I think if people were a little more aware of/ comfortable with the fact that these human psychological booby traps not only exist, but are very easy to fall into even for the educated/experienced/professionals - it's how we're wired as animals - maybe fewer investors would get taken for these rides.

I know many developers like yourself with the same issue ("trapped" equity they can't access unless they sell the property).

@Daniel CruzOne thing I have learned from investing in section 506 house flip investments with regard to states is to be aware of states that are judicial foreclosure states versus non-judicial foreclosure states.  

But with my head held high gone was all the normal trappings of RE success being served as a big slice of humble pie :(.

highlight_post=6803139&page=1#simplified-forums__discussion__replies-containerI have no reason to alert you of this danger other than honestly trying to help you avoid the trap that the rest of us fell into.FOR YOUR OWN SAKE, DO NOT BELIEVE ANYTHING MARCO OR NORADA TELLS YOU UNLESS YOU SEE IT IN WRITING AND HAVE IT VERIFIED BY YOUR LAWYER.  

I'm happy to discuss further with anyone who has an interest in Section 8 in Toledo.

Periodic 1031 exchanges when appreciation stalls out, or performance goes down, or trapped equity is costing you return are all great strategic moves.

When I got started I fell into this trap of trying to create all this complexity and then realized it was not worth it at all and all it did was create chaos and add more costs.

Hi @Constance Kang,I wish I would have seen this post before I fell into that $30k "financial education" trap.

I am still in the education phase and frequently finding myself in the trap of "I must do it all".