Part 5/8:
The final mistake involves his foray into real estate investment. In 2000, he purchased his first home and began acquiring rental properties, amassing up to six at one point. However, the properties were purchased with high leverage and little cash down, leaving him in a precarious financial position.
At one point, he grossed $4,000 a month from rent but faced monthly mortgage payments of $3,000. When tenants failed to pay rent and unexpected maintenance costs arose, he found himself digging into his own finances to cover the shortfalls. Ultimately, he had to foreclose on some properties, resulting in lost investments and further financial strain.