And for example if that area is North Carolina, they may go bankrupt when a hurricane hits NC & does billions of dollars in flooding damage across the state.That said, I’d recommend everyone go to AMBest.com and check the rating of your insurance company before signing up for insurance.

It would have bankrupted me (insurance issues, amount of damage, getting the contractors working, etc. took a while).

It is true the national news media paints an ugly picture of crime, abandoned houses, wild dogs in the streets, bankrupt cities and poisonous water.

What most highly leveraged investors forget to tell you is that they’re not calculating for risk which means if you have very little equity in your rental properties snd the market tanks and you have vacancies you’re going to foreclose or go bankrupt.

http://m.news4jax.com/news/eureka-gardens-concerns-lead-to-inspection-sweep/35615660

When a market is slowing, builders are the first ones to go bankrupt.

I wish I would have found this site last year, as I've made my share of rookie mistakes, but hey, even Trump has gone bankrupt!

However, this is almost always protection from liability of debts incurred during the normal course of business, ie, if the business fails, the business goes bankrupt while the owner isn't liable.

I agree that when going into real estate, I'll definitely have to do my best to generate wealth to prove to people who say I'll go bankrupt doing real estate that they are wrong.

But that's only when you know what you're doing, and that's why we did not include that in the 10/20 book shown above, as we were afraid people would misunderstand and bankrupt themselves.