[temeculaguy]

Conned, I’m not blaming you but I’m also not letting you “only” blame others. You got taken by the scheme, I didn’t and I am not an expert in the field nor does my job have anything to do with R/E or finance. Your analogy about having to become an expert in medicine is flawed. You need to know the basics, two aspirin if you have a headache, a hundred might kill you. That’s a more accurate analogy of someone making 100k a year buying a few million in R/E with borrowed money. You now have a circle of friends within the support group of victims but don’t think they are indicative of all non experts, they aren’t. The vast majority of people don’t fall for this because they were given pearls of wisdom from their parents, grandparents or mentors. “There’s no such thing as a free lunch,” “If something is to good to be true, it is,” and “Don’t bite off more than you can chew.” These cliches are cliche because they are true, they have always been true and they always will be. No matter how you spin it, no matter who you try to “educate,” you will never learn your the lesson you already paid for until you look in the mirror. There is a reason my grandmother doesn’t drive on the freeway, she lacks the skills and her vehicle lacks the ability to drive 80 mph, when she does it everyone honks at her and she runs the risk of getting killed. Either learn from your mistake, educate yourself that even if these people were honest there is no way for you to skip business school and become a tycoon, stay on the surface streets and next time you try for the freeway, start off in the slow lane.

[temeculaguy]

Conned, I’m not blaming you but I’m also not letting you “only” blame others. You got taken by the scheme, I didn’t and I am not an expert in the field nor does my job have anything to do with R/E or finance. Your analogy about having to become an expert in medicine is flawed. You need to know the basics, two aspirin if you have a headache, a hundred might kill you. That’s a more accurate analogy of someone making 100k a year buying a few million in R/E with borrowed money. You now have a circle of friends within the support group of victims but don’t think they are indicative of all non experts, they aren’t. The vast majority of people don’t fall for this because they were given pearls of wisdom from their parents, grandparents or mentors. “There’s no such thing as a free lunch,” “If something is to good to be true, it is,” and “Don’t bite off more than you can chew.” These cliches are cliche because they are true, they have always been true and they always will be. No matter how you spin it, no matter who you try to “educate,” you will never learn your the lesson you already paid for until you look in the mirror. There is a reason my grandmother doesn’t drive on the freeway, she lacks the skills and her vehicle lacks the ability to drive 80 mph, when she does it everyone honks at her and she runs the risk of getting killed. Either learn from your mistake, educate yourself that even if these people were honest there is no way for you to skip business school and become a tycoon, stay on the surface streets and next time you try for the freeway, start off in the slow lane.

[temeculaguy]

Conned, I’m not blaming you but I’m also not letting you “only” blame others. You got taken by the scheme, I didn’t and I am not an expert in the field nor does my job have anything to do with R/E or finance. Your analogy about having to become an expert in medicine is flawed. You need to know the basics, two aspirin if you have a headache, a hundred might kill you. That’s a more accurate analogy of someone making 100k a year buying a few million in R/E with borrowed money. You now have a circle of friends within the support group of victims but don’t think they are indicative of all non experts, they aren’t. The vast majority of people don’t fall for this because they were given pearls of wisdom from their parents, grandparents or mentors. “There’s no such thing as a free lunch,” “If something is to good to be true, it is,” and “Don’t bite off more than you can chew.” These cliches are cliche because they are true, they have always been true and they always will be. No matter how you spin it, no matter who you try to “educate,” you will never learn your the lesson you already paid for until you look in the mirror. There is a reason my grandmother doesn’t drive on the freeway, she lacks the skills and her vehicle lacks the ability to drive 80 mph, when she does it everyone honks at her and she runs the risk of getting killed. Either learn from your mistake, educate yourself that even if these people were honest there is no way for you to skip business school and become a tycoon, stay on the surface streets and next time you try for the freeway, start off in the slow lane.

