Real Men of Genius: Mortgage Broker Mike Railey

[davelj]

From Today’s Union-Fibune:

[You can’t make this stuff up.]

For Mike Railey, 44, hope outweighed fear as he closed escrow early this month on a $1.4 million, 1,500-square-foot penthouse at The Legend, Bosa Development’s 180-unit condo tower next to Petco Park.

He and his wife, Denise, and their two sons, Dillon, 16, and Baylen, 11, live in a modest home in Del Mar that carries a negative-amortization loan. As a mortgage broker, Railey knows the risks of a loan on which the balance grows if you don’t pay enough per month.

“I’m scared right now; I’m struggling a bit,” he said.

Denise Railey and her son Baylen checked out their new downtown penthouse at The Legend, overlooking Petco Park. The family lives in Del Mar and hopes to rent out the condo to cover the $6,100 monthly carrying costs.

And now the family faces an additional $6,100 monthly payment for the mortgage, taxes and homeowner fees for the downtown unit with a breathtaking view of San Diego Bay. He briefly considered backing out of the purchase until Bosa told him he could risk losing his 15 percent down payment.

“I’ve done good in San Diego,” he said. “I barely make enough to survive, but with my real estate I can hang in there.”

He hopes to lease the unit out for the time being and bank on an invention he’s marketing – a motorized surfboard – to boost his earnings and stabilize his future.

“That gives me a little confidence,” he said.

[The man is betting his family’s future on a motorized surfboard… and where will his kids be going to school while living downtown? He works in an industry that’s in a death spiral, “barely makes enough to survive…” but it’s definitely time to buy a $1.4 million condo. Only in California. This should turn out well.]

[Allan from Fallbrook]

Wow. I realize I should have some pithy, or topical comment, but all I can come up with is: Wow.

“This should turn out well”. Yeah, huh?

$12,200 per month in carrying costs! If this guy is struggling now, wait till the full effect of his new monthly burn rate hits.

I hear those Bosa developments are also in the firing line as far as pending latent defect/construction defect lawsuits go as well.

Greed and stupidity are a lethal combination.

[Allan from Fallbrook]

Wow. I realize I should have some pithy, or topical comment, but all I can come up with is: Wow.

“This should turn out well”. Yeah, huh?

$12,200 per month in carrying costs! If this guy is struggling now, wait till the full effect of his new monthly burn rate hits.

I hear those Bosa developments are also in the firing line as far as pending latent defect/construction defect lawsuits go as well.

Greed and stupidity are a lethal combination.

[Coronita]

Reminds me of my 6th grade honors math teacher. The ones that spends more time surfing then educating, and prove through their own dumb*ss actions, they can't count worth sh*t. Uh, find me someone that's willing to pay $6100/month for rent…I got a bridge to sell them.

 

"Surf's up, dude"…Doh…

 

Where are the Hummer and BMW jokes? 

[Coronita]

Reminds me of my 6th grade honors math teacher. The ones that spends more time surfing then educating, and prove through their own dumb*ss actions, they can't count worth sh*t. Uh, find me someone that's willing to pay $6100/month for rent…I got a bridge to sell them.

 

"Surf's up, dude"…Doh…

 

Where are the Hummer and BMW jokes? 

[mixxalot]

Guess they can always live in the Hummer and surf each day and rent out both overpriced real estate properties.

I betcha thats the dude’s next move- live in the Hummer, surf and rent out both properties or face foreclosure.

[mixxalot]

Guess they can always live in the Hummer and surf each day and rent out both overpriced real estate properties.

I betcha thats the dude’s next move- live in the Hummer, surf and rent out both properties or face foreclosure.

[cr]

San Diego might be the last place someone would want one of these.

[cr]

San Diego might be the last place someone would want one of these.

[patientlywaiting]

Here’s the full article.
I’m waiting for ocrenter to do a feature story on this mortgage broker. Let’s follow up on this guy 2 years from now.

http://www.signonsandiego.com/news/business/20071021-9999-lz1h21build.html

[patientlywaiting]

Here’s the full article.
I’m waiting for ocrenter to do a feature story on this mortgage broker. Let’s follow up on this guy 2 years from now.

http://www.signonsandiego.com/news/business/20071021-9999-lz1h21build.html

[djrobsd]

This is my favorite part of the article here:

“Long-term, if you look at the San Diego marketplace, if consumers are waiting for the bubble to outright burst, this is a very controlled, stable market,” he said.

When are these morons going to stop denying the realities of this market?

[djrobsd]

This is my favorite part of the article here:

“Long-term, if you look at the San Diego marketplace, if consumers are waiting for the bubble to outright burst, this is a very controlled, stable market,” he said.

When are these morons going to stop denying the realities of this market?

[PorkmanDelardo]

I too had to do a double take when I read this article in the crappy UT this morning. If I can afford $6,100 a month to rent out an over-priced condo, why would I cover someone else’s mortgage payment? I would go out and make payments on my own place, and get the tax deduction to boot. This guy Mike Railey is a class A moron. Please, please someone track this guys progress and let us know when foreclosure proceedings start on either his crown jewel condo or his modest hovel in Del Mar. Porkman

[PorkmanDelardo]

I too had to do a double take when I read this article in the crappy UT this morning. If I can afford $6,100 a month to rent out an over-priced condo, why would I cover someone else’s mortgage payment? I would go out and make payments on my own place, and get the tax deduction to boot. This guy Mike Railey is a class A moron. Please, please someone track this guys progress and let us know when foreclosure proceedings start on either his crown jewel condo or his modest hovel in Del Mar. Porkman

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