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He has 9 homes in foreclosure- what???
05-12-2008, 04:06 PM
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#1
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Recycles dryer sheets
Join Date: Jan 2007
Posts: 284
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He has 9 homes in foreclosure- what???
Just another story of poor investment decisions and greed getting the best of someone:
California man losing nine homes in mortgage mess | Markets | Bonds News | Reuters
Hard to believe he is very good as a software engineer if this is what he did with his family's security.
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05-12-2008, 04:19 PM
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#2
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Full time employment: Posting here.
Join Date: Apr 2006
Posts: 877
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Interesting time to start a new business - coming off a bankruptcy. Where is he going to get the $ to get a business off the ground? I don't think anyone is going to loan him the money. I'm not sure this guy has much common sense. I feel bad for his wife and baby.
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05-12-2008, 04:26 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 2,358
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Just another story of poor investment speculation decisions and greed getting the best of someone.
"negative amortization loans"! 
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
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05-12-2008, 04:28 PM
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#4
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Recycles dryer sheets
Join Date: Jan 2007
Posts: 284
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When I saw he grew up in Santa Cruz, everything seemed to come into fuzzy, hazy focus......
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05-12-2008, 04:31 PM
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#5
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Full time employment: Posting here.
Join Date: Mar 2005
Posts: 927
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He had $800K in stock options and he put it all into real estate  ?
Gad.
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05-12-2008, 04:34 PM
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#6
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Recycles dryer sheets
Join Date: Jan 2007
Posts: 284
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I was incorrect, he wasn't a software engineer, he was a project manager. Doesn't sound like he knows how to do any research or simple analysis. I'd hate to have to work on one of his "projects".
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05-12-2008, 04:43 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,396
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Isn't it cute that he released a "self-portrait" of himself and his wife and baby and his dog? I think he subscribes to the view that all publicity is good publicity.
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05-12-2008, 04:51 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 2,358
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 Quote:
Originally Posted by JustCurious
Isn't it cute that he released a "self-portrait" of himself and his wife and baby and his dog?
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Nice haircut! 
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
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05-12-2008, 05:45 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Nov 2005
Location: North of Montana
Posts: 2,767
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At least he is blaming nobody but himself.
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
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05-12-2008, 05:45 PM
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#10
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Recycles dryer sheets
Join Date: Jan 2007
Posts: 284
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Easy come, easy go.....
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05-12-2008, 06:32 PM
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#11
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Recycles dryer sheets
Join Date: Jan 2008
Posts: 160
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Now I don't know this guy, so maybe I''m wrong. But it looks like he came from an environment which rewards overly aggressive, borderline reckless with 800K of stock options, so he did the same foolishly aggressive things with real estate investing. Owns single family houses all over in different states using as much leverage as he could with negative amortization loans -- and he says now he did it all knowingly because he expected the market to crash (just not this much). I'm glad I never worked on any projects with him. He sounds like a macho idiot. There were plenty of greedy speculators caught in this downturn, but he's a real poster child.
Too bad. 800K stock plus other savings in his early 30s. He'd be sitting pretty right now if he didn't risk it all for some mega-score.
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05-12-2008, 10:26 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: St. Louis
Posts: 2,179
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My favorite line:
"On the surface it looks like total devastation but it's just the opposite. I'm confident our lives will be much, much richer as a result."
So you're better off than having $800k because.....you now know how to make $1.6M in real estate?
It's one thing to be rash enough to buy 9 homes at the top of the market with (presumably) most of his net worth....it's another to try and lie to yourself by saying "I"m much, much richer as a result despite what APPEARS to be total devastation". The only reason he feels so good is because of his "confidence" - the same "confidence" that led him to lose everything to begin with!
Perhaps he has a book deal/reality TV show in the works that no one knows about yet? 
__________________
Dryer sheets Schmyer sheets
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05-13-2008, 05:19 AM
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#13
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 24,534
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People like him are good. He'll have to keep working until he drops, and keep paying into SS so I can go fishing or bike riding, which is what I'm going to do today.
