Saturday, November 21, 2009

Never mind the Viper.

I don't know about the rest of you guys, but I had several different people during the boom years tell me I should get 'into' the housing game. I suppose, since I own a business, they actually thought I had money.

Anyway, about the time someone like me is told I should get 'into' something, is about the time someone like me shouldn't get 'into' something.

People were telling me it was stupid of me to be leasing a store space instead of buying. But even then I was aware that the time to buy commercial real estate was looonnnggg past.

If someone tells you it's "easy", run don't walk the other way....

I feel really fortunate that I had a real estate guy lead me to a good mortgage broker and I got the standard 30 year fixed rate with taxes and insurance included. I wasn't all that aware of the dangers back then, but I knew I wanted a 'fixed' rate.

I was also fortunate that because we started shopping in January, 2004, with snow still on the ground, we were more or less paying 2003 prices -- the big run-up in prices started only a couple of months after we finalized the purchase.

Our home equity line of credit, (a year and half later) however, was a little too manipulated. Interest only for five years -- we're fortunate that we'll be able to pay it in full before it comes due. I'm intending to pay off our house in 15 years, instead of 30. And I'm going to absolutely insist that I be allowed to make two payments per month. I've asked over the phone, but nothing came of it.

Handing them a big check ought to have a salutary effect. But I'll keep going up the channels until I get it done.

All this is a roundabout way of commenting on the recent arrests of Desert Sun people.

If there is one thing that owning my own business has taught me is that nothing is easy; that immediate gratification usually has a higher price in the long run. I think there was a lot of smudging of economic details (doing it on a computer you don't see the tale-tell erasures on the income line) going on just about everywhere by just about everyone.

How bad do you have to be to stand out in that out of control system?

Bad enough to drive around in a Ferrari and a Viper.

How stupid do you have to be to be caught?

Stupid enough to buy a speed boat.

Selling houses. In Bend.

Yeah, no one would notice that.

1 comment:

blackdog said...

"How bad do you have to be to stand out in that out of control system? Bad enough to drive around in a Ferrari and a Viper. How stupid do you have to be to be caught? Stupid enough to buy a speed boat."

There have been no tax evasion charges against these guys yet as far as I know, but I understand the IRS is on their asses. Suddenly going out and buying Ferraris and Vipers is a great way to attract the IRS's attention. As you say, dumb, dumb, dumb ...