Sharks that get eaten.

[jpinpb]

http://www.signonsandiego.com/news/business/20080323-0820-investors.html

Useless Trib “Investors rode housing boom, and now many are going bust. Wave of foreclosures hits owners who bought multiple properties”

[gn]

One of the couples in this story, Robert & Yvonne Cromer were featured in this story in 2004 (when things were still booming).

http://money.cnn.com/2004/05/12/real_estate/investment_prop/tycoon_cromer/index.htm

[gn]

One of the couples in this story, Robert & Yvonne Cromer were featured in this story in 2004 (when things were still booming).

http://money.cnn.com/2004/05/12/real_estate/investment_prop/tycoon_cromer/index.htm

[gn]

One of the couples in this story, Robert & Yvonne Cromer were featured in this story in 2004 (when things were still booming).

http://money.cnn.com/2004/05/12/real_estate/investment_prop/tycoon_cromer/index.htm

[gn]

One of the couples in this story, Robert & Yvonne Cromer were featured in this story in 2004 (when things were still booming).

http://money.cnn.com/2004/05/12/real_estate/investment_prop/tycoon_cromer/index.htm

[gn]

One of the couples in this story, Robert & Yvonne Cromer were featured in this story in 2004 (when things were still booming).

http://money.cnn.com/2004/05/12/real_estate/investment_prop/tycoon_cromer/index.htm

[jpinpb]

I know now that California is a non-recourse state, but what about the other states they bought in? Aren’t they going to be on the hook for those houses?

[Doofrat]

I remember reading this article and knew this guy was going to eat it when the bust happened. Was wondering what happened to him. This is the kind of guy the casinos love.

[gn]

This is the kind of guy the casinos love.

You are absolutely right. These types always think that the money they made is the result of their "skills", when it fact, they were just lucky. So, they never quit when they were ahead.

Typical scenario, John Doe goes to Vegas for a 3 day weekend. On the first day, he wins $5000. On the second day, he lose $5000. On the last day, he lost another $3000.

[gn]

This is the kind of guy the casinos love.

You are absolutely right. These types always think that the money they made is the result of their "skills", when it fact, they were just lucky. So, they never quit when they were ahead.

Typical scenario, John Doe goes to Vegas for a 3 day weekend. On the first day, he wins $5000. On the second day, he lose $5000. On the last day, he lost another $3000.

[gn]

This is the kind of guy the casinos love.

You are absolutely right. These types always think that the money they made is the result of their "skills", when it fact, they were just lucky. So, they never quit when they were ahead.

Typical scenario, John Doe goes to Vegas for a 3 day weekend. On the first day, he wins $5000. On the second day, he lose $5000. On the last day, he lost another $3000.

[gn]

This is the kind of guy the casinos love.

You are absolutely right. These types always think that the money they made is the result of their "skills", when it fact, they were just lucky. So, they never quit when they were ahead.

Typical scenario, John Doe goes to Vegas for a 3 day weekend. On the first day, he wins $5000. On the second day, he lose $5000. On the last day, he lost another $3000.

[gn]

This is the kind of guy the casinos love.

You are absolutely right. These types always think that the money they made is the result of their "skills", when it fact, they were just lucky. So, they never quit when they were ahead.

Typical scenario, John Doe goes to Vegas for a 3 day weekend. On the first day, he wins $5000. On the second day, he lose $5000. On the last day, he lost another $3000.

[Doofrat]

I remember reading this article and knew this guy was going to eat it when the bust happened. Was wondering what happened to him. This is the kind of guy the casinos love.

[Doofrat]

I remember reading this article and knew this guy was going to eat it when the bust happened. Was wondering what happened to him. This is the kind of guy the casinos love.

[Doofrat]

I remember reading this article and knew this guy was going to eat it when the bust happened. Was wondering what happened to him. This is the kind of guy the casinos love.

[Doofrat]

I remember reading this article and knew this guy was going to eat it when the bust happened. Was wondering what happened to him. This is the kind of guy the casinos love.

[SDEngineer]

JP: re the recourse/non-recourse state thing.

If they were like a lot of RE speculators, they may very well have done cash-out re-fi’s to cover carrying costs, pay for their standard of living, and provide seed money for further RE speculation. And, of course, these re-fi’s would have turned a non-recourse loan into a recourse loan. I suspect that they have enough recourse loans on the books to wipe them out.

[jpinpb]

SDE – That’s what I was thinking.

[NotCranky]

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who’s future didn’t look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who’s really getting hurt here are the banks and eventually the tax payers.

FLU That’s what I was thinking.

They may even squeeze out a little net worth compared to where they would have been. I am sure they have learned a lot of things that have potential to be useful now and in the future.

[donaldduckmoore]

Not an offense but the MBA from USD must be very easy to get. All they have learnt is greed. They deserve what they have. The more I read their response from the same site, the more I pissed off. They are still trying to make excuse to cover their greed. FBI should go after them and lock them up.

[jpinpb]

It’s all part of their denial. People like that can’t admit they did anything wrong. They’re victims. We should feel sorry for them. Poor them.

Anyone who overextends themselves like that gets just what they deserve.

[jpinpb]

It’s all part of their denial. People like that can’t admit they did anything wrong. They’re victims. We should feel sorry for them. Poor them.

Anyone who overextends themselves like that gets just what they deserve.

[jpinpb]

It’s all part of their denial. People like that can’t admit they did anything wrong. They’re victims. We should feel sorry for them. Poor them.

Anyone who overextends themselves like that gets just what they deserve.

[jpinpb]

It’s all part of their denial. People like that can’t admit they did anything wrong. They’re victims. We should feel sorry for them. Poor them.

Anyone who overextends themselves like that gets just what they deserve.

[jpinpb]

It’s all part of their denial. People like that can’t admit they did anything wrong. They’re victims. We should feel sorry for them. Poor them.

Anyone who overextends themselves like that gets just what they deserve.

[evolusd]

donaldduckmoore – don’t knock USD on this one. I’m a USD alum and most I know are very smart people and contribute significantly to the San Diego business community – this guy is the exception.

I’m with most of you Piggs…I don’t feel one bit of sympathy for these folks. They’re biggest mistake was not realizing there was a bubble and selling everything in late 2005 early 2006. I have friends who did and laughed all the way to the bank.

[evolusd]

Also…I HIGHLY DOUBT they were advising their clients not to buy in 2007 as he said in the UT comments. You really think they’d be turning away commissions when they’re losing their own properties left and right?

[jpinpb]

evo – “Also…I HIGHLY DOUBT they were advising their clients not to buy in 2007 as he said in the UT comments. You really think they’d be turning away commissions when they’re losing their own properties left and right?”

He DID have a business degree, right? Makes perfect sense to turn away business, along w/all the business decisions he made.

