I was doing real estate investing when it was big, but unlike people that try to finance the properties themselves while the bank really held the mortgage. I sold my property to a young American guy, he wanted me to finance it but I told him I would rent it to him for 1 year while he saved the money to get a loan from the bank. 10 months later he went through the proper channels to buy the house. He did a legit loan and qualified the right way, That was 14 months ago and he is still in the house and has even done some improvements to the home. He is only 22 years old. He worked 60 hours a week and saved up $6,000 and his folks gave him the rest for the down payment. I rented the house to him for a year while he saved up the money. I was very impressed with this young guy and made me have faith in the young people again. He just got married and I wish him the best. He works as a mechanic on construction equipment and hopefully he won't be impacted by the economic downturn.

People will do things the right way if you insist that they do. He did and now I'm sure he has more pride by doing it the right way then having me finance the deal. And I did the right thing knowing I couldn't finance the deal the right way myself and saved us both one hell of a potential headache. In the long run everything is great.

These overnight real estate investors thought they could do deals quick and easy and come out smelling like a rose but I guess that they learned roses have thorns too. I'm just mad that people that are now in crappy shape by their bad choices are now going to be bailed out by the ones that made the right choices. Take my word for it, when the economy rebounds these same people will be trying to do deals again. Thats what happens when you don't hold people accountable for their actions and they get bailed out. I say let them lose everything they have and learn something from it. There have to be lessons learned or they are doomed to repeat the mistakes.