I did look up his 3 properties in Cape Coral. As of October 2007, one of his properties is in some stage of foreclosure (there was a notice of default filed in Sep from the bank). One property is in both his and his wife’s name; the other two are just in his wife’s. I assume using her as the primary buyer (being a doctor) was the main way he was able to qualify for so many loans. I don’t believe there was any deception here–the Casey Serin comparison is only valid in that he bought a boatload of properties at the market peak in a short period of time.

He and his wife also own a house in San Diego that they bought for $680k in 2004, but Zillow valued it as high as $1M at the peak. So, he was also drawing from a HELOC to make some of these deal happen.

Anyways, even with a doctor’s salary, you can’t carry 10+ negative cashflow properties. Thus, they will probably lose one or more of their Cape Coral properties to foreclosure (as I said, one is already in that stage). His other investments will probably all tank as well–he bought way to close to the top of the market.

Anyways, I hope people reading about his story learn the lesson: real estate is NOT always a safe investment. Sometimes it can ruin you financially–even if you have a high income.

Which is why all the recent talk about bailouts and such fries me! Responsible people like us, who haven’t been able to buy our own house will now, not only still not be able to buy for a bit of time, but also be charged (via taxes) for all these jackasses who were looking for the quick fix or for themselves to be “The Joneses”. I find it impossible to feel sorry for any of them.

I have yet to see one of his “good” ideas. Lots of stupid, time wasting ones, but never a good one yet.

Chuck

Your kind forwarding of the monies will allow the great prefect of Mugumba Wara to purchase your many income properties at greatly inflated prices.

Do you agree to these terms?

Humbly,
Humble

C Serin has decided to auction off his hair in an attempt to raise some money. Unfortunately for Jeff, I think he’s already bald… no dice.

Chuck

http://www.websitetoolbox.com/.....id=1854186

Chuck

btw, looks like the LATimes blog featured you today, good job!

I have some juicy income properties in Nigeria. Wanna be my equity partner? We could own the entire country in 8.5 years!

I have a 9-figure apartment real estate port. accumulated over the course of decades. port. is 95% un-leveraged as debt as been amortized over the years. wealth has been created by carefully analyzing each transaction for value added possibilities. Not necessarily immediate- often a multi-year strategy would be required to stabilize a property- but always with a game plan. Never have I entered into a deal where negative leverage projects well into the foreseeable future. Absent some external demand factor- new net migration, big employment jump, etc what prompts you to believe that appreciation will outpace inflation and make up for the all the red ink?

Flip side- I really hope to see tremendous buying opportunities in southern california in the near future. If anyone spots good multi-family deals PLEASE tell me where to contact you and you will certainly be appropriately compensated. I can be your equity partner with experience.

Thanks for your attention.

HAHAHAHAHAHAHAHAAH SUCKER! He’ll lose like the rest of the idiots out there!

Pride goeth before the FALL !!!!

Remember in the late 80s/early 90s the big housing downturn was partly caused by the loss of so many defense jobs. How many jobs in Southern California are directly real-estate related? Once this bust starts picking up steam, there will be large scale job losses across the Southland.

The free money supply is drying up. GE’s subprime division just cut half their employees and tightened their standards: no zero-down loans anymore. Even if a potential buyer can only put down 10% of the average priced home (what is it, 550K in LA now?) most people don’t have that much cash on hand.

However, from an income perspective prices are out of whack.

Hence, the only consistent measure the FED uses for inflation is incomes. If they see income growth the tag it as inflation.

I think I’m begining to understand the deflationary spiral more and more.

Even though the FED will try to inject liquidity in to the system. It will not reach consumers on the bottom end and show up as income.

It shows up at the bank as more money to loan out.

What we will be seeing is horrible instability in our job situations. We will see the increased debt (easy money loans) as a death trap; because you might lose your income.

Small buisnesses will see that too.
Everyone will be unwilling to take on more debt because the few assets you have will get stripped away if you default.

That is the deflationary spiral. We have seen debt exhaustion in the form of IO/neg-am/ARM loans. Inability to service the debt.

Seems like we are on the brink of substantial deflation.

If that were the case, perhaps the attainable prices of yesteryear really are gone for good.