Here is a case study of what not to do.
Yes, it involves a lot of extra zeros and there’s big money involved. Or there was big money involved. $100 million, to be exact.
This is all about John McAfee, founder of McAfee Antivirus Software.
He made a brilliant move selling his concept.
You got the software free, but you had to pay for technical help.
Hence, the $100 million.
Where he went partially wrong was in his real estate investing.
He put his money in the wrong real estate.
There’s that giant adobe in New Mexico with all the toys, including a general store (why)? movie theater and cafe.
Then there’s the 10,000 square foot manse in Colorado near Pike’s Peak.
Now McAfee is down to his last $4 million.
So what’s next?
Sell off the real estate, of course.
But how many buyers could one expect for a large house or two that is out in the middle of nowhere?
(Since I’m from the South, the Pike’s Peak house is out. I don’t like snow).
He’s currently selling the New Mexico manse at a no-floor auction, which means he’ll take the highest bid, no matter how ridiculous.
Here’s our real estate investing tip for today.
Put your money in income producing properties.
This is one multi-millionaire who would have been able to ride this economic storm well had he also been a landlord.
(Folks, I can think of worst things that can happen to you besides landlording. If you know what you’re doing, you can master it just like you master anything else).