[temeculaguy]

Conned, I’m not blaming you but I’m also not letting you “only” blame others. You got taken by the scheme, I didn’t and I am not an expert in the field nor does my job have anything to do with R/E or finance. Your analogy about having to become an expert in medicine is flawed. You need to know the basics, two aspirin if you have a headache, a hundred might kill you. That’s a more accurate analogy of someone making 100k a year buying a few million in R/E with borrowed money. You now have a circle of friends within the support group of victims but don’t think they are indicative of all non experts, they aren’t. The vast majority of people don’t fall for this because they were given pearls of wisdom from their parents, grandparents or mentors. “There’s no such thing as a free lunch,” “If something is to good to be true, it is,” and “Don’t bite off more than you can chew.” These cliches are cliche because they are true, they have always been true and they always will be. No matter how you spin it, no matter who you try to “educate,” you will never learn your the lesson you already paid for until you look in the mirror. There is a reason my grandmother doesn’t drive on the freeway, she lacks the skills and her vehicle lacks the ability to drive 80 mph, when she does it everyone honks at her and she runs the risk of getting killed. Either learn from your mistake, educate yourself that even if these people were honest there is no way for you to skip business school and become a tycoon, stay on the surface streets and next time you try for the freeway, start off in the slow lane.

[temeculaguy]

Conned, I’m not blaming you but I’m also not letting you “only” blame others. You got taken by the scheme, I didn’t and I am not an expert in the field nor does my job have anything to do with R/E or finance. Your analogy about having to become an expert in medicine is flawed. You need to know the basics, two aspirin if you have a headache, a hundred might kill you. That’s a more accurate analogy of someone making 100k a year buying a few million in R/E with borrowed money. You now have a circle of friends within the support group of victims but don’t think they are indicative of all non experts, they aren’t. The vast majority of people don’t fall for this because they were given pearls of wisdom from their parents, grandparents or mentors. “There’s no such thing as a free lunch,” “If something is to good to be true, it is,” and “Don’t bite off more than you can chew.” These cliches are cliche because they are true, they have always been true and they always will be. No matter how you spin it, no matter who you try to “educate,” you will never learn your the lesson you already paid for until you look in the mirror. There is a reason my grandmother doesn’t drive on the freeway, she lacks the skills and her vehicle lacks the ability to drive 80 mph, when she does it everyone honks at her and she runs the risk of getting killed. Either learn from your mistake, educate yourself that even if these people were honest there is no way for you to skip business school and become a tycoon, stay on the surface streets and next time you try for the freeway, start off in the slow lane.

[temeculaguy]

I agree with paramount’s summary, “yeah, right.” Marion, it’s anyone’s guess what price level year equivalent we will reach but returning to 1997 nominal prices is too far fetched. If you go back ten years in pricing and count inflation, then they would actually be far worse, since there was no appreciation from 1992 to 1997, that guess would put you in the 1980’s and that is just silly. It’s going to land somewhere between 1999 and 2002 nominally. That would give you an inflation adjusted price of a little under 200k as a worse case scanrio for your parents house and that will be as low as it will go for an average property in fair condition or a new property. My guess is 2001 numbers nominally, giving it a 1999 feel, 250-280 for their house as a realistic guess. With your plan, condo’s will be going for 80k and that is too close to the median income. Think of rents as the floor, rent didn’t go crazy and people in this area are comfortably affording $1000 to $2000 in rent. If rent goes down, it only drops a little so you have to look for the floor at the point that zero down is cost neutral to buy (not that there will be zero down loans and don’t use the pmi for a zero down but don’t factor downpayment when determining the number for cost neutral). So a $1500 a month renter that is comfortable with their rent will buy it or an investor will buy it when it crosses a line, for 1500 that line is between 150k to 225k based on variables for a particular property (hoa, taxes, and other carry costs). You have to factor the thinking, ability and behavior of others when determining a floor price.

You parents house at 140k is (140k for 30yrs@6%=$839 a month P&I) so let’s say I rent it for 1500, my income tax deduction is roughly equivalent to the taxes and insurance so I can buy it for $839 or rent it for $1500. That is also just a formula counting nothing down, with 28k down (20%) my loan is 112K and I’m paying $671

If interest rates double, all these numbers are moot but when you get inside the numbers you will see that a return to 140k for a 1800 sq ft. sfr is a pipe dream. So, “yeah, right” is the correct response.

