/biz/ - Business & Finance

>>50110215
Can someone explain what happens to these guys during a market downturn? The series of events I imagine is something like
>>real estate goes down 10-40%
>>have to rent our place for less rent
>>can’t sell rental property due to losing 10-40%
>>can’t make mortgages on multiple rental properties due to less rent coming in
>>foreclose on properties

It’s that last part that’s fucking with me. What does foreclosing on $3300M even look like? Does he have to pay it back? If he files for bankruptcy is it all forgiven after the banks take the property back?
I’ve looked into what these guys do, and realistically this guy built all this wealth off of $100k max. Can he just do all this again in 7 years after it falls off his credit? Do the banks send out goons to break his kneecaps?

Why aren't you just sitting on a pile of cash and waiting for inflation to top and Fed to pivot? Just get comfy and literally do nothing for half a year. Why is everyone in such a hurry to jump in stocks and crypto?