This Is How Investors Go Broke

Описание: This segment breaks down how investors quietly lose money by misunderstanding private and hard money lending. In this conversation, we dig into what really separates strong lenders from risky ones, why speed and “easy approvals” can be dangerous, and how thin margins, bad assumptions, and market shifts can wipe out profits fast. This episode is all about understanding how money actually works, protecting your downside, and knowing when a deal isn’t worth chasing—no matter how good it looks on paper.

EPISODE HIGHLIGHTS:

*Why private and hard money lending is the “wild west”—and what investors must understand before taking terms
*The key difference between balance-sheet lenders and lenders who resell debt
*How speed to close can be a competitive advantage only when capital is truly available
*Why lenders who approve every deal aren’t doing investors any favors
*How tight margins, holding costs, and rehab overruns quietly turn 10% profits into break-even deals
*The danger of assuming great finishes can beat neighborhood comps
*Why flippers and BRRRR investors still need strong margins—even if cash flow is the end goal
*How experienced lenders stress-test deals for worst-case scenarios
*Why market timing and “luck” aren’t the same as good underwriting
*What it really means when a lender says “no”—and why that can save your capital

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The Circle's Founder (Ryan Rominger) and Director of Operations (Stuart Smith) discuss what’s happening in the world of Real Estate Investing, Property Management, and running a small business based in Indianapolis. The show focuses on the Central Indiana real estate market, but also explores beyond the Hoosier state to gain intriguing insights in the world of business and real estate investing. We interview our favorite influential people from across Central Indiana (and beyond) to learn from the people having the biggest impact on our market.

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