[temeculaguy]

I agree with paramount’s summary, “yeah, right.” Marion, it’s anyone’s guess what price level year equivalent we will reach but returning to 1997 nominal prices is too far fetched. If you go back ten years in pricing and count inflation, then they would actually be far worse, since there was no appreciation from 1992 to 1997, that guess would put you in the 1980’s and that is just silly. It’s going to land somewhere between 1999 and 2002 nominally. That would give you an inflation adjusted price of a little under 200k as a worse case scanrio for your parents house and that will be as low as it will go for an average property in fair condition or a new property. My guess is 2001 numbers nominally, giving it a 1999 feel, 250-280 for their house as a realistic guess. With your plan, condo’s will be going for 80k and that is too close to the median income. Think of rents as the floor, rent didn’t go crazy and people in this area are comfortably affording $1000 to $2000 in rent. If rent goes down, it only drops a little so you have to look for the floor at the point that zero down is cost neutral to buy (not that there will be zero down loans and don’t use the pmi for a zero down but don’t factor downpayment when determining the number for cost neutral). So a $1500 a month renter that is comfortable with their rent will buy it or an investor will buy it when it crosses a line, for 1500 that line is between 150k to 225k based on variables for a particular property (hoa, taxes, and other carry costs). You have to factor the thinking, ability and behavior of others when determining a floor price.

You parents house at 140k is (140k for 30yrs@6%=$839 a month P&I) so let’s say I rent it for 1500, my income tax deduction is roughly equivalent to the taxes and insurance so I can buy it for $839 or rent it for $1500. That is also just a formula counting nothing down, with 28k down (20%) my loan is 112K and I’m paying $671

If interest rates double, all these numbers are moot but when you get inside the numbers you will see that a return to 140k for a 1800 sq ft. sfr is a pipe dream. So, “yeah, right” is the correct response.

[temeculaguy]

I agree with paramount’s summary, “yeah, right.” Marion, it’s anyone’s guess what price level year equivalent we will reach but returning to 1997 nominal prices is too far fetched. If you go back ten years in pricing and count inflation, then they would actually be far worse, since there was no appreciation from 1992 to 1997, that guess would put you in the 1980’s and that is just silly. It’s going to land somewhere between 1999 and 2002 nominally. That would give you an inflation adjusted price of a little under 200k as a worse case scanrio for your parents house and that will be as low as it will go for an average property in fair condition or a new property. My guess is 2001 numbers nominally, giving it a 1999 feel, 250-280 for their house as a realistic guess. With your plan, condo’s will be going for 80k and that is too close to the median income. Think of rents as the floor, rent didn’t go crazy and people in this area are comfortably affording $1000 to $2000 in rent. If rent goes down, it only drops a little so you have to look for the floor at the point that zero down is cost neutral to buy (not that there will be zero down loans and don’t use the pmi for a zero down but don’t factor downpayment when determining the number for cost neutral). So a $1500 a month renter that is comfortable with their rent will buy it or an investor will buy it when it crosses a line, for 1500 that line is between 150k to 225k based on variables for a particular property (hoa, taxes, and other carry costs). You have to factor the thinking, ability and behavior of others when determining a floor price.

You parents house at 140k is (140k for 30yrs@6%=$839 a month P&I) so let’s say I rent it for 1500, my income tax deduction is roughly equivalent to the taxes and insurance so I can buy it for $839 or rent it for $1500. That is also just a formula counting nothing down, with 28k down (20%) my loan is 112K and I’m paying $671

If interest rates double, all these numbers are moot but when you get inside the numbers you will see that a return to 140k for a 1800 sq ft. sfr is a pipe dream. So, “yeah, right” is the correct response.

