the right thing is a surefire way to get sued or go bankrupt.