[jpinpb]

evo – “Also…I HIGHLY DOUBT they were advising their clients not to buy in 2007 as he said in the UT comments. You really think they’d be turning away commissions when they’re losing their own properties left and right?”

He DID have a business degree, right? Makes perfect sense to turn away business, along w/all the business decisions he made.

[jpinpb]

evo – “Also…I HIGHLY DOUBT they were advising their clients not to buy in 2007 as he said in the UT comments. You really think they’d be turning away commissions when they’re losing their own properties left and right?”

He DID have a business degree, right? Makes perfect sense to turn away business, along w/all the business decisions he made.

[jpinpb]

evo – “Also…I HIGHLY DOUBT they were advising their clients not to buy in 2007 as he said in the UT comments. You really think they’d be turning away commissions when they’re losing their own properties left and right?”

He DID have a business degree, right? Makes perfect sense to turn away business, along w/all the business decisions he made.

[jpinpb]

evo – “Also…I HIGHLY DOUBT they were advising their clients not to buy in 2007 as he said in the UT comments. You really think they’d be turning away commissions when they’re losing their own properties left and right?”

He DID have a business degree, right? Makes perfect sense to turn away business, along w/all the business decisions he made.

[evolusd]

Also…I HIGHLY DOUBT they were advising their clients not to buy in 2007 as he said in the UT comments. You really think they’d be turning away commissions when they’re losing their own properties left and right?

[evolusd]

Also…I HIGHLY DOUBT they were advising their clients not to buy in 2007 as he said in the UT comments. You really think they’d be turning away commissions when they’re losing their own properties left and right?

[evolusd]

Also…I HIGHLY DOUBT they were advising their clients not to buy in 2007 as he said in the UT comments. You really think they’d be turning away commissions when they’re losing their own properties left and right?

[evolusd]

Also…I HIGHLY DOUBT they were advising their clients not to buy in 2007 as he said in the UT comments. You really think they’d be turning away commissions when they’re losing their own properties left and right?

[evolusd]

donaldduckmoore – don’t knock USD on this one. I’m a USD alum and most I know are very smart people and contribute significantly to the San Diego business community – this guy is the exception.

I’m with most of you Piggs…I don’t feel one bit of sympathy for these folks. They’re biggest mistake was not realizing there was a bubble and selling everything in late 2005 early 2006. I have friends who did and laughed all the way to the bank.

[evolusd]

donaldduckmoore – don’t knock USD on this one. I’m a USD alum and most I know are very smart people and contribute significantly to the San Diego business community – this guy is the exception.

I’m with most of you Piggs…I don’t feel one bit of sympathy for these folks. They’re biggest mistake was not realizing there was a bubble and selling everything in late 2005 early 2006. I have friends who did and laughed all the way to the bank.

[evolusd]

donaldduckmoore – don’t knock USD on this one. I’m a USD alum and most I know are very smart people and contribute significantly to the San Diego business community – this guy is the exception.

I’m with most of you Piggs…I don’t feel one bit of sympathy for these folks. They’re biggest mistake was not realizing there was a bubble and selling everything in late 2005 early 2006. I have friends who did and laughed all the way to the bank.

[evolusd]

donaldduckmoore – don’t knock USD on this one. I’m a USD alum and most I know are very smart people and contribute significantly to the San Diego business community – this guy is the exception.

I’m with most of you Piggs…I don’t feel one bit of sympathy for these folks. They’re biggest mistake was not realizing there was a bubble and selling everything in late 2005 early 2006. I have friends who did and laughed all the way to the bank.

[donaldduckmoore]

Not an offense but the MBA from USD must be very easy to get. All they have learnt is greed. They deserve what they have. The more I read their response from the same site, the more I pissed off. They are still trying to make excuse to cover their greed. FBI should go after them and lock them up.

[donaldduckmoore]

Not an offense but the MBA from USD must be very easy to get. All they have learnt is greed. They deserve what they have. The more I read their response from the same site, the more I pissed off. They are still trying to make excuse to cover their greed. FBI should go after them and lock them up.

[donaldduckmoore]

Not an offense but the MBA from USD must be very easy to get. All they have learnt is greed. They deserve what they have. The more I read their response from the same site, the more I pissed off. They are still trying to make excuse to cover their greed. FBI should go after them and lock them up.

[donaldduckmoore]

Not an offense but the MBA from USD must be very easy to get. All they have learnt is greed. They deserve what they have. The more I read their response from the same site, the more I pissed off. They are still trying to make excuse to cover their greed. FBI should go after them and lock them up.

[NotCranky]

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who’s future didn’t look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who’s really getting hurt here are the banks and eventually the tax payers.

FLU That’s what I was thinking.

They may even squeeze out a little net worth compared to where they would have been. I am sure they have learned a lot of things that have potential to be useful now and in the future.

[NotCranky]

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who’s future didn’t look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who’s really getting hurt here are the banks and eventually the tax payers.

FLU That’s what I was thinking.

They may even squeeze out a little net worth compared to where they would have been. I am sure they have learned a lot of things that have potential to be useful now and in the future.

[NotCranky]

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who’s future didn’t look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who’s really getting hurt here are the banks and eventually the tax payers.

FLU That’s what I was thinking.

They may even squeeze out a little net worth compared to where they would have been. I am sure they have learned a lot of things that have potential to be useful now and in the future.

[NotCranky]

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who’s future didn’t look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who’s really getting hurt here are the banks and eventually the tax payers.

FLU That’s what I was thinking.

They may even squeeze out a little net worth compared to where they would have been. I am sure they have learned a lot of things that have potential to be useful now and in the future.

[jpinpb]

SDE – That’s what I was thinking.

[jpinpb]

SDE – That’s what I was thinking.

[jpinpb]

SDE – That’s what I was thinking.

[jpinpb]

SDE – That’s what I was thinking.

[SDEngineer]

JP: re the recourse/non-recourse state thing.

If they were like a lot of RE speculators, they may very well have done cash-out re-fi’s to cover carrying costs, pay for their standard of living, and provide seed money for further RE speculation. And, of course, these re-fi’s would have turned a non-recourse loan into a recourse loan. I suspect that they have enough recourse loans on the books to wipe them out.

[SDEngineer]

JP: re the recourse/non-recourse state thing.

If they were like a lot of RE speculators, they may very well have done cash-out re-fi’s to cover carrying costs, pay for their standard of living, and provide seed money for further RE speculation. And, of course, these re-fi’s would have turned a non-recourse loan into a recourse loan. I suspect that they have enough recourse loans on the books to wipe them out.

[SDEngineer]

JP: re the recourse/non-recourse state thing.

If they were like a lot of RE speculators, they may very well have done cash-out re-fi’s to cover carrying costs, pay for their standard of living, and provide seed money for further RE speculation. And, of course, these re-fi’s would have turned a non-recourse loan into a recourse loan. I suspect that they have enough recourse loans on the books to wipe them out.

