Watching a financial Train Wreck

[humandraydel]

Re: Watching a financial Train Wreck

For some reason this whole story seems contrived. If it's not, this guy is perhaps the stupidest person in the world. And he's still enamored with Kiyosaki? please...

[shelbylovesmelby]

Re: Watching a financial Train Wreck

I agree I think he could of made a go of it just not to get too far over your head... like start @ 1 @ a time & go from there.

Like everyone else said what kind of DTI does this guy have that he can have 8 houses to manage & try to "flip"

The news has said nothing but negative things lately in the houseing market that it's a buyers market not a sellers + w/ the darlings who got the ajustable mortgages are just kicking themselves & hard!

[markio26]

Re: Watching a financial Train Wreck

the housing market is pretty slow in ohio... i see homes sitting for 3 yrs. below market value... i think alot of ppl. are moving out of our cleveland area.......

[starving_student]

Re: Watching a financial Train Wreck

I think flipping is immoral. Those flip this house shows are driving me nuts. How can people be so full of tehmselves and so concern about making so much profit. Housing is a necessity. It's a need not a want, why do people try to make fortune out of that....

[rob62521]

Re: Watching a financial Train Wreck

[QUOTE=disneysteve].

Years ago, we used to joke that the only way to qualify for a bank loan was to prove that you didn't really need the money. Today, anyone with a pulse can borrow multiple times their annual income with no problem. It's really insane.



The rule of thumb for buying a house used to be 2.5-3 times income. Today, people are routinely buying homes for 4-5 times income and having no trouble at all getting loans.

QUOTE]

You hit the nail on the head. A few years ago when we needed to find the balance to pay off our house, we had to wait while the bank figured it out and called us. When I wrote the check to pay it off, while the personal banker was filling out the papers, her next comment was, "Don't you need a home equity loan to fix up the house you just paid off?"

[LuckyRobin]

Re: Watching a financial Train Wreck

I guess its really hard for me to understand how someone could be so financially backwards. If you don't have experience with something, why on earth would you think that you'd be successful enough to do it 8 times right away? Buying one as a "starter" would have been a lot smarter. Then he could have seen if he was any good at it, if it was something that he enjoyed doing, and if he really could turn a profit doing it.

Yes, the credit industry is quite responsible for some of the mess, but first and foremost its always, always caveat emptor (let the buyer beware) before carpe diem (seizing the day).