Asset values are cratering.

We had a policy with NREIG on a property we took back from foreclosure recently that became vacant, which was then subsequently gutted by a major fire.  

I have now come to the conclusion they are worthless by and large.. the cost and expense to litigate and secure a money judgment then collect on it will usually out strip the amount of money you lent especially in second position or that you can hope to collect, if you have to go to those steps usually the company is cratering and they will do whatever they can not to pay including hiding assets.. and going BK.If you have the wherewithal to pay off the senior debt at anytime then second position is not as risky it just becomes very time consuming and costly.

Everyone looks smart when their investments have doubled in value in a short amount of time, but some really smart people also got wiped out during the last crash that saw asset values crater in what are being described as appreciating markets. 

A wholesaler’s role is to identify properties that may be good investments, contract them, and subsequently assign the contract (or double-close) to investors.

But even if you do generate significant passive losses with your rentals, you'll be able to carry them forward to subsequent years until you, as Michael Plaks mentioned, sell your properties or offset them against passive income.

I’m not sure it’s conveying the full picture when saying the values have increased 114% in the past 10 years because that’s going back to the cratered values of the recession (down 60% from 2007-2012).

Subsequent responses do seem to hone in on determining what your ACTUAL cost of the "$10k" would have been, and I would have hoped that "the book" would have made the same distinction - but, didn't?

This can make for a good opportunity to make the property code compliant and do an attractive remodel to get rents up to market, then subsequently get a good tenant. 

Subsequent meeting is April 9, 2016.