[SDEngineer]

JP: re the recourse/non-recourse state thing.

If they were like a lot of RE speculators, they may very well have done cash-out re-fi’s to cover carrying costs, pay for their standard of living, and provide seed money for further RE speculation. And, of course, these re-fi’s would have turned a non-recourse loan into a recourse loan. I suspect that they have enough recourse loans on the books to wipe them out.

[jpinpb]

I know now that California is a non-recourse state, but what about the other states they bought in? Aren’t they going to be on the hook for those houses?

[jpinpb]

I know now that California is a non-recourse state, but what about the other states they bought in? Aren’t they going to be on the hook for those houses?

[jpinpb]

I know now that California is a non-recourse state, but what about the other states they bought in? Aren’t they going to be on the hook for those houses?

[jpinpb]

I know now that California is a non-recourse state, but what about the other states they bought in? Aren’t they going to be on the hook for those houses?

[DWCAP]

gn, you forgot something. When he goes back home, he tells everyone all about how he won 5k. The rest of the weekend just didnt happen. Bad dream or a random mugging or something, but we dont talk about that. All we talk about is winning 5k.

[jpinpb]

PSD – Perpetual State of Denial.

[jpinpb]

PSD – Perpetual State of Denial.

[jpinpb]

PSD – Perpetual State of Denial.

[jpinpb]

PSD – Perpetual State of Denial.

[jpinpb]

PSD – Perpetual State of Denial.

[Coronita]

gn, you forgot something. When he goes back home, he tells everyone all about how he won 5k. The rest of the weekend just didnt happen. Bad dream or a random mugging or something, but we dont talk about that. All we talk about is winning 5k.

 

That same may be true for a few pig stock traders too 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Doofrat]

I’m not a religious person, but if I found out that Hell was real and involved endless gambling stories, I’d find religion real quick!

[NotCranky]

“One of the couples in this story, Robert & Yvonne Cromer were featured in this story in 2004 (when things were still booming).”

Read both stories and the post associated with one of them . As a parent it makes me wonder what all this did for their children who were in the formative years when the parents were either on a roller coaster 24hrs a day or bingeing on Real Estate 12-15 hours a day and are now in the process dealing with losing Real Estate 12-15 hours a day. Nice.I hope they were at the least with grandma and not throwing up from stress in a corner somewhere at the local kindercare.

[Aecetia]

Shark update: http://bubbletracking.blogspot.com/
with pictures of the McMansion.

[Aecetia]

Shark update: http://bubbletracking.blogspot.com/
with pictures of the McMansion.

[Aecetia]

Shark update: http://bubbletracking.blogspot.com/
with pictures of the McMansion.

[Aecetia]

Shark update: http://bubbletracking.blogspot.com/
with pictures of the McMansion.

[Aecetia]

Shark update: http://bubbletracking.blogspot.com/
with pictures of the McMansion.

[NotCranky]

“One of the couples in this story, Robert & Yvonne Cromer were featured in this story in 2004 (when things were still booming).”

Read both stories and the post associated with one of them . As a parent it makes me wonder what all this did for their children who were in the formative years when the parents were either on a roller coaster 24hrs a day or bingeing on Real Estate 12-15 hours a day and are now in the process dealing with losing Real Estate 12-15 hours a day. Nice.I hope they were at the least with grandma and not throwing up from stress in a corner somewhere at the local kindercare.

[NotCranky]

“One of the couples in this story, Robert & Yvonne Cromer were featured in this story in 2004 (when things were still booming).”

Read both stories and the post associated with one of them . As a parent it makes me wonder what all this did for their children who were in the formative years when the parents were either on a roller coaster 24hrs a day or bingeing on Real Estate 12-15 hours a day and are now in the process dealing with losing Real Estate 12-15 hours a day. Nice.I hope they were at the least with grandma and not throwing up from stress in a corner somewhere at the local kindercare.

[NotCranky]

“One of the couples in this story, Robert & Yvonne Cromer were featured in this story in 2004 (when things were still booming).”

Read both stories and the post associated with one of them . As a parent it makes me wonder what all this did for their children who were in the formative years when the parents were either on a roller coaster 24hrs a day or bingeing on Real Estate 12-15 hours a day and are now in the process dealing with losing Real Estate 12-15 hours a day. Nice.I hope they were at the least with grandma and not throwing up from stress in a corner somewhere at the local kindercare.

[NotCranky]

“One of the couples in this story, Robert & Yvonne Cromer were featured in this story in 2004 (when things were still booming).”

Read both stories and the post associated with one of them . As a parent it makes me wonder what all this did for their children who were in the formative years when the parents were either on a roller coaster 24hrs a day or bingeing on Real Estate 12-15 hours a day and are now in the process dealing with losing Real Estate 12-15 hours a day. Nice.I hope they were at the least with grandma and not throwing up from stress in a corner somewhere at the local kindercare.

[Doofrat]

I’m not a religious person, but if I found out that Hell was real and involved endless gambling stories, I’d find religion real quick!

[Doofrat]

I’m not a religious person, but if I found out that Hell was real and involved endless gambling stories, I’d find religion real quick!

[Doofrat]

I’m not a religious person, but if I found out that Hell was real and involved endless gambling stories, I’d find religion real quick!

[Doofrat]

I’m not a religious person, but if I found out that Hell was real and involved endless gambling stories, I’d find religion real quick!

[Coronita]

gn, you forgot something. When he goes back home, he tells everyone all about how he won 5k. The rest of the weekend just didnt happen. Bad dream or a random mugging or something, but we dont talk about that. All we talk about is winning 5k.

 

That same may be true for a few pig stock traders too 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

gn, you forgot something. When he goes back home, he tells everyone all about how he won 5k. The rest of the weekend just didnt happen. Bad dream or a random mugging or something, but we dont talk about that. All we talk about is winning 5k.

 

That same may be true for a few pig stock traders too 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

gn, you forgot something. When he goes back home, he tells everyone all about how he won 5k. The rest of the weekend just didnt happen. Bad dream or a random mugging or something, but we dont talk about that. All we talk about is winning 5k.

 

That same may be true for a few pig stock traders too 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

gn, you forgot something. When he goes back home, he tells everyone all about how he won 5k. The rest of the weekend just didnt happen. Bad dream or a random mugging or something, but we dont talk about that. All we talk about is winning 5k.

 

That same may be true for a few pig stock traders too 🙂

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[DWCAP]

gn, you forgot something. When he goes back home, he tells everyone all about how he won 5k. The rest of the weekend just didnt happen. Bad dream or a random mugging or something, but we dont talk about that. All we talk about is winning 5k.

[DWCAP]

gn, you forgot something. When he goes back home, he tells everyone all about how he won 5k. The rest of the weekend just didnt happen. Bad dream or a random mugging or something, but we dont talk about that. All we talk about is winning 5k.

