70 Properties, Private Money, and a Mental Breakdown: The Truth About Scaling Real Estate
Recorded: February 2026
Host: Erwin Szeto, The Truth About Real Estate Investing for Canadians Podcast
Guest: Rosna Arora
It is the dream sold on every real estate stage: scale fast, use private money, and build a massive empire.
But what happens when the market stops cooperating? What happens when the music stops and you are dangerously over-leveraged?
This week on The Truth About Real Estate Investing for Canadians, I sit down with my friend Rasna Arora. Rasna built an incredible $50 million real estate portfolio consisting of 70 properties. She came from the same real estate investment network I did (led by Don Campbell), hired one of the most expensive coaches in Canada, and even became a coach herself at Blackheart University.
But her aggressive scaling relied heavily on private, hard money loans.
The Perfect Storm
When COVID hit, the dominoes started to fall. Renovations stalled, material and labor costs skyrocketed, and refinances completely froze. Meanwhile, the renewal fees on her private loans began stacking up.
In the middle of this crisis, Rasna’s mortgage advisor told her to just borrow more hard money loans to survive. (Food for thought: that same mortgage professional, Claire Drege, is now personally and professionally bankrupt and has been handed a lifetime ban from the mortgage and securities industries).
Rasna received terrible advice from a professional she trusted. But instead of digging a deeper hole and trapping more private lenders, she made a different choice—one that ultimately cost her everything.
A Lesson in Integrity and Leverage I will warn you right now: there is no fairytale ending to this episode.
This is not a show about Lamborghinis and hype; this is an honest, raw conversation about the dark side of real estate investing. It is a masterclass in integrity, morals, and ethics, and a deep dive into the severe mental health breakdown that can happen when scaling with over-leverage goes wrong.
3 Key Takeaways from This Episode:
- The Danger of Hard Money: Private money is a tool, but when it is used excessively to scale without proper cash flow or viable exit strategies, it becomes a trap.
- The Mental Toll: Real estate is a business with real consequences. Carrying a $50M over-leveraged portfolio while facing a market freeze takes a massive toll on your mental health.
- Cash Flow over Ego: I live by the quote from Winston Churchill: “Those who fail to learn from history are doomed to repeat it”. During the 2007-2008 financial crisis, leverage is what killed developers. This is exactly why I have always focused on “boring,” positive cash flow when discussing investments.
If you invest in real estate—and especially if you use private hard money loans—you need to hear this episode.
🎧 Listen to the full episode here
Disclaimer: This story is shared for educational purposes. I am not an accountant or a financial advisor. Please seek qualified professional advice for your specific situation.
🎧 Listen to the full episode here
10 Real Estate, Leverage, and Hard Money Questions Answered in This Episode
1. What is “hard money” in real estate investing?
Veteran real estate investors use the term “hard money loans” to refer to private money borrowing. While private money can help investors scale a portfolio quickly, it becomes incredibly dangerous if the market shifts or projects stall.
2. What are the risks of using private money to scale a portfolio?
If market conditions change, you can get trapped. In Rasna’s case, when refinances froze and renovations stalled, the renewal fees on her private loans aggressively stacked up, leaving her dangerously over-leveraged.
3. How did the COVID-19 pandemic impact real estate renovation projects?
The pandemic created a perfect storm for active investors doing the BRRRR strategy by causing renovations to stall, material and labor prices to skyrocket, and refinancing options to completely freeze.
4. What is the mental health impact of an over-leveraged real estate business?
Holding a massive portfolio of 70 properties during a market freeze takes an immense mental toll, often leading to severe stress and mental health breakdowns. Real estate has a human cost when scaling goes wrong.
5. Can mortgage professionals be punished for giving harmful advice?
Yes. Erwin notes that Rasna’s former mortgage advisor, Claire Drege, faced severe consequences for her actions, including personal and professional bankruptcy, as well as a lifetime ban from the mortgage and securities industries.
6. Should you borrow more hard money to cover existing debt?
Generally, no. Rasna was advised by a trusted professional to take out more hard money loans just to survive her cash crunch, which is a dangerous strategy that often digs a deeper hole instead of solving the fundamental cash flow issue.
7. Does hiring an expensive real estate coach guarantee success?
No. Rasna came from a top real estate investment network, hired one of the most expensive coaches in Canada, and was even a coach herself at Blackheart University. Her story proves that even highly educated investors can lose everything if they rely on dangerous levels of leverage.
8. Why do veteran investors prefer “boring” positive cash flow?
History shows that high leverage is what kills developers and investors, as seen during the 2007-2008 financial crisis. Focusing on boring, positive cash flow ensures the investment is sustainable during market downturns.
9. What historical lesson applies to today’s over-leveraged real estate market?
Erwin quotes Winston Churchill: “Those who fail to learn from history are doomed to repeat it”. Investors must remember that excessive leverage is historically responsible for massive portfolio collapses.
10. How can investors maintain a healthy work-life balance?
Real estate investing should not become a stressful “second job” of managing tenants, toilets, and renovations that takes you away from your family. Investors should seek strategies that build wealth without sacrificing their nights, weekends, and peace of mind.
Want to learn how to build wealth without the sleepless nights?
We are big proponents of work-life balance and building wealth without sacrificing your weekends or taking on a “second job” of managing tenants and toilets.
Join 10,000+ Canadian real estate investors who are already on my free newsletter to learn the latest and greatest strategies in the market. Go to www.truthaboutrealestateinvesting.ca and drop your email on the right-hand side to get on the list.
To Listen:
YouTube: https://youtu.be/C58ugy__iKA
You’ve Built Wealth. Now It’s Time to Understand It.
You’ve Built Wealth. Now It’s Time to Understand It.
After dozens of consultations, I’ve noticed the same pattern again and again: most investors have built real wealth, but they’re not confident they can retire from it. They’re sitting on $2M–$5M in property but feel cash-flow poor. They’re paying more tax than they should because everything is held in personal names. They have no liquidity, no insurance strategy, and no clear plan for what happens if something happens to them. And almost every single client tells me the same thing: “I don’t actually know what retirement looks like for us.”
Real estate builds equity, but it doesn’t automatically build freedom. Without a coordinated plan for taxes, income, protection, and exit strategy, investors often end up working harder in retirement than they did in their 30s. That’s why I created the Wealth Freedom Blueprint – a simple, practical guide to help you understand where you stand today, what gaps are costing you money, and how to turn the wealth you’ve built into a life you can actually live.
Download your free Wealth Freedom Blueprint
Final Thoughts
Whether you’re building wealth, protecting it, or preparing to transition it, you deserve a clear, tax-smart strategy that works in real life.
That’s what iWIN Wealth Planning is here for.
This is how we’re creating predictable, stress-free wealth for Canadian families…
so you can enjoy the life you’re building.
Book your Wealth Planning Call
Sponsored by… Me!
This episode isn’t sponsored—except by my wife Cherry and me. Real estate investing is our life. It’s helped us build wealth and achieve peace of mind about retirement and our children’s future.
Till next time—just do it. I believe in you.
Erwin Szeto
W: erwinszeto.com
FB: facebook.com/erwin.szeto
IG: @erwinszeto
Disclaimer
As a committed advocate for transparent and responsible investing, I want to disclose that I am an Advisor to SHARE SFR (Single Family Rental). I hold equity in the company and earn referral commissions from clients I refer.
My endorsement of their model—focusing on positive cash flow and direct ownership—is based on personal experience and belief. Still, every investor should do their own due diligence.
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