Real Estate Rookie podcast episode 449 feedback

Flipper/Rehabber · Lake Geneva, WI · Member since 2016 · 39 posts · 27 votes

Just listened to episode 449 of the Real Estate Rookie podcast with Diem Martin. Her story of success is inspiring and she has certainly sacrificed in building her current portfolio. I am bothered by the casual nature in which Diem speaks about her bankruptcy in that it seems to be one of convenience rather than necessity. I have every empathy for folks who are hurting especially from instances that are from outside of their control, but filing bankruptcy to get out of debt that she chose to sign up for and promise to pay for the sole purpose of getting ahead faster (her story, not mine) seems less than ethical and Bigger Pockets promoting it is questionable.

1 Reply

25 views

Most Popular Reply

Nathan GesnerBusiness Member

Moderator

Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Quote from @David Butler:

I haven't heard the whole story, so maybe there's more to it? I know Scott Trench preaches financial responsibility and wouldn't promote it. BP is a growing company with a lot of different viewpoints, so maybe it's not even on his radar.

The DIY Landlord Book4.7248 Reviews

Website View Page

1 Reply

See this reply in the discussion

6 Replies

Jump to latestLatest

Sort by

Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Quote from @David Butler:

I wouldn't endorse such a view, but some people see nothing wrong with it as long as they operate within the boundaries of what is legal.
The DIY Landlord Book4.7248 Reviews
Website View Page
0 Reply
David ButlerPro Member
OP
Flipper/Rehabber · Lake Geneva, WI · Member since 2016 · 39 posts · 27 votes
2y
Quote from @Nathan Gesner:

Quote from @David Butler:

Not suggesting that it isn't illegal (to each their own)--sure sounded questionably moral in listening to the episode. My comment was more to BP for giving a forum to this view. I wouldn't think BP would want to promote anything even approaching the question of morality.
I wouldn't endorse such a view, but some people see nothing wrong with it as long as they operate within the boundaries of what is legal.

0 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Quote from @David Butler:

I haven't heard the whole story, so maybe there's more to it? I know Scott Trench preaches financial responsibility and wouldn't promote it. BP is a growing company with a lot of different viewpoints, so maybe it's not even on his radar.
The DIY Landlord Book4.7248 Reviews
Website View Page
1 Reply
Jason B.Pro Member
Rental Property Investor · Boise, ID · Member since 2017 · 228 posts · 180 votes
2y
@David Butler I listened to the episode and I didn’t get that impression at all. The impression that I got is a pragmatic explanation of the situation.
Her “casual demeanor” seemed to me as her simply recalling the details of the situation. No one knows but her what she was really feeling in the moment and if she was seriously distressed at that time, her recounting that would have served no purpose on the podcast. The reality is, it’s actually quite difficult to declare bankruptcy (just cause you want to declare bankruptcy doesn’t mean you get to, you have to be approved for it. Look up the situation the rapper Killer Mike went through when he attempted and was denied…it’s crazy he didn’t get approved cause his situation was BAD) so the fact that she was able to successfully do it meant that she was in serious, dire straits. From her explanation, it sounds like she looked at her overall situation and declaring bankruptcy was her best course of action. It wouldn’t make sense for someone to say, “well this is the best choice I can make in the moment so I’m gonna make this other one instead”.
0 Reply
David ButlerPro Member
OP
Flipper/Rehabber · Lake Geneva, WI · Member since 2016 · 39 posts · 27 votes
2y
@Jason B. Everyone is entitled to their opinion so I appreciate yours even if I disagree. "Simply recalling the details" included statements about having the money to purchase 2 years later and never could have had that if she had to pay off debt. That is recalling the details AND slightly callous in my opinion and if Diem was in the role of creditor, I doubt she would have been excited about how things played out. Again, my post is less about the guest and much more about why BP would even get in the radius of this and open themselves up to criticism. I can totally see how a rookie, in the name of the podcast, could hear this and determine that defaulting is clearing the slate, offering an opportunity to save and start over in 2 years. I don't believe that is the message we should be sharing.
1 Reply
Jason B.Pro Member
Rental Property Investor · Boise, ID · Member since 2017 · 228 posts · 180 votes
2y
@David Butler I appreciate the respectful disagreement, and I can see where your point of view is coming from.
However, as you mentioned
her “included statements about having the money to purchase 2 years later and never could have had that if she had to pay off the debt”, there’s no way when she filed for bankruptcy she could have possibly known how much or how little of her debt would be discharged (they don’t always allow all of it to be discharged) and that she would be able to start saving so quickly. Another way she could have phrased things is ‘I realized I had to file bankruptcy, and I caught a huge break because it turned out that all my debt was forgiven, allowing me to begin saving and get on a better track earlier than I anticipated. I would’ve never expected that and I was very lucky’.
I get that it’s not about her specifically and I agree on that. I’m just trying to point out that you heard it and interpreted it as presenting a less than ethical message about bankruptcy and BP should be more cognizant of that. My point of view is that I listened to the same thing and never heard anything remotely shady or ethically questionable.
However, I think it's good you said your point of view because any perspective to try to do the right thing is a great thing, and all of us are stewards of REI at large and have a responsibility to present it in the most professional and ethical manner.
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.