[DWCAP]

gn, you forgot something. When he goes back home, he tells everyone all about how he won 5k. The rest of the weekend just didnt happen. Bad dream or a random mugging or something, but we dont talk about that. All we talk about is winning 5k.

[DWCAP]

gn, you forgot something. When he goes back home, he tells everyone all about how he won 5k. The rest of the weekend just didnt happen. Bad dream or a random mugging or something, but we dont talk about that. All we talk about is winning 5k.

[Coronita]

I'm not chuckling at this particular couple because they mismanaged things. I chuckle every time I read the "millionaire in the making" on Money, I chuckle. Because usually the author(s) seem to be confused about what an asset is and what a liability is.

In fact, I can't how many times I've seen an article that xyz is a millionaire in the making, because they have $700k in assets, and are 20'ies./30ies Of course, the fine line is that $600k or so is in "estimated home equity" on a primary home. Psss. cnn/money editor: until you're primary home is paid in full or until you sell your primary home less carrying costs(interest,property taxes,etc)….IT'S A LIABILITY. It would be interesting to see out of all those millionaire in the makings they interviewed, how many of them are still on track. Nevertheless, $1million USD isn't what it use to be, so I don't see the point of these areticles anymore.

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who's future didn't look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who's really getting hurt here are the banks and eventually the tax payers.

The problem that I see with all these "rich quick people" is that they seem to be so unaccustomed to new found wealth, that they eventually piss it away faster than they stumbled across it…This is the problem with americans in general. We tend to spend more and at a faster rate than we earn. This would go along the line of those folks you read about who win the lotto only to find them bankrupt 5-10years later.

 

On the other hand. It's sort of nice to start seeing things return to normal. Real skills, from real experience with real salaries. The RE thing was sort of as irritating as the dot com bubble workers who were paid ridiculous salaries to do eseentially trivial work. Now if they only figured out how to outsource these RE business things to India 🙂 (just kidding).

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[arnie]

Sorry to quibble FLU but, strictly speaking, a primary residence is an asset. Any debt incurred to purchase that asset is a liability and any difference between them is equity. In accounting this is known as the balance sheet equation . . . assets = liability + ownership equity. I understand your point, though, that the asset is only worth what someone will pay for it. On a balance sheet the asset would usually appear at the purchase cost.

[arnie]

Sorry to quibble FLU but, strictly speaking, a primary residence is an asset. Any debt incurred to purchase that asset is a liability and any difference between them is equity. In accounting this is known as the balance sheet equation . . . assets = liability + ownership equity. I understand your point, though, that the asset is only worth what someone will pay for it. On a balance sheet the asset would usually appear at the purchase cost.

[arnie]

Sorry to quibble FLU but, strictly speaking, a primary residence is an asset. Any debt incurred to purchase that asset is a liability and any difference between them is equity. In accounting this is known as the balance sheet equation . . . assets = liability + ownership equity. I understand your point, though, that the asset is only worth what someone will pay for it. On a balance sheet the asset would usually appear at the purchase cost.

[arnie]

Sorry to quibble FLU but, strictly speaking, a primary residence is an asset. Any debt incurred to purchase that asset is a liability and any difference between them is equity. In accounting this is known as the balance sheet equation . . . assets = liability + ownership equity. I understand your point, though, that the asset is only worth what someone will pay for it. On a balance sheet the asset would usually appear at the purchase cost.

[arnie]

Sorry to quibble FLU but, strictly speaking, a primary residence is an asset. Any debt incurred to purchase that asset is a liability and any difference between them is equity. In accounting this is known as the balance sheet equation . . . assets = liability + ownership equity. I understand your point, though, that the asset is only worth what someone will pay for it. On a balance sheet the asset would usually appear at the purchase cost.

[Coronita]

I'm not chuckling at this particular couple because they mismanaged things. I chuckle every time I read the "millionaire in the making" on Money, I chuckle. Because usually the author(s) seem to be confused about what an asset is and what a liability is.

In fact, I can't how many times I've seen an article that xyz is a millionaire in the making, because they have $700k in assets, and are 20'ies./30ies Of course, the fine line is that $600k or so is in "estimated home equity" on a primary home. Psss. cnn/money editor: until you're primary home is paid in full or until you sell your primary home less carrying costs(interest,property taxes,etc)….IT'S A LIABILITY. It would be interesting to see out of all those millionaire in the makings they interviewed, how many of them are still on track. Nevertheless, $1million USD isn't what it use to be, so I don't see the point of these areticles anymore.

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who's future didn't look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who's really getting hurt here are the banks and eventually the tax payers.

The problem that I see with all these "rich quick people" is that they seem to be so unaccustomed to new found wealth, that they eventually piss it away faster than they stumbled across it…This is the problem with americans in general. We tend to spend more and at a faster rate than we earn. This would go along the line of those folks you read about who win the lotto only to find them bankrupt 5-10years later.

 

On the other hand. It's sort of nice to start seeing things return to normal. Real skills, from real experience with real salaries. The RE thing was sort of as irritating as the dot com bubble workers who were paid ridiculous salaries to do eseentially trivial work. Now if they only figured out how to outsource these RE business things to India 🙂 (just kidding).

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I'm not chuckling at this particular couple because they mismanaged things. I chuckle every time I read the "millionaire in the making" on Money, I chuckle. Because usually the author(s) seem to be confused about what an asset is and what a liability is.

In fact, I can't how many times I've seen an article that xyz is a millionaire in the making, because they have $700k in assets, and are 20'ies./30ies Of course, the fine line is that $600k or so is in "estimated home equity" on a primary home. Psss. cnn/money editor: until you're primary home is paid in full or until you sell your primary home less carrying costs(interest,property taxes,etc)….IT'S A LIABILITY. It would be interesting to see out of all those millionaire in the makings they interviewed, how many of them are still on track. Nevertheless, $1million USD isn't what it use to be, so I don't see the point of these areticles anymore.

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who's future didn't look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who's really getting hurt here are the banks and eventually the tax payers.

The problem that I see with all these "rich quick people" is that they seem to be so unaccustomed to new found wealth, that they eventually piss it away faster than they stumbled across it…This is the problem with americans in general. We tend to spend more and at a faster rate than we earn. This would go along the line of those folks you read about who win the lotto only to find them bankrupt 5-10years later.

 

On the other hand. It's sort of nice to start seeing things return to normal. Real skills, from real experience with real salaries. The RE thing was sort of as irritating as the dot com bubble workers who were paid ridiculous salaries to do eseentially trivial work. Now if they only figured out how to outsource these RE business things to India 🙂 (just kidding).

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I'm not chuckling at this particular couple because they mismanaged things. I chuckle every time I read the "millionaire in the making" on Money, I chuckle. Because usually the author(s) seem to be confused about what an asset is and what a liability is.

