Resolution Trust Corporation

depositors, and they needed not to have everybody kill the economy by having people lose their life savings.

And the way that the government did that is they formed something called the Resolution Trust Company, the RTC, and they took on all of these empty buildings, I'm generalizing just for purposes of expediency here, but they needed someone to take it off of their balance sheet and buy it.

People have been waiting for this exact moment to happen again for since, and it still hasn't.

Still hasn't

So we left Windsor and got here in 1990 and started buying up from the RTC.

So that's the Resolution Trust Corporation.

And it worked out pretty well.

You're going to like this, Mitch.

And he said, I'm serving you with a lawsuit.

And I was sued by the Resolution Trust Corporation of America on personal guarantees that it made on land loans on projects that I'd sold off with the underlying loan still in place through a mechanism called an all-inclusive trust deed, where I carried the paper to the builders I sold to, wrapping it around the paper that I had owed the bank.

And those banks had failed.

And as a result, I got sued by the RTC.

Yeah, I was part of that massacre as well.

It makes me feel really old telling these stories because I vividly remember guys talking about like the Resolution Trust Corp days, which were 20 years before me when I was just a young buck.

And here I am telling these stories now, which just means I'm getting old.

So after that, is that what you ended up buying? Charged off second mortgages? Yes.

People started bringing me deals.

So I was brought a 10-plex, and during the GFC I told Olivia we were gonna buy every deal possible because every book I read about, uh, the savings and loan crisis, RTC, Resolution Trust Corporation, all the investors who wrote books about that time always said, "Gus, I wish I bought more." So the only thing I knew was I was gonna buy everything I could.

It's why I went so hard during the GFC.

But this 10-plex was brought to me at a time where I had just put out the last bit of capital I had.

Then the credit that had built the boom disappeared.

The 1989 law that closed the failed savings and loans created the Resolution Trust Corporation to sell off what they had owned.

In 1991 alone, another 144 failed thrifts were handed to it.

By the end of that year, it had cut the assets it held from $351 billion to $129 billion.

the savings and loan crash in the late '80s.

When that happened, I personally know companies, churches, institutions, you know, hedge fund, whatever, here in Arizona, it went pennies on the dollar back to these financial institutions that the Resolution Trust Corporation, they call it the RTC, and they did it like, I think it was like $600 billion or million dollar, whatever.

It was, you know, drop in the bu- I think it was 600 million.

You know, it was, you know, nothing.

And so Reagan and Congress created an umbrella agency.

It was called the Resolution Trust Corporation.

And they nationalized 747 of America's savings and loans.

Assets over $400 billion.