Deacon Hayes – Nearly Lost it All Buying Two Condos

Deacon Hayes is the founder of WellKeptWallet.com, which reaches over 1,000,000 people per month. He has been a contributor for the US News & World Report, Investopedia, Clark Howard and more. He is also the author of the book, You Can Retire Early! Everything You Need to Achieve Financial Independence When You Want It.   “Opportunities are like buses, there’s always another one coming.” Deacon Hayes   My Worst Investment Ever Life before the devastating investment Hayes lived and worked in Phoenix, Arizona before his big fall and his subsequent rise from the ashes. Like most Americans, he had his fair share of debt but had so far managed to find a balance with his income. However, he loved his job and his life and lived by his philosophy of following his passions. Until he came across the opportunity that changed his whole life. Real estate fad covers country in early 2000s The early 2000s were times of great financial stability. It was a time of prosperity and growth in the world of finance with all markets from the stock market to currency exchange achieving record highs. The real estate market, in particular, was doing really well, with that being described as the age of the real estate boom. With emotions running high, Hayes decided to take a risk on the market. Investing for him meant the possibility of having a debt-free life, and it was too good an opportunity to pass. So having done his homework he decided to buy not one but two condos. Investor gives in to ARM loans’ allure The first mistake that Hayes made was taking a huge risk on multiple investments without being fully informed about the real estate market. He had a payment option ARM (adjustable rate mortgage) plan. In a nutshell, this would allow him to make a small minimum investment with variable interests which seemed like a good idea. In retrospect, giving in to this allure is the worst mistake he made given how much he ended up losing. Financial crisis begins in 2007, put all his net worth at risk Between 2007 and 2008, half of the U.S. suffered the worst market crash in real estate history. For a number of reasons, property values...