The Importance of Passive Investing

We all hate market meltdowns, and this one was bound to happen. We just didn’t know when, exactly how, or how bad things would get. But we now know the answer to the first two of these three questions. 

• When? Currently underway.
• How? See below.
• How bad? No one knows.

The purpose of this article is to explore what led up to the unfolding meltdown of what is happening now. Then, based on the 10 items I consider below, investors can draw conclusions about what may happen next and how bad this could get.  

Recently, the Wall Street Journal reported that thousands of investors lost millions of dollars in a series of multifamily deals. The article highlights a mid-level Dallas IT worker who built a 7,000-unit multifamily portfolio in just four years. Unfortunately, he lost 3,200 units to his lender in Q1, defaulting on $229 million in debt and losing a boatload of syndicated investor capital. 

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