Erich spent over a decade chasing his dream of owning his own Real Estate Investment Trust. But that dream hit a snag when he and his wife, April, tried to “flip” a piece of property in Sarasota, Florida as the first step toward creating a REIT. The flip didn’t work and Erich started a downward spiral of debt that has left him and his family more than $2 million in the hole.

Over half of a million of that debt is in loans Erich took out from his own family members, so even bankruptcy isn’t an option. Add that to tens of thousands in credit card debt, a ballooning mortgage and a remaining Small Business Administration loan, and Erich and April’s stress seems to be piling up just as fast as the bills.

Erich realizes he put the financial future of his family at risk. Now he’s looking to mitigate a full-blown crisis and find a solution that will allow him to fulfill his dream so his young children can grow up without worrying about owing money at every turn.

   Stop borrowing from friends and family.
   Consider a short sale.
   Cut down housing costs.
   Diversify.

Erich and April have to work on improving their credit scores. Right now our Money Mentors found they have more than $50K in credit card debts and 8 accounts are passed due. They need to try to do a "Short Sale" on their home in Florida. Erich and April financed their dream by taking out loans from friends and family - they has to stop. They are currently living in an expensive condo which our Money Mentors have said, they need to downsize and find a less expensive home to live in. And as they move forward, they need to diversify their investments rather than put all their eggs in one basket.