If you are going to play in the real estate investment business your appetite for risk is greater than the  average bears. So it is no surprise that real estate investment companies, builders, and suppliers are starting to fail as Florida tries to recover from the housing bubble.

Real estate is a very capital intensive business and when there is a downturn it  is very easy to get exposed. But there is a flip side to the equation, these same folks typically are not going into the deals with blind optimism. Most have paid the lawyers to protect themselves as much as possible in the case of failure and will be back on their feet quickly.

Because as we know, great rewards come with taking risks.

Of the 22 companies that filed for bankruptcy protection since late October, 16 are real estate related. Of those, seven are builders or developers and nine are suppliers or subcontractors. The largest filing of the batch is that of Longhorn Development and Forefront Construction, a pair of Port Charlotte companies headed by home builder Jeffrey Lauro.
Court records show that Longhorn paid $8.2 million for 34 vacant lots and the Eagle Golf Course in Port Charlotte in early 2007. But by the end of the year unpaid sellers and mortgage holders began to file liens for want of payment, eventually forcing Lauro to file for bankruptcy protection.
Before starting Forefront, Lauro was a full-time real estate investor, the company’s Web site says. via HeraldTribune.com

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