A couple years ago, Wade Timmerson was the master of the house-selling business. A self-proclaimed "real estate guru," according to reports from KDKA Pittsburgh, he had been fascinated by the world of house buying and selling since his early twenties. At his peak, Timmerson regularly bought inexpensive houses to fix up, sold them for decent profits, presided over several rental properties, and even wrote a book of advice for those interested in the real estate business.
In less than 10 years, his company made more than 1,500 real estate transactions. But when the housing bubble burst, his situation changed.
The one-time guru found himself with no choice but to declare bankruptcy, sources say. A few renters missed payments, he couldn't afford his mortgages, and just like that, Timmerson's "empire" crumbled.
Properties he once bought and fixed up are now reportedly vacant, falling into disrepair, or housing drug addicts and street-dwellers. Not such a good situation for the neighbors.
One of the most notable aspects of Timmerson's story is how he managed to fail so spectacularly in so short a time. Not surprisingly, he reportedly considers the credit industry partially to blame. At 29, Timmerson had been in the real estate business only two years when he was approved for a loan totaling $1.2 million-with no money down.
On top of this loan, Timmerson claims that he was a bit naive about the whole business-his limited experience translated to a patchy understanding of the market's cycles, which, according to KDKA news, caused him to be over-confident.
As a result, the article explains, Timmerson let his business grow too fast and spread itself too thin, certain that bankruptcy would never happen to him. In short, Timmerson's story is a sort of microcosm for the current situation across the country.
Many Americans are finding themselves with unaffordable mortgage payments from their ARMs, and foreclosures across the country are reaching epic proportions.
Sources indicate that Timmerson's business is now emerging from bankruptcy, slowly rebuilding its real estate practice-"slowly," of course being the most important word. Timmerson has reportedly claimed that he's learned the hard way from his mistakes, and is happy to follow the "American way," the way of second chances.
Lately, the American way has also been the way of readily-available credit, rising mortgage payments, high interest rates, and bankruptcy and foreclosure worries. With an attitude like the one demonstrated by Timmerson, though-a willingness to learn from mistakes and start over with caution-the American second chance may prove invaluable.