In fact, I can't how many times I've seen an article that xyz is a millionaire in the making, because they have $700k in assets, and are 20'ies./30ies Of course, the fine line is that $600k or so is in "estimated home equity" on a primary home. Psss. cnn/money editor: until you're primary home is paid in full or until you sell your primary home less carrying costs(interest,property taxes,etc)….IT'S A LIABILITY. It would be interesting to see out of all those millionaire in the makings they interviewed, how many of them are still on track. Nevertheless, $1million USD isn't what it use to be, so I don't see the point of these areticles anymore.

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who's future didn't look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who's really getting hurt here are the banks and eventually the tax payers.

The problem that I see with all these "rich quick people" is that they seem to be so unaccustomed to new found wealth, that they eventually piss it away faster than they stumbled across it…This is the problem with americans in general. We tend to spend more and at a faster rate than we earn. This would go along the line of those folks you read about who win the lotto only to find them bankrupt 5-10years later.

 

On the other hand. It's sort of nice to start seeing things return to normal. Real skills, from real experience with real salaries. The RE thing was sort of as irritating as the dot com bubble workers who were paid ridiculous salaries to do eseentially trivial work. Now if they only figured out how to outsource these RE business things to India 🙂 (just kidding).

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I'm not chuckling at this particular couple because they mismanaged things. I chuckle every time I read the "millionaire in the making" on Money, I chuckle. Because usually the author(s) seem to be confused about what an asset is and what a liability is.

In fact, I can't how many times I've seen an article that xyz is a millionaire in the making, because they have $700k in assets, and are 20'ies./30ies Of course, the fine line is that $600k or so is in "estimated home equity" on a primary home. Psss. cnn/money editor: until you're primary home is paid in full or until you sell your primary home less carrying costs(interest,property taxes,etc)….IT'S A LIABILITY. It would be interesting to see out of all those millionaire in the makings they interviewed, how many of them are still on track. Nevertheless, $1million USD isn't what it use to be, so I don't see the point of these areticles anymore.

As far as the couple featured. i think one thing to point out..What really did the couple have to lose? You had a couple who's future didn't look promising to begin with, so desperate to ride a rollercoaster for $50k. So doing the RE thing that required little skills for quick buck would have been the best thing for them at the time. Yeah, so they will get a ding on their credit. Yeah, they might even have to file for bankruptcy…The only one who's really getting hurt here are the banks and eventually the tax payers.

The problem that I see with all these "rich quick people" is that they seem to be so unaccustomed to new found wealth, that they eventually piss it away faster than they stumbled across it…This is the problem with americans in general. We tend to spend more and at a faster rate than we earn. This would go along the line of those folks you read about who win the lotto only to find them bankrupt 5-10years later.

 

On the other hand. It's sort of nice to start seeing things return to normal. Real skills, from real experience with real salaries. The RE thing was sort of as irritating as the dot com bubble workers who were paid ridiculous salaries to do eseentially trivial work. Now if they only figured out how to outsource these RE business things to India 🙂 (just kidding).

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

In case you missed it on the the union tribune blog (what the last two threads here are referring to: )

 

 By rcromer on 03/24/2008 at 10:25 a.m.

In Response to some of the harsh readers and armchair quarterbacks,

I do admit, I/we made some very poor choices, especially being as aggressive as we were. First off, we have worked hard our entire lives. Anyone who knows us will vouch for that. And if one thinks that doing due diligence on multiple properties/housing markets, representing the transactions until closing and managing the bills, properties, and tenants afterwards is easy work, then you have a much higher tolerance for stress and exhaustion than we did….and you may have missed your calling.

To the lady who said that she would stay away from us: 90-95% of our business comes from past clients and referrals because our clients know that we are good at what we do, we work extremely hard and we are always looking out for their best interest (we are much more conservative with our client's money, than we were our own). In addition, we did not sell very much real estate in 2007, because we did not feel that we could ethically advise someone to buy in San Diego, unless it was a non-investment decision driven by the client. There were several occasions that we had clients come to us wanting to buy and we told them to "come back in a year and we will re-evaluate the market conditions then". If we had chosen to sell those people homes we may not be in the financial situation we are in now. However, it was the right thing to do. We have bettered many peoples' lives through real estate over the last several years and we will continue to do so. Our biggest mistakes were that we leveraged too much, did not have an adequate liquid savings (especially when trying to open a business with huge overhead) and we put all our eggs in one basket.

 

By rcromer on 03/24/2008 at 10:25 a.m.

In 2007 we went out on a limb, when an excellent location on a commercial building became available to open our own business. We were optimistic about the opportunities we could create not only for ourselves but for other Realtors and individuals in the home services industry. We poured our heart, soul's ad savings into the business and spent 3 months remodeling a building that was built in 1983. At that time the market was making a drastic adjustment downward and we had much more money going out than we did coming in. Learning the ins and outs of running a small business as well as managing our properties was keeping us at work for 12-15 hours a day. Everything we had worked for over the last 10 years went into the business, which had always been a dream of mine. (That is why I entered the roller coaster contest 10 years prior, so I could open my own business). In retrospect, I now realize that my decisions were based on emotion and not rational business choices.

In case, you are wondering if we have learned from our mistakes, without a doubt. I have a master's degree from the University of San Diego, but by far my biggest education has come from the school of hard knocks. We have learned so much, maybe more than we wanted to, about foreclosures, cash flow, and investing. As a result, we are even better real estate agents. It was never our intent to "walk away" from our commitments. We are still in the process of righting our wrongs with banks and debtors. We know we created our situation and are prepared to deal with the consequences. .

Without going through something like this, no one can fathom the stress, emotional devastation, family upheaval and financial struggles that we have and are currently enduring. I would not wish this on anyone, not even those that laughed, ridiculed or were even vengeful in their remarks.

 

BTW: I see ocrenter's post there too 🙂

rcromer,

so you are blaming this all on the failed business adventure in 2007. I find that a little hard to believe.

first off, according to the CNNMoney article back in 5/2004, the 10 properties you guys had at the time were in the red by $3000 every month.

but you kept buying! in fact, the two of you ended up buying a $1.35 million home in Chula Vista toward the end of 2004 (which ended up in foreclosure). according to the CNNMoney article, the two of you only pulled in $175k in '04. there's no way someone making $175k can afford a $1.35 million dollar home, especially when you guys were still on the hook for $3000 every month to make up the balance on the 10 properties.

then in 2005 you guys bought a 2500 sqft home in Chula Vista for 3/4 million. there's no way rent would be able to cover the carrying cost on that one. not even close!

the problem is it really doesn't take a rocket scientist to figure out that if your properties are negative cash flowing, you shouldn't be buying more properties that would be even more negative in cash flow. face it, the main reason why you guys faltered is one reason and one reason only: GREED.

as for you telling your clients to not buy in 2007. nice but a little too late. inventory in SD started skyrocketing in 2005 and sales were diving starting in 2004. the writing was already on the wall then. had you started telling your clients to stop buying in '05 then yes, you would be a good agent.

telling a client not to buy in '07? boy, a 5 year old could have told them that!

