Travelling from “Failureville” to Success City

Imagine investing a nest egg of $100,000 in real estate – and losing it all.

That’s the situation Scott Taylor faced when he joined GDREIA in 2010. He shared details of his journey from failure to success during a recent presentation at GDREIA.

Not every real estate investment works out, as Scott discovered. When two of his properties turned into money-losing problems, his best option was to walk away. He “hired a shark” to sell two other failing real estate investments.

With his investment plans falling apart, Scott resolved to deal with $100,000 in debt. But how? Bankruptcy was an option, but Scott regarded bankruptcy as “the easy way out.”

Instead, he signed up with a debt consolidation company – which negotiated discounted payoffs for his various loans. Scott’s obligation was to make one payment to the company each month.

 This arrangement worked pretty well, Scott said, until it didn’t. When he began working at a lower-paying job, he could no longer afford the monthly payment – and that derailed everything.

 That’s when Scott took control of negotiation and payments himself. Having come to the belief that he should not “let the sharks set the rules,” Scott began his talks with lenders. Those that would work with him on repayment plans, he paid in full. Lenders that punished him with jacked-up interest rates and abrasive collection strategies he paid less – sometimes getting them to agree to fifty cents on the dollar.

 Soon, Scott reached a great insight while playing the Rich Dad Cash Flow Game with fellow GDREIA members. The game included a form to tally assets and debts – which he discovered was a useful way to track personal financial trends each month. Soon, he was hooked – using the form to keep track of his personal finances throughout the year.

 The insights from this monthly exercise led Scott to pay his bills in cash. He also pursued further financial education to find strategies to use his money wisely.

 By 2014, Scott’s careful money management allowed him to pay off his debts – and begin investing for the future. He continues to track his financial health each month, and has gained nearly $170,000 in net worth over the past six years.

Scott’s advice to everyone who faces too much debt:

 -- Spend less than you earn

-- Follow a monthly budget

-- Track income, assets and liabilities each month with a financial statement

-- Spend time with successful people – become active and network as a volunteer for GDREIA

 It’s a plan that works. Just ask Scott Taylor.