Home › Forums › Housing › Nine houses lost, investor reflects on ‘stumbles’: California man speculated with ‘neg-am’ loans, now says it was mistake
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May 12, 2008 at 2:57 AM #12705May 12, 2008 at 9:41 AM #202608CoronitaParticipant
Four years later, using $800,000 in stock options, he began snapping upinvestment properties, putting 10 percent to 40 percent down on negative amortization loans — in which payments do not cover the interest so that a borrower's balance grows over time.
With an $800k pot of stock options, he could have tucked that away and even with a pidly 5% interest, that still would have been a decent size chuck of money each year. Or in more aggressive terms, at least tucked 50% away and the remaining 50% on higher risk speculation. Apparently the person didn't learn from the .dotcom days. One word:Greed.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
May 12, 2008 at 9:41 AM #202654CoronitaParticipantFour years later, using $800,000 in stock options, he began snapping upinvestment properties, putting 10 percent to 40 percent down on negative amortization loans — in which payments do not cover the interest so that a borrower's balance grows over time.
With an $800k pot of stock options, he could have tucked that away and even with a pidly 5% interest, that still would have been a decent size chuck of money each year. Or in more aggressive terms, at least tucked 50% away and the remaining 50% on higher risk speculation. Apparently the person didn't learn from the .dotcom days. One word:Greed.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
May 12, 2008 at 9:41 AM #202681CoronitaParticipantFour years later, using $800,000 in stock options, he began snapping upinvestment properties, putting 10 percent to 40 percent down on negative amortization loans — in which payments do not cover the interest so that a borrower's balance grows over time.
With an $800k pot of stock options, he could have tucked that away and even with a pidly 5% interest, that still would have been a decent size chuck of money each year. Or in more aggressive terms, at least tucked 50% away and the remaining 50% on higher risk speculation. Apparently the person didn't learn from the .dotcom days. One word:Greed.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
May 12, 2008 at 9:41 AM #202706CoronitaParticipantFour years later, using $800,000 in stock options, he began snapping upinvestment properties, putting 10 percent to 40 percent down on negative amortization loans — in which payments do not cover the interest so that a borrower's balance grows over time.
With an $800k pot of stock options, he could have tucked that away and even with a pidly 5% interest, that still would have been a decent size chuck of money each year. Or in more aggressive terms, at least tucked 50% away and the remaining 50% on higher risk speculation. Apparently the person didn't learn from the .dotcom days. One word:Greed.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
May 12, 2008 at 9:41 AM #202742CoronitaParticipantFour years later, using $800,000 in stock options, he began snapping upinvestment properties, putting 10 percent to 40 percent down on negative amortization loans — in which payments do not cover the interest so that a borrower's balance grows over time.
With an $800k pot of stock options, he could have tucked that away and even with a pidly 5% interest, that still would have been a decent size chuck of money each year. Or in more aggressive terms, at least tucked 50% away and the remaining 50% on higher risk speculation. Apparently the person didn't learn from the .dotcom days. One word:Greed.
[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]
—– Sour grapes for everyone!
May 12, 2008 at 10:17 AM #202618PadreBrianParticipantWhat a dumb-dumb. Well, at least he is young enough to start over.
But it’s idiots like these that helped fuel the flipping bubble.
May 12, 2008 at 10:17 AM #202665PadreBrianParticipantWhat a dumb-dumb. Well, at least he is young enough to start over.
But it’s idiots like these that helped fuel the flipping bubble.
May 12, 2008 at 10:17 AM #202692PadreBrianParticipantWhat a dumb-dumb. Well, at least he is young enough to start over.
But it’s idiots like these that helped fuel the flipping bubble.
May 12, 2008 at 10:17 AM #202717PadreBrianParticipantWhat a dumb-dumb. Well, at least he is young enough to start over.
But it’s idiots like these that helped fuel the flipping bubble.
May 12, 2008 at 10:17 AM #202751PadreBrianParticipantWhat a dumb-dumb. Well, at least he is young enough to start over.
But it’s idiots like these that helped fuel the flipping bubble.
May 12, 2008 at 11:22 AM #202663Ex-SDParticipantHave no fear. If “Blathering Barney Frank” and his far-left-wing cohorts have their way, this poor homeowner/speculator, will be bailed out of his predicament and all will be right with the world again. Of course, the responsible will once again, be punished and all the taxpayers will wind up paying more into a system that is becoming more socialist every year. The founding fathers are rolling over in their graves.
May 12, 2008 at 11:22 AM #202710Ex-SDParticipantHave no fear. If “Blathering Barney Frank” and his far-left-wing cohorts have their way, this poor homeowner/speculator, will be bailed out of his predicament and all will be right with the world again. Of course, the responsible will once again, be punished and all the taxpayers will wind up paying more into a system that is becoming more socialist every year. The founding fathers are rolling over in their graves.
May 12, 2008 at 11:22 AM #202735Ex-SDParticipantHave no fear. If “Blathering Barney Frank” and his far-left-wing cohorts have their way, this poor homeowner/speculator, will be bailed out of his predicament and all will be right with the world again. Of course, the responsible will once again, be punished and all the taxpayers will wind up paying more into a system that is becoming more socialist every year. The founding fathers are rolling over in their graves.
May 12, 2008 at 11:22 AM #202759Ex-SDParticipantHave no fear. If “Blathering Barney Frank” and his far-left-wing cohorts have their way, this poor homeowner/speculator, will be bailed out of his predicament and all will be right with the world again. Of course, the responsible will once again, be punished and all the taxpayers will wind up paying more into a system that is becoming more socialist every year. The founding fathers are rolling over in their graves.
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