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

In case you missed it on the the union tribune blog (what the last two threads here are referring to: )

 

 By rcromer on 03/24/2008 at 10:25 a.m.

In Response to some of the harsh readers and armchair quarterbacks,

I do admit, I/we made some very poor choices, especially being as aggressive as we were. First off, we have worked hard our entire lives. Anyone who knows us will vouch for that. And if one thinks that doing due diligence on multiple properties/housing markets, representing the transactions until closing and managing the bills, properties, and tenants afterwards is easy work, then you have a much higher tolerance for stress and exhaustion than we did….and you may have missed your calling.

To the lady who said that she would stay away from us: 90-95% of our business comes from past clients and referrals because our clients know that we are good at what we do, we work extremely hard and we are always looking out for their best interest (we are much more conservative with our client's money, than we were our own). In addition, we did not sell very much real estate in 2007, because we did not feel that we could ethically advise someone to buy in San Diego, unless it was a non-investment decision driven by the client. There were several occasions that we had clients come to us wanting to buy and we told them to "come back in a year and we will re-evaluate the market conditions then". If we had chosen to sell those people homes we may not be in the financial situation we are in now. However, it was the right thing to do. We have bettered many peoples' lives through real estate over the last several years and we will continue to do so. Our biggest mistakes were that we leveraged too much, did not have an adequate liquid savings (especially when trying to open a business with huge overhead) and we put all our eggs in one basket.

 

By rcromer on 03/24/2008 at 10:25 a.m.

In 2007 we went out on a limb, when an excellent location on a commercial building became available to open our own business. We were optimistic about the opportunities we could create not only for ourselves but for other Realtors and individuals in the home services industry. We poured our heart, soul's ad savings into the business and spent 3 months remodeling a building that was built in 1983. At that time the market was making a drastic adjustment downward and we had much more money going out than we did coming in. Learning the ins and outs of running a small business as well as managing our properties was keeping us at work for 12-15 hours a day. Everything we had worked for over the last 10 years went into the business, which had always been a dream of mine. (That is why I entered the roller coaster contest 10 years prior, so I could open my own business). In retrospect, I now realize that my decisions were based on emotion and not rational business choices.

In case, you are wondering if we have learned from our mistakes, without a doubt. I have a master's degree from the University of San Diego, but by far my biggest education has come from the school of hard knocks. We have learned so much, maybe more than we wanted to, about foreclosures, cash flow, and investing. As a result, we are even better real estate agents. It was never our intent to "walk away" from our commitments. We are still in the process of righting our wrongs with banks and debtors. We know we created our situation and are prepared to deal with the consequences. .

Without going through something like this, no one can fathom the stress, emotional devastation, family upheaval and financial struggles that we have and are currently enduring. I would not wish this on anyone, not even those that laughed, ridiculed or were even vengeful in their remarks.

 

BTW: I see ocrenter's post there too 🙂

rcromer,

so you are blaming this all on the failed business adventure in 2007. I find that a little hard to believe.

first off, according to the CNNMoney article back in 5/2004, the 10 properties you guys had at the time were in the red by $3000 every month.

but you kept buying! in fact, the two of you ended up buying a $1.35 million home in Chula Vista toward the end of 2004 (which ended up in foreclosure). according to the CNNMoney article, the two of you only pulled in $175k in '04. there's no way someone making $175k can afford a $1.35 million dollar home, especially when you guys were still on the hook for $3000 every month to make up the balance on the 10 properties.

then in 2005 you guys bought a 2500 sqft home in Chula Vista for 3/4 million. there's no way rent would be able to cover the carrying cost on that one. not even close!

the problem is it really doesn't take a rocket scientist to figure out that if your properties are negative cash flowing, you shouldn't be buying more properties that would be even more negative in cash flow. face it, the main reason why you guys faltered is one reason and one reason only: GREED.

as for you telling your clients to not buy in 2007. nice but a little too late. inventory in SD started skyrocketing in 2005 and sales were diving starting in 2004. the writing was already on the wall then. had you started telling your clients to stop buying in '05 then yes, you would be a good agent.

telling a client not to buy in '07? boy, a 5 year old could have told them that!

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

In case you missed it on the the union tribune blog (what the last two threads here are referring to: )

 

 By rcromer on 03/24/2008 at 10:25 a.m.

In Response to some of the harsh readers and armchair quarterbacks,

I do admit, I/we made some very poor choices, especially being as aggressive as we were. First off, we have worked hard our entire lives. Anyone who knows us will vouch for that. And if one thinks that doing due diligence on multiple properties/housing markets, representing the transactions until closing and managing the bills, properties, and tenants afterwards is easy work, then you have a much higher tolerance for stress and exhaustion than we did….and you may have missed your calling.

To the lady who said that she would stay away from us: 90-95% of our business comes from past clients and referrals because our clients know that we are good at what we do, we work extremely hard and we are always looking out for their best interest (we are much more conservative with our client's money, than we were our own). In addition, we did not sell very much real estate in 2007, because we did not feel that we could ethically advise someone to buy in San Diego, unless it was a non-investment decision driven by the client. There were several occasions that we had clients come to us wanting to buy and we told them to "come back in a year and we will re-evaluate the market conditions then". If we had chosen to sell those people homes we may not be in the financial situation we are in now. However, it was the right thing to do. We have bettered many peoples' lives through real estate over the last several years and we will continue to do so. Our biggest mistakes were that we leveraged too much, did not have an adequate liquid savings (especially when trying to open a business with huge overhead) and we put all our eggs in one basket.

 

By rcromer on 03/24/2008 at 10:25 a.m.

In 2007 we went out on a limb, when an excellent location on a commercial building became available to open our own business. We were optimistic about the opportunities we could create not only for ourselves but for other Realtors and individuals in the home services industry. We poured our heart, soul's ad savings into the business and spent 3 months remodeling a building that was built in 1983. At that time the market was making a drastic adjustment downward and we had much more money going out than we did coming in. Learning the ins and outs of running a small business as well as managing our properties was keeping us at work for 12-15 hours a day. Everything we had worked for over the last 10 years went into the business, which had always been a dream of mine. (That is why I entered the roller coaster contest 10 years prior, so I could open my own business). In retrospect, I now realize that my decisions were based on emotion and not rational business choices.

In case, you are wondering if we have learned from our mistakes, without a doubt. I have a master's degree from the University of San Diego, but by far my biggest education has come from the school of hard knocks. We have learned so much, maybe more than we wanted to, about foreclosures, cash flow, and investing. As a result, we are even better real estate agents. It was never our intent to "walk away" from our commitments. We are still in the process of righting our wrongs with banks and debtors. We know we created our situation and are prepared to deal with the consequences. .