[temeculaguy]

I agree with paramount’s summary, “yeah, right.” Marion, it’s anyone’s guess what price level year equivalent we will reach but returning to 1997 nominal prices is too far fetched. If you go back ten years in pricing and count inflation, then they would actually be far worse, since there was no appreciation from 1992 to 1997, that guess would put you in the 1980’s and that is just silly. It’s going to land somewhere between 1999 and 2002 nominally. That would give you an inflation adjusted price of a little under 200k as a worse case scanrio for your parents house and that will be as low as it will go for an average property in fair condition or a new property. My guess is 2001 numbers nominally, giving it a 1999 feel, 250-280 for their house as a realistic guess. With your plan, condo’s will be going for 80k and that is too close to the median income. Think of rents as the floor, rent didn’t go crazy and people in this area are comfortably affording $1000 to $2000 in rent. If rent goes down, it only drops a little so you have to look for the floor at the point that zero down is cost neutral to buy (not that there will be zero down loans and don’t use the pmi for a zero down but don’t factor downpayment when determining the number for cost neutral). So a $1500 a month renter that is comfortable with their rent will buy it or an investor will buy it when it crosses a line, for 1500 that line is between 150k to 225k based on variables for a particular property (hoa, taxes, and other carry costs). You have to factor the thinking, ability and behavior of others when determining a floor price.

You parents house at 140k is (140k for 30yrs@6%=$839 a month P&I) so let’s say I rent it for 1500, my income tax deduction is roughly equivalent to the taxes and insurance so I can buy it for $839 or rent it for $1500. That is also just a formula counting nothing down, with 28k down (20%) my loan is 112K and I’m paying $671

If interest rates double, all these numbers are moot but when you get inside the numbers you will see that a return to 140k for a 1800 sq ft. sfr is a pipe dream. So, “yeah, right” is the correct response.

[temeculaguy]

I agree with paramount’s summary, “yeah, right.” Marion, it’s anyone’s guess what price level year equivalent we will reach but returning to 1997 nominal prices is too far fetched. If you go back ten years in pricing and count inflation, then they would actually be far worse, since there was no appreciation from 1992 to 1997, that guess would put you in the 1980’s and that is just silly. It’s going to land somewhere between 1999 and 2002 nominally. That would give you an inflation adjusted price of a little under 200k as a worse case scanrio for your parents house and that will be as low as it will go for an average property in fair condition or a new property. My guess is 2001 numbers nominally, giving it a 1999 feel, 250-280 for their house as a realistic guess. With your plan, condo’s will be going for 80k and that is too close to the median income. Think of rents as the floor, rent didn’t go crazy and people in this area are comfortably affording $1000 to $2000 in rent. If rent goes down, it only drops a little so you have to look for the floor at the point that zero down is cost neutral to buy (not that there will be zero down loans and don’t use the pmi for a zero down but don’t factor downpayment when determining the number for cost neutral). So a $1500 a month renter that is comfortable with their rent will buy it or an investor will buy it when it crosses a line, for 1500 that line is between 150k to 225k based on variables for a particular property (hoa, taxes, and other carry costs). You have to factor the thinking, ability and behavior of others when determining a floor price.

You parents house at 140k is (140k for 30yrs@6%=$839 a month P&I) so let’s say I rent it for 1500, my income tax deduction is roughly equivalent to the taxes and insurance so I can buy it for $839 or rent it for $1500. That is also just a formula counting nothing down, with 28k down (20%) my loan is 112K and I’m paying $671

If interest rates double, all these numbers are moot but when you get inside the numbers you will see that a return to 140k for a 1800 sq ft. sfr is a pipe dream. So, “yeah, right” is the correct response.

[temeculaguy]

Cardiff, great point, scams often require trust. Familiarity or similarity is the favored route. Race and Religion are common factors, many victims of any scam are lulled into it because the scammer has something in common with them in order to break down their defenses. Even most crimes are commited within one’s social, racial or religious group because people let down their guard when dealing with one of their own.

Conned, don;t worry about raising too much money for the education campaign to protect others, I’ll give you the entire program for free. It’s a two step, 30 second program.

“Don’t buy what you can’t afford.”

“Always look for investments, never let them look for you.”

