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.
I bookmarked the post, Brian...I am sure he has lots to teach.... and I want to learn...
Thanks so much man!!
=-)
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!
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."
Stan:
I'll make a post out of it.
Stan:
I'm sick with the flu so I offered a quick take on it. I hope you can get some feedback here
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
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!
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