Who’d a thunk it?
Continue reading Caveat Lector!
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Tag Archives: bank
False Security
Experts. OK. I understand what an expert is when it comes to a narrow field. Because it is possible to be “THE” man (or woman) in a concise area. But, when it comes to medicine- there’s renal, pulmonary, neurology, etc. You get the idea.
Continue reading False Security
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Your gross receipts may be underreported…
I warned you guys. The second the IRS was going to get their hands on the credit and debit card transactions. Moreover, they are right, as I said.
Continue reading Your gross receipts may be underreported…
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Surprise! You’re Sharing!
Truth is stranger than fiction. Especially, when we are talking about how banks (you know, the industry that basically tanked four years ago and you and I bailed them out, only to have them stab us in the back) are putting the screws to their customers. No, I am not going to talk about some new fee, how they change their policies willy-nilly to cost us money. Nope! I am going to explain how the banks save money- and put us at risk.
Continue reading Surprise! You’re Sharing!
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So you want to be a real estate mogul?
If you are considering the purchase of a property for investment, one you plan to rent to others, we need to talk. Too many folks buy these properties and then find that, unlike conventional businesses, rental property management has its own set of regulations- and tax considerations. (Part of the reason is that real estate businesses, while cash flow positive, often create negative income considerations for taxes, since depreciation can be a substantial factor. And, as opposed to other businesses that don’t show a profit for 3 of 5 years, these are allowed to continue and are not considered “hobbies”.)
Continue reading So you want to be a real estate mogul?
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What’s My Company Worth?
I have been participating in a discussion with other LinkedIn members about the valuation of new entities over the past week or so. Clearly, there is no hard and fast rule to this process- and, that’s mostly because we have no hard and fast ability to determine who is going to succeed in the long term. It’s a little easier to evaluate a going business, as long as we don’t try to discern how much the future will impact the value of the company right now.
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BankUnited’s Takeover Provides Astronomical Returns – but big costs for you and me (the US Taxpayer)
As we discussed in Parts 1 and 2, it sure looked like BankUnited was a “success” on paper. Its mortgage portfolio (the value of loans the bank held) had escalated from $ 6.1 billion in 2004 to $ 12.5 billion by 2007. (Unfortunately, some 70% of their entire portfolio was based upon Option ARM’s.) A few months later, the value of these Option ARM loans were equal to almost 6 X the entire capital held by the bank. (Capital is the money the bank has on hand to insure against failure; it is not the same thing as the bank’s assets [which would be the loans, in this case]- but if the assets are homes subject to mortgages that exceed their worth, you can see the obvious problems.) By the spring of 2008, 92% of BankUnited’s Option ARM’s were underwater. And in 2009, BankUnited was taken over by the Feds.
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This Bank is Going to Be a Real Pain-in-the-… And our pocketbooks
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Continue reading This Bank is Going to Be a Real Pain-in-the-… And our pocketbooks
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