You can even perform a scientific test with a small sum of money, let’s say $200. Invest $100 in something you find (an account or bond at the bank, a stock or index fund that you research and buy online) and invest the other $100 in something an a friend, aquaintance or telemarketer presents to you when you weren’t looking for it. After five years, see which one has more value, it will be the one you found and not the one that found you. $200 and you will have learned more than I learned in college, try it.

[temeculaguy]

Cardiff, great point, scams often require trust. Familiarity or similarity is the favored route. Race and Religion are common factors, many victims of any scam are lulled into it because the scammer has something in common with them in order to break down their defenses. Even most crimes are commited within one’s social, racial or religious group because people let down their guard when dealing with one of their own.

Conned, don;t worry about raising too much money for the education campaign to protect others, I’ll give you the entire program for free. It’s a two step, 30 second program.

“Don’t buy what you can’t afford.”

“Always look for investments, never let them look for you.”

You can even perform a scientific test with a small sum of money, let’s say $200. Invest $100 in something you find (an account or bond at the bank, a stock or index fund that you research and buy online) and invest the other $100 in something an a friend, aquaintance or telemarketer presents to you when you weren’t looking for it. After five years, see which one has more value, it will be the one you found and not the one that found you. $200 and you will have learned more than I learned in college, try it.

[temeculaguy]

Cardiff, great point, scams often require trust. Familiarity or similarity is the favored route. Race and Religion are common factors, many victims of any scam are lulled into it because the scammer has something in common with them in order to break down their defenses. Even most crimes are commited within one’s social, racial or religious group because people let down their guard when dealing with one of their own.

Conned, don;t worry about raising too much money for the education campaign to protect others, I’ll give you the entire program for free. It’s a two step, 30 second program.

“Don’t buy what you can’t afford.”

“Always look for investments, never let them look for you.”

You can even perform a scientific test with a small sum of money, let’s say $200. Invest $100 in something you find (an account or bond at the bank, a stock or index fund that you research and buy online) and invest the other $100 in something an a friend, aquaintance or telemarketer presents to you when you weren’t looking for it. After five years, see which one has more value, it will be the one you found and not the one that found you. $200 and you will have learned more than I learned in college, try it.

[temeculaguy]

Cardiff, great point, scams often require trust. Familiarity or similarity is the favored route. Race and Religion are common factors, many victims of any scam are lulled into it because the scammer has something in common with them in order to break down their defenses. Even most crimes are commited within one’s social, racial or religious group because people let down their guard when dealing with one of their own.

Conned, don;t worry about raising too much money for the education campaign to protect others, I’ll give you the entire program for free. It’s a two step, 30 second program.

“Don’t buy what you can’t afford.”

“Always look for investments, never let them look for you.”

You can even perform a scientific test with a small sum of money, let’s say $200. Invest $100 in something you find (an account or bond at the bank, a stock or index fund that you research and buy online) and invest the other $100 in something an a friend, aquaintance or telemarketer presents to you when you weren’t looking for it. After five years, see which one has more value, it will be the one you found and not the one that found you. $200 and you will have learned more than I learned in college, try it.

[temeculaguy]

Cardiff, great point, scams often require trust. Familiarity or similarity is the favored route. Race and Religion are common factors, many victims of any scam are lulled into it because the scammer has something in common with them in order to break down their defenses. Even most crimes are commited within one’s social, racial or religious group because people let down their guard when dealing with one of their own.

Conned, don;t worry about raising too much money for the education campaign to protect others, I’ll give you the entire program for free. It’s a two step, 30 second program.

“Don’t buy what you can’t afford.”

“Always look for investments, never let them look for you.”

You can even perform a scientific test with a small sum of money, let’s say $200. Invest $100 in something you find (an account or bond at the bank, a stock or index fund that you research and buy online) and invest the other $100 in something an a friend, aquaintance or telemarketer presents to you when you weren’t looking for it. After five years, see which one has more value, it will be the one you found and not the one that found you. $200 and you will have learned more than I learned in college, try it.

[Author]

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