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Old 12-07-2009, 11:17 AM
 
762 posts, read 1,562,724 times
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He was a blackjack dealer. He retired 3 times and has a great income but 9k? I just cannot get my head around that. What did he finance? 2 million? Olcapt, would that be about right?
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Old 12-07-2009, 11:24 AM
 
Location: Las Vegas
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WOW! I can't even imagine ever being able to sleep if I had debt like that....
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Old 12-07-2009, 12:41 PM
 
Location: Silicon Valley
3,683 posts, read 9,863,936 times
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Quote:
Originally Posted by skisickie View Post
He was a blackjack dealer. He retired 3 times and has a great income but 9k? I just cannot get my head around that. What did he finance? 2 million? Olcapt, would that be about right?
More like 1.5M, also depends on whether that includes property tax or not.
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Old 12-07-2009, 01:23 PM
 
Location: Portland, OR / Las Vegas, NV
1,818 posts, read 3,838,016 times
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Lets see, $9K X 12 months = $108K in payments. If he financed I think you can only have like 30-40% of your income be for your housing. Maybe olcpnt or 007 can verify that number. If dealers are making that much, I'm in the wrong business. $9K a year is a reasonable (very) house payment.
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Old 12-07-2009, 01:32 PM
 
391 posts, read 1,714,036 times
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Was probably an adjustable rate negative amortization loan, maybe originally @900k that has seen another 100k tacked on in principal the last few years and now has an interest rate of 10-12%. If anyone should walk away, he'd have to be a prime candidate.
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Old 12-07-2009, 01:41 PM
 
1,410 posts, read 3,320,287 times
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28% of your income, including taxes and insurance, can be used towards a house payment. Lets for the sake of trying to figure this out say he financed when interest rates were 6%. That means for every $100K he borrowed, his payment without anything else would be $600 a month. Divide $600 into $9,000 and that comes to about $1.5. Would probably be less if the interest rate were higher and taking in account taxes and insurance.
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Old 12-07-2009, 01:45 PM
 
Location: Portland, OR / Las Vegas, NV
1,818 posts, read 3,838,016 times
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So how much would a dealer have to make a year to qualify for a $9k a month payment?
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Old 12-07-2009, 01:49 PM
 
391 posts, read 1,714,036 times
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I, sn't the federal deduction for mortgage interest capped at $1.1M principal? Doesn't make any sense to me why you'd take out more especially if you are already stretching.

Most likely explanation is the guy was bs'ing trying to feel important somehow, or just looking for reaction to liven up things a bit. I suppose it's also possible the guy had a substantial nest egg which is why he was able to take out such a large loan. Might also explain why he hasn't walked away and if both his house value and nest egg have taken a hit, would also explain why he hasn't refinanced.
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Old 12-07-2009, 02:15 PM
 
2,457 posts, read 4,724,740 times
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Originally Posted by bledsoe3 View Post
Lets see, $9K X 12 months = $108K in payments. If he financed I think you can only have like 30-40% of your income be for your housing. Maybe olcpnt or 007 can verify that number. If dealers are making that much, I'm in the wrong business. $9K a year is a reasonable (very) house payment.
If he was dealing in a high end property then about 125K a year is average.
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Old 12-07-2009, 03:16 PM
jpk
 
Location: Redmond, WA / Henderson, NV
531 posts, read 1,864,182 times
Reputation: 175
Maybe he was just hoping to encourage some sympathy to get better tips?
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