How Quickly Real Estate Developers Can Unravel
The story of Doug Hartmann is not unique. He was a real estate developer working the edges rehabbing buildings and turning them condo. Hartmann worked the recent environment of low interest rates and high appreciation. And to make the serious money in real estate, he was highly leveraged.
And when the market changed and interest rates collapsed, his empire collapsed around his ears. And also the ears of his investors. The following is an excerpt from the original article in the St. Louis Post Dispatch, but please read the whole thing. It is interesting and illustrative of the big profits and also big losses real estate investing can bring.
Hartmann was not in the courtroom that day, but he was the reason they were there.
He was a curiosity to them – a failed boxing promoter turned developer who in a few short years emerged as the busiest rehabber in St. Louis. At his height, he was juggling hundreds of properties, including several high-profile ones, and generating millions of dollars for his dozens of investors.
Then late last year, with little warning, the enterprise collapsed. Fortunes were lost. Property titles were loaded with debts far beyond a property’s value. Development was halted. Allegations of fraud were cast. A dozen local banks were ensnared. Federal agencies were investigating.
Read the rest at the St. Louis Post Dispatch
Very funny comparison. However you don't need to pay property tax on Barbies 3 Story Dream House. With the unemployment ...
My wife has actually decided to study for and get her real eatate licence just so we dont ever have ...
I like your analogy in this article. The real estate economy really is like a patient who you cannot ...
Real Estate is hyper-local. Every market is different. Phoenix has already hit bottom and is starting to recover. We have ...
Great to hear that the big boys
are predicting recovery sooner than
most think.
Thanks for the value! 
I agree--good analogy. You have to crawl before you can walk. Right now, at least in Austin, many people would ...
I live in the Philippines and I am glad we are not on the lists... 
I have a few Litograghs of Presidents homes , made by Richard V. Sebring. yr. 1990 Do they have any ...
