Ep 58: Investment Series: The Dark Side of Investing
Inside the Lion's Den: A Business and Leadership Podcast
English - August 25, 2021 08:00 - 24 minutes - 34.6 MB - ★★★★★ - 78 ratingsManagement Business Entrepreneurship business finances leadership operations Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
These days, social and mainstream media are chock full of stories about amazing stock market and investment gains. Don't buy into the hype. People love to share their stories when it comes to success and making money, but you don't see many of them talking about their business failures. Today I'll give you an update on the current volatile market we're experiencing and the factors that are making it look so good. I'll also share some of my recent investment horror stories and the lessons that they've taught me.
What do you do when your investment isn't making any returns? How can you get your money out of a business that can't pay it's lenders? Why is putting a higher leverage on your asset a risky move? I'll talk about all of these issues, along with frustration, late payments, and bad feelings. Today we're talking about the things that go wrong. We're talking about The Dark Side of Investing.
In this episode, we'll cover:
- The difference between realized and unrealized gains
- What bankruptcy looks like for a business
- Giving up your payment priority as a lender in order to save the overall investment
- How deals that feel bad and cause you stress can look great on paper
- Understanding the debt service coverage issues present in real estate deals
- Considering the personal costs of investments that go off the rails
SHOW NOTES: https://insidethelionsdenpodcast.com/podcast/episode58