Investment Advice for the Perpetually Moronic

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Mortgage and Lending with San Diego VA Home Loans/858-777-9751

I haven't been hiding my out and out admiration for my co-contributor on Bloodhound Blog, and new Active Rainer, Michael Cook.  He writes amazing things about investing and draws from his studies as a graduate business student at Cornell and his practical experience as an investor.

He's young and polite.  He knows more than you but never flaunts it.  Here's a kid who wears his education like his watch; for use and not for show.  Jeff Brown complimented him by saying he was a "rare breed- a highly intelligent young man who doesn't know it all".

Today, Michael slid a great article in about real estate investment theories that can actually make you money. Wholly impressive considering he's trying to keep the professors at Cornell happy during mid-term exam week.

Here's the coolest part about Mike; he's walked the walk.  He is an active investor.  He's a great writer, too.  He has the ability to translate complex theories into tips for those of us that may not understand what "delta' means or how interest rates affect cap rates.

I mentioned he's an active investor.  Don't read him because you think he could be a client one day. Read Mike because you'll probably be retired in 15-20 years and living off your investment properties.  Get to know how he thinks today.

He may be the Fed Chairman tomorrow.

 

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Rainmaker
613,535
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS
He's given a very concise guide for investment in real estate - we should pass these rules on to our investors - as well as giving them contact information for a "good consultant".
Mar 09, 2007 05:26 AM #1
Rainmaker
468,988
Alexander Harb
Knights Investing - Mesquite, TX
Dallas, Texas Real Estate Investing

I bookmarked the post, Brian...I am sure he has lots to teach.... and I want to learn...

Thanks so much man!!

=-)

Mar 09, 2007 05:33 AM #2
Rainer
100,192
Kaushik Sirkar
Call Realty, Inc. - Chandler, AZ
I have read a few of Michael's posts on bloodhound and what I particularly enjoy is the feeling that Michael has opened up a portion of his mind and you are looking right into it.  Very clear cut and well thought out writer.
Mar 09, 2007 05:52 AM #3
Rainer
56,446
Calie Waterhouse
Chandler, AZ
Community Builder

I agree with Kaushik.  I stumbled upon Michael's blog back in February and was instantly impressed.  His writing style is clear, concise and easy to understand.

(Now, someone needs to show Michael how to update his profile ;)

Thank you for sharing,  Brian. I know I could definitely learn a thing or two from all of you!

Mar 09, 2007 02:41 PM #4
Rainmaker
387,867
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!
Brian,  This was a very good recommendation.  I read Mike's article on Bloodhound Blog & a related article he wrote on Mortgage Tips...all excellent.  I have bookmarked for future reference.  Thank You.
Mar 11, 2007 02:47 PM #5
Anonymous
Stan

Brian,

On a message board, someone posted the following scenerio and asked for feedback.  It's caused quite a bit of discussion and diverse opinion.  WITHOUT giving legal and specific advice.....what's your general feel for whether this is legal?  I say it's not........or if for some reason it skirt's the law, it sure will raise eyebrows and questions with the IRS.  Rather than share a "feeling", I thought I'd check with the most opinionated broker.  :)

Any thoughts are appreciated,

Stan

The Question:

"My daughter and son-in-law will be purchasing our (wife and I) investment home. They currently rent it with option to buy. I wanted to run the following scenario by you regarding their loan. The purchase price is $140,000.

The lender is splitting up the $140,000 loan as follows:

1st Mortgage: $112,000 (80%)
2nd Mortgage: $28,000 (20%).

On closing day we will receive $112,000 (instead of $140,000) and
offer them a "gift of equity" of $28,000. Then 1 week later, the kids will take out a 2nd mortgage for $28,000 and turn around paying us back the remaining equity of $28,000. By doing this, they will get favorable rates on the 1st mortgage and not have to pay PMI. For us, it seems to be a wash whether it is done this way in parts, or one shot. However, there might be tax consequences.

What might these be? Is this practice legitimate? BTW, we will have lived in this house 2 out of the past 5 years."

Mar 12, 2007 12:14 PM #6
Rainmaker
314,185
Brian Brady
San Diego VA Home Loans/858-777-9751 - San Diego, CA
858-777-9751

Stan:

I'll make a post out of it. 

 

Mar 12, 2007 01:14 PM #7
Rainmaker
314,185
Brian Brady
San Diego VA Home Loans/858-777-9751 - San Diego, CA
858-777-9751

Stan:

I'm sick with the flu so I offered a quick take on it.  I hope you can get some feedback here 

Mar 12, 2007 01:27 PM #8
Rainer
41,109
Dominick Gaccino
Dominick gaccino - Peekskill, NY

well i got a bunch of FC leads if he wants to invest

 

tell him to contact me

 

DOMINICK GACCINO

dgaccino@yahoo.com

First Suffolk Mortgage Corp

May 08, 2007 01:54 PM #9
Rainer
77,324
Yvonne Root
rooms b.y. root - Prescott, AZ
Home Stager - Northern Arizona
Brian, When I read your title I thought you were talking to me so I didn't bother knocking -- just came on in. Now I have to go find another great person to read. What is a perpetual moron to do when she has so much good material right at her fingertips?
May 08, 2007 02:41 PM #10
Rainmaker
314,185
Brian Brady
San Diego VA Home Loans/858-777-9751 - San Diego, CA
858-777-9751

That was funny, Yvonne! 

Actually, Michael does an excellent job of explaining REI to people in plain spoken terms. He's one of my favorites!

May 08, 2007 06:08 PM #11
Rainer
132,211
David A. Podgursky PA
THE PODGURSKY GROUP @ Re/Max Direct - Boynton Beach, FL
THE PODGURSKY GROUP - Make the Right Move!

wouldn't it be something to have the next fed chairman in the Rain?

what about if we could get him on the take too?! haha

I'm going to read now

May 10, 2007 05:40 AM #12
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