NO PENSION
How did Mr. Peso, who lives in Katy, TX, wind up owning two abandoned homes 1,342.2 miles away in Cleveland, OH? Mr. Peso lawfully immigrated from Mexico and started a family in Texas many decades ago. He worked as a laborer in a local meat packing facility for 37 years. He never missed a day of work.
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As his kids grew older and realized their dream of attending college, Mr. Herrera did all he could to support them financially. It costed him most of his savings. However, all was not lost. After all, Mr. Herrera had his pension to rely on in his golden years. Or, at least that is what he thought. Little did he know that after 37 years of paying into what he thought was a guaranteed pension, his money was really being deposited into a 401(k) plan that was declared insolvent when his employer was acquired and, the next day, filed a Chapter 11 bankruptcy.
With the promise of guaranteed rent from the local housing authority, Mr. Peso invested much of his remaining savings into two real estate deals in Cleveland with the help of a local "expert". Mr. Peso learned a hard lesson that many real estate investors learn far too late when they invest in Ohio real estate: The state of Ohio was one of the few remaining states that did not license property managers. Mr. Peso sent the required investment funds to Cleveland, and never saw those funds again. The "property manager" kept the rents for over a year, disappeared, and left the properties vacant and destroyed. Under Ohio law, Mr. Peso can be fined or jailed.