Without going through something like this, no one can fathom the stress, emotional devastation, family upheaval and financial struggles that we have and are currently enduring. I would not wish this on anyone, not even those that laughed, ridiculed or were even vengeful in their remarks.

 

BTW: I see ocrenter's post there too 🙂

rcromer,

so you are blaming this all on the failed business adventure in 2007. I find that a little hard to believe.

first off, according to the CNNMoney article back in 5/2004, the 10 properties you guys had at the time were in the red by $3000 every month.

but you kept buying! in fact, the two of you ended up buying a $1.35 million home in Chula Vista toward the end of 2004 (which ended up in foreclosure). according to the CNNMoney article, the two of you only pulled in $175k in '04. there's no way someone making $175k can afford a $1.35 million dollar home, especially when you guys were still on the hook for $3000 every month to make up the balance on the 10 properties.

then in 2005 you guys bought a 2500 sqft home in Chula Vista for 3/4 million. there's no way rent would be able to cover the carrying cost on that one. not even close!

the problem is it really doesn't take a rocket scientist to figure out that if your properties are negative cash flowing, you shouldn't be buying more properties that would be even more negative in cash flow. face it, the main reason why you guys faltered is one reason and one reason only: GREED.

as for you telling your clients to not buy in 2007. nice but a little too late. inventory in SD started skyrocketing in 2005 and sales were diving starting in 2004. the writing was already on the wall then. had you started telling your clients to stop buying in '05 then yes, you would be a good agent.

telling a client not to buy in '07? boy, a 5 year old could have told them that!

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

In case you missed it on the the union tribune blog (what the last two threads here are referring to: )

 

 By rcromer on 03/24/2008 at 10:25 a.m.

In Response to some of the harsh readers and armchair quarterbacks,

I do admit, I/we made some very poor choices, especially being as aggressive as we were. First off, we have worked hard our entire lives. Anyone who knows us will vouch for that. And if one thinks that doing due diligence on multiple properties/housing markets, representing the transactions until closing and managing the bills, properties, and tenants afterwards is easy work, then you have a much higher tolerance for stress and exhaustion than we did….and you may have missed your calling.

To the lady who said that she would stay away from us: 90-95% of our business comes from past clients and referrals because our clients know that we are good at what we do, we work extremely hard and we are always looking out for their best interest (we are much more conservative with our client's money, than we were our own). In addition, we did not sell very much real estate in 2007, because we did not feel that we could ethically advise someone to buy in San Diego, unless it was a non-investment decision driven by the client. There were several occasions that we had clients come to us wanting to buy and we told them to "come back in a year and we will re-evaluate the market conditions then". If we had chosen to sell those people homes we may not be in the financial situation we are in now. However, it was the right thing to do. We have bettered many peoples' lives through real estate over the last several years and we will continue to do so. Our biggest mistakes were that we leveraged too much, did not have an adequate liquid savings (especially when trying to open a business with huge overhead) and we put all our eggs in one basket.

 

By rcromer on 03/24/2008 at 10:25 a.m.

In 2007 we went out on a limb, when an excellent location on a commercial building became available to open our own business. We were optimistic about the opportunities we could create not only for ourselves but for other Realtors and individuals in the home services industry. We poured our heart, soul's ad savings into the business and spent 3 months remodeling a building that was built in 1983. At that time the market was making a drastic adjustment downward and we had much more money going out than we did coming in. Learning the ins and outs of running a small business as well as managing our properties was keeping us at work for 12-15 hours a day. Everything we had worked for over the last 10 years went into the business, which had always been a dream of mine. (That is why I entered the roller coaster contest 10 years prior, so I could open my own business). In retrospect, I now realize that my decisions were based on emotion and not rational business choices.

In case, you are wondering if we have learned from our mistakes, without a doubt. I have a master's degree from the University of San Diego, but by far my biggest education has come from the school of hard knocks. We have learned so much, maybe more than we wanted to, about foreclosures, cash flow, and investing. As a result, we are even better real estate agents. It was never our intent to "walk away" from our commitments. We are still in the process of righting our wrongs with banks and debtors. We know we created our situation and are prepared to deal with the consequences. .

Without going through something like this, no one can fathom the stress, emotional devastation, family upheaval and financial struggles that we have and are currently enduring. I would not wish this on anyone, not even those that laughed, ridiculed or were even vengeful in their remarks.

 

BTW: I see ocrenter's post there too 🙂

rcromer,

so you are blaming this all on the failed business adventure in 2007. I find that a little hard to believe.

first off, according to the CNNMoney article back in 5/2004, the 10 properties you guys had at the time were in the red by $3000 every month.

but you kept buying! in fact, the two of you ended up buying a $1.35 million home in Chula Vista toward the end of 2004 (which ended up in foreclosure). according to the CNNMoney article, the two of you only pulled in $175k in '04. there's no way someone making $175k can afford a $1.35 million dollar home, especially when you guys were still on the hook for $3000 every month to make up the balance on the 10 properties.

then in 2005 you guys bought a 2500 sqft home in Chula Vista for 3/4 million. there's no way rent would be able to cover the carrying cost on that one. not even close!

the problem is it really doesn't take a rocket scientist to figure out that if your properties are negative cash flowing, you shouldn't be buying more properties that would be even more negative in cash flow. face it, the main reason why you guys faltered is one reason and one reason only: GREED.

as for you telling your clients to not buy in 2007. nice but a little too late. inventory in SD started skyrocketing in 2005 and sales were diving starting in 2004. the writing was already on the wall then. had you started telling your clients to stop buying in '05 then yes, you would be a good agent.

telling a client not to buy in '07? boy, a 5 year old could have told them that!

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

In case you missed it on the the union tribune blog (what the last two threads here are referring to: )

 

 By rcromer on 03/24/2008 at 10:25 a.m.

In Response to some of the harsh readers and armchair quarterbacks,

I do admit, I/we made some very poor choices, especially being as aggressive as we were. First off, we have worked hard our entire lives. Anyone who knows us will vouch for that. And if one thinks that doing due diligence on multiple properties/housing markets, representing the transactions until closing and managing the bills, properties, and tenants afterwards is easy work, then you have a much higher tolerance for stress and exhaustion than we did….and you may have missed your calling.

To the lady who said that she would stay away from us: 90-95% of our business comes from past clients and referrals because our clients know that we are good at what we do, we work extremely hard and we are always looking out for their best interest (we are much more conservative with our client's money, than we were our own). In addition, we did not sell very much real estate in 2007, because we did not feel that we could ethically advise someone to buy in San Diego, unless it was a non-investment decision driven by the client. There were several occasions that we had clients come to us wanting to buy and we told them to "come back in a year and we will re-evaluate the market conditions then". If we had chosen to sell those people homes we may not be in the financial situation we are in now. However, it was the right thing to do. We have bettered many peoples' lives through real estate over the last several years and we will continue to do so. Our biggest mistakes were that we leveraged too much, did not have an adequate liquid savings (especially when trying to open a business with huge overhead) and we put all our eggs in one basket.