__________________
When I was a kid I wanted to be older. This is not what I expected.
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05-13-2008, 05:55 AM
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#14
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Recycles dryer sheets
Join Date: Jan 2006
Posts: 247
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If you're going to be a fool at least have some integrity. He is going to go bankrupt and give up BEFORE he gets foreclosed on. Waaaah, poor baby. He should suck it up and work out the properties. If they force him into bankruptcy then OK, but he is going to be a quitter too. High correlation between being a quitter and a successful entrepreneur 
__________________
David
I get up at 7 yeah, and I go to work at 9. Got no time for livin yes I'm workin all the time. Seems to me I could live my life a lot better than I think I am. I guess thats why they call me the Working Man.
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05-13-2008, 06:35 AM
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#15
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Thinks s/he gets paid by the post
Join Date: Nov 2005
Posts: 1,519
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Quote:
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"Everyone stumbles. I'm not going to hide or run or live in denial, or with regrets," Forgaard told Reuters in an interview. "On the surface it looks like total devastation but it's just the opposite. I'm confident our lives will be much, much richer as a result."
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How can Forgaard be so confident? Answer: he's good friends with Ben Bernanke. All Forgaard has to do is go whining to Bernanke that his looming bankruptcy is a threat to the American banking system, and Bernanke (compassionate conservative that he is) will immediately step in and transfer responsibility for his debt to the American taxpayer (think Bear Stearns bailout). 
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05-13-2008, 06:56 AM
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#16
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Thinks s/he gets paid by the post
Join Date: Mar 2005
Posts: 2,548
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I like this guys optimism ... but nobody hits the lottery twice (800k).
With 800k "invested" you'ld think he could ride this thing out. Even if it took a decade or more. Bankrupcy will definately delay his next venture.
At the risk of repeating myself ... I was upside down on 3 mortgages in the 90's. Ate crow for 12 years ... wrote small checks at my first 3 closings as a SELLER.
Eventually the tide returns.
__________________
FIRE'd since 2005
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05-13-2008, 07:45 AM
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#17
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 2,358
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Quote:
Originally Posted by DJRR
Waaaah, poor baby. He should suck it up and work out the properties. If they force him into bankruptcy then OK, but he is going to be a quitter too.
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Hey come on, have some pity.
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We're not going to be able to live in Santa Cruz, where I was born and raised, and live by the beach. And that was pretty tough to take.
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No beach house = life is not worth living!
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
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05-13-2008, 08:28 AM
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#18
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Recycles dryer sheets
Join Date: Jan 2008
Posts: 325
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"Where I went wrong is I invested heavily in an area that wasn't my passion and I had a really demanding full-time job so I couldn't pay attention to nuances, the little indicators telling you the housing market was going soft," he said. "I was in over my head."
Ah, he wasn't paying attention to the little indicators, the nuances. Also, it wasn't his "passion." So, what, he's saying that if he actually cared about keeping his houses he would be able to, it's just that he lacks the passion? Or he would have actually done some research into what he was investing his entire net worth? Really, the problem was in the "nuances?" Something tells me people like him may repeat the difficult lesson sometime in the future.
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05-13-2008, 09:38 AM
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#19
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gone traveling
Join Date: May 2006
Posts: 1,036
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I feel sorry for the dog.
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05-13-2008, 09:50 AM
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#20
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,030
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Dang - you guys are harsh. This guy stuck 10-40% down on the places and didn't bail out soon enough, or have the means to hold onto some of them (which i find odd). I don't know how the stock market is going to move, but have money in it anyway - don't see much difference there. (and some of our individual stocks like Costco are kicking the tail of the index funds i wisely put $$ in - which i hear about at home....) I respect his attitude more than the young Russian guy who bought about the same number of places with liar loans and deception and then put the blame mostly on the loan brokers - can't remember his site, but he was pretty famous a year or so ago.
And he's working that Lyle Lovett do!
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