11–20 of 193 posts
One reason: Almost half of their compensation packages are in Apple shares. So their lender, Opes Advisors, assigned the couple a financial adviser who used a software program to factor in debts and future income, including the stock, and the costs of education over the years for two young children. They don't go into much detail, but this part scares me. I'm assuming the "model" estimates some sort of future value f…
Why does someone like Zuck need a mortgage? Is it economically advantageous to him in a significant way?
Why does someone like Zuck need a mortgage? Is it economically advantageous to him in a significant way?
I have little interest in tying myself down by buying a house, but the part that's most appealing to me is the mortgage structure. You get to borrow money at a ~3.5% interest rate, in order to invest in something that produces 5-7% yearly returns. On average, this is going to make a ton of money in the long term. Is there any way to do something similar with stocks, without paying an insane amount of money in interes…
https://www.interactivebrokers.com/en/index.php?f=marginnew&...
One reason: Almost half of their compensation packages are in Apple shares. So their lender, Opes Advisors, assigned the couple a financial adviser who used a software program to factor in debts and future income, including the stock, and the costs of education over the years for two young children. They don't go into much detail, but this part scares me. I'm assuming the "model" estimates some sort of future value f…
But CA is a bit strange: A mortgage is non-recourse only in defined circumstances, eg when the mortgage is purchase money guaranteed by the property. It used to be that refis turn non-recourse debt into recourse debt.
I'd be very surprised if a loan backed by stock met the non-recourse requirements. So if you fail to pay, it's probable that they can go after your other assets.
fyi I haven't kept up with how things evolved out of the mortgage meltdown, so perhaps things have changed. But anyone taking such a loan should figure out their potential liabilities carefully.
One reason: Almost half of their compensation packages are in Apple shares. So their lender, Opes Advisors, assigned the couple a financial adviser who used a software program to factor in debts and future income, including the stock, and the costs of education over the years for two young children. They don't go into much detail, but this part scares me. I'm assuming the "model" estimates some sort of future value f…
what is a "no-resource state"?
http://www.nolo.com/legal-encyclopedia/whats-the-difference-...
Why does someone like Zuck need a mortgage? Is it economically advantageous to him in a significant way?
Check out my earlier comment. Any time you get to borrow money at 1%, you should take that loan and reinvest it in something (anything) that yields a higher return. It's almost like getting free money.
How does it make sense to tie up $1M+ at 1%? Are they turning around and selling the note to Fannie or Ginnie Mae? Unless we are Japan (and that's a slight possibility, but not likely IMO) this will be a total loser - not as bad as buying Spanish/French/Italian debt at negative rates, but pretty bad. Who else has friends going through all sorts of ridiculous acrobatics to buy houses in the bay right now? Where they a…
Why does someone like Zuck need a mortgage? Is it economically advantageous to him in a significant way?
The good news is that AMT comes along and typically eats up deducting property taxes and other things, but the mortgage interest itself still works.
I have little interest in tying myself down by buying a house, but the part that's most appealing to me is the mortgage structure. You get to borrow money at a ~3.5% interest rate, in order to invest in something that produces 5-7% yearly returns. On average, this is going to make a ton of money in the long term. Is there any way to do something similar with stocks, without paying an insane amount of money in interes…
Past performance is no guarantee of future performance.
You're also ignoring the carrying costs of a house.