 

By rcromer on 03/24/2008 at 10:25 a.m.

In 2007 we went out on a limb, when an excellent location on a commercial building became available to open our own business. We were optimistic about the opportunities we could create not only for ourselves but for other Realtors and individuals in the home services industry. We poured our heart, soul's ad savings into the business and spent 3 months remodeling a building that was built in 1983. At that time the market was making a drastic adjustment downward and we had much more money going out than we did coming in. Learning the ins and outs of running a small business as well as managing our properties was keeping us at work for 12-15 hours a day. Everything we had worked for over the last 10 years went into the business, which had always been a dream of mine. (That is why I entered the roller coaster contest 10 years prior, so I could open my own business). In retrospect, I now realize that my decisions were based on emotion and not rational business choices.

In case, you are wondering if we have learned from our mistakes, without a doubt. I have a master's degree from the University of San Diego, but by far my biggest education has come from the school of hard knocks. We have learned so much, maybe more than we wanted to, about foreclosures, cash flow, and investing. As a result, we are even better real estate agents. It was never our intent to "walk away" from our commitments. We are still in the process of righting our wrongs with banks and debtors. We know we created our situation and are prepared to deal with the consequences. .

Without going through something like this, no one can fathom the stress, emotional devastation, family upheaval and financial struggles that we have and are currently enduring. I would not wish this on anyone, not even those that laughed, ridiculed or were even vengeful in their remarks.

 

BTW: I see ocrenter's post there too 🙂

rcromer,

so you are blaming this all on the failed business adventure in 2007. I find that a little hard to believe.

first off, according to the CNNMoney article back in 5/2004, the 10 properties you guys had at the time were in the red by $3000 every month.

but you kept buying! in fact, the two of you ended up buying a $1.35 million home in Chula Vista toward the end of 2004 (which ended up in foreclosure). according to the CNNMoney article, the two of you only pulled in $175k in '04. there's no way someone making $175k can afford a $1.35 million dollar home, especially when you guys were still on the hook for $3000 every month to make up the balance on the 10 properties.

then in 2005 you guys bought a 2500 sqft home in Chula Vista for 3/4 million. there's no way rent would be able to cover the carrying cost on that one. not even close!

the problem is it really doesn't take a rocket scientist to figure out that if your properties are negative cash flowing, you shouldn't be buying more properties that would be even more negative in cash flow. face it, the main reason why you guys faltered is one reason and one reason only: GREED.

as for you telling your clients to not buy in 2007. nice but a little too late. inventory in SD started skyrocketing in 2005 and sales were diving starting in 2004. the writing was already on the wall then. had you started telling your clients to stop buying in '05 then yes, you would be a good agent.

telling a client not to buy in '07? boy, a 5 year old could have told them that!

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[SHILOH]

three homes to foreclosure….
That kind of record should make them ineligable for a future loan.

[donaldduckmoore]

I wonder why stupid lenders would had given them loans. Didn’t they look at their applications? The FBI should investigate the lenders and the people who were involved in the transaction down the line too.

[donaldduckmoore]

I wonder why stupid lenders would had given them loans. Didn’t they look at their applications? The FBI should investigate the lenders and the people who were involved in the transaction down the line too.

[donaldduckmoore]

I wonder why stupid lenders would had given them loans. Didn’t they look at their applications? The FBI should investigate the lenders and the people who were involved in the transaction down the line too.

[donaldduckmoore]

I wonder why stupid lenders would had given them loans. Didn’t they look at their applications? The FBI should investigate the lenders and the people who were involved in the transaction down the line too.

[donaldduckmoore]

I wonder why stupid lenders would had given them loans. Didn’t they look at their applications? The FBI should investigate the lenders and the people who were involved in the transaction down the line too.

[SHILOH]

three homes to foreclosure….
That kind of record should make them ineligable for a future loan.

[SHILOH]

three homes to foreclosure….
That kind of record should make them ineligable for a future loan.

[SHILOH]

three homes to foreclosure….
That kind of record should make them ineligable for a future loan.

[SHILOH]

three homes to foreclosure….
That kind of record should make them ineligable for a future loan.

[SHILOH]

Pamela Khamo, 42, began a career as a real estate agent in 2002 after selling her La Mesa coffee shop. As the housing market heated up, so did her commissions. By 2005, her annual income swelled to $360,000, according to bankruptcy records…..”“It took six years to build everything up and six months to lose it,” she said.,
‘Wave of foreclosures hits owners who bought multiple properties’By Mike Freeman,UNION-TRIBUNE STAFF WRITER

How reckless and stupid could she be. Impossible to sympathize with her.

[SHILOH]

Pamela Khamo, 42, began a career as a real estate agent in 2002 after selling her La Mesa coffee shop. As the housing market heated up, so did her commissions. By 2005, her annual income swelled to $360,000, according to bankruptcy records…..”“It took six years to build everything up and six months to lose it,” she said.,
‘Wave of foreclosures hits owners who bought multiple properties’By Mike Freeman,UNION-TRIBUNE STAFF WRITER

How reckless and stupid could she be. Impossible to sympathize with her.

[SHILOH]

Pamela Khamo, 42, began a career as a real estate agent in 2002 after selling her La Mesa coffee shop. As the housing market heated up, so did her commissions. By 2005, her annual income swelled to $360,000, according to bankruptcy records…..”“It took six years to build everything up and six months to lose it,” she said.,
‘Wave of foreclosures hits owners who bought multiple properties’By Mike Freeman,UNION-TRIBUNE STAFF WRITER

How reckless and stupid could she be. Impossible to sympathize with her.

[SHILOH]

Pamela Khamo, 42, began a career as a real estate agent in 2002 after selling her La Mesa coffee shop. As the housing market heated up, so did her commissions. By 2005, her annual income swelled to $360,000, according to bankruptcy records…..”“It took six years to build everything up and six months to lose it,” she said.,
‘Wave of foreclosures hits owners who bought multiple properties’By Mike Freeman,UNION-TRIBUNE STAFF WRITER

How reckless and stupid could she be. Impossible to sympathize with her.

[SHILOH]

Pamela Khamo, 42, began a career as a real estate agent in 2002 after selling her La Mesa coffee shop. As the housing market heated up, so did her commissions. By 2005, her annual income swelled to $360,000, according to bankruptcy records…..”“It took six years to build everything up and six months to lose it,” she said.,
‘Wave of foreclosures hits owners who bought multiple properties’By Mike Freeman,UNION-TRIBUNE STAFF WRITER

How reckless and stupid could she be. Impossible to sympathize with her.

[Author]

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