Bye-bye Kip Schoning

Bennet Hall’s got another story on this in the GT:

Kip Schoning’s red door rental empire is showing signs of crumbling — and many of his tenants are getting dragged down with it.

So far this year, Schoning and his wife, Michelle, have defaulted on 79 properties in Linn, Benton, Marion and Polk counties, according to records on file with the county clerks’ offices.

While the Schonings have managed to redeem some of those properties, 19 have been foreclosed by the lender or sold to satisfy the debt, while another 43 remain in default and could face the same fate, the records show.

I can’t say I’m terribly surprised – though I do wonder where all the money has gone.  I’m somewhat pleased, however, that the red-door empire does seem to be crumbling even if there is going to be a lot of short-term pain on the part of a lot of people.  Hopefully when Schoning is gone overall conditions improve.

I am surprised at where Bennet Hall found the time to do all the legwork for a story like this.  Kudos to him.

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One Comment on “Bye-bye Kip Schoning”

  1. rh Says:

    Simple. If I finance everything with no money down, I will have large mortgage payments. If I can rent it out for more than my mortgage costs, I can come out ahead. But that is hard to do. Any little thing goes wrong, and my cashflow could be negative for the month. As long as the value goes up on my properties, I can keep borrowing against them. He is now finding out what happens when the market goes the other direction. He probably can’t get loans, he can’t sell the houses for what he may have purchased them for, the occupancy rates may have dropped, etc. I understand his lifestyle isn’t the most frugal, either. So the pile of cards start to crumble. I had heard his goal was to let the banks foreclose on the houses and he was going to attempt to buy them from the banks at a huge discount after they were foreclosed. Hopefully the banks are onto him.

    Not to mention the karma coming back to bite him in the butt.

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