Jay Cutler - Broke or Wealthy with his investments?

[Tito24]

im willing to sell my flex magazine collection on ebay and donate the money to jay

[littleguns]

so maybe Jay will indeed compete next year if he is truly broke.

My brother in law is a real estate agent in Vegas, market was bad but is on a huge upswing. Inventory is very low thus prices are rising

[WOOO]

perhaps he shouldnt have "bought" a mortgage for a house that could house 20 people comfortably, and maybe he shouldnt have wasted money on many different exotic cars at the same time.

nobody needs a ferrari to get to the gym, and nobody needs a residence bigger than some feudal times elites had.

i hope it was really worth it impressing his ugly wife with that comfort.

Classic.

[bigkid]

Jay put 85% of his wealth into Vegas real estate in the mid 2000's. Do you have any idea how much of a hit he took staying in Vegas? Everybody in the industry told him to get the fukc out of Vegas but he thought he knew something they didn't. There is no assets left bro.

Wow, you're really talking out of your ass.  A record search shows this as Jay's Las Vegas real estate history:

House # 1  bought in 2002 for 431,694  sold in 2007 for 865,000
House # 2  bought in 2004 for 259,000  sold in 2005 for 280,000
House # 3  bought in 2004 for 379,840  sold in 2005 for 439,900
House # 4  bought in 2004 for 380,840  sold in 2005 for 445,000
House # 5  bought in 2007 for 1,570,000 not sold yet, but probably worth around 800 at this point.

The only house Jay has in Vegas is his primary residence.  If he sells it, he's gonna take a big hit on it, but he doesn't have some huge Las Vegas real estate portfolio.  Its so funny on this board.  When the talk turns to money, investments and real estate, you can always tell who has money and who are the bums.

[bigkid]

His house is probably worth 750,000-800,000.

[OneMoreRep]

wow, mortgage, 3200usd.renting 4300usd.

it would require 10 mcdonalds employees to rent this out,if theyd like to share.

Wait, you mean to tell me that you find a mortgage for $3,200/month to be too high?

"1"

[bigkid]

what means a house is worth?

there is no such thing as worth, theres only demanded price.

its worth as much as the next sucker is ready to pay for it.

you should say , there will be a sucker who will pay 800k for it.

sorry, i mean, there will be a sucker who will risk everything and get a mortgage on this.

lets not pretend everyone is rich and owns their house full out, bc thats not the reality.
uhm, well, in the real world, yes, its ridiculous.

i know, the interest rates are low in usa, but 3200 is a freaking salary.

i think you know that a mortgage rate, if paid, isnt deducted from the total price, you simply pay the mortgage loans interest rate, which is 3200usd a month.

Worth = material or market value.  Stop trying to look smart.

[OneMoreRep]

uhm, well, in the real world, yes, its ridiculous.

i know, the interest rates are low in usa, but 3200 is a freaking salary.

i think you know that a mortgage rate, if paid, isnt deducted from the total price, you simply pay the mortgage loans interest rate, which is 3200usd a month.

$3,200 is NOT a high mortgage.

A $3,000/month mortgage is what you would pay for a house that costs about 450K.  For every $150K, you essentially pay $1000/month on mortgage.

That said, at least where I am from (NYC), 450K will practically get you a one-room shack.  That price is very low in comparison to what the average house in any major US city will go for.

Unless you plan on living in a very rural area of the USA, 450K won't go very far.

"1"

[bigkid]

$3,200 is NOT a high mortgage.

A $3,000/month mortgage is what you would pay for a house that costs about 450K.  For every $150K, you essentially pay $1000/month on mortgage.

That said, at least where I am from (NYC), 450K will practically get you a one-room shack.  That price is very low in comparison to what the average house in any major US city will go for.

Unless you plan on living in a very rural area of the USA, 450K won't go very far.

"1"

What interest rates are you using?  You can borrow way more then 450,000 for 3,000 a month.

[Mr Anabolic]

Wow, you're really talking out of your ass.  A record search shows this as Jay's Las Vegas real estate history:

House # 1  bought in 2002 for 431,694  sold in 2007 for 865,000
House # 2  bought in 2004 for 259,000  sold in 2005 for 280,000
House # 3  bought in 2004 for 379,840  sold in 2005 for 439,900
House # 4  bought in 2004 for 380,840  sold in 2005 for 445,000
House # 5  bought in 2007 for 1,570,000 not sold yet, but probably worth around 800 at this point.

The only house Jay has in Vegas is his primary residence.  If he sells it, he's gonna take a big hit on it, but he doesn't have some huge Las Vegas real estate portfolio.  Its so funny on this board.  When the talk turns to money, investments and real estate, you can always tell who has money and who are the bums.

So, you're saying he's some type of real estate genius?  His current home lost almost HALF it's perceived value.  He's a speculator that lost... nothing more. 

RE is totally dependant on the "greater fool" principle.  There has to be some fool willing to pay more than what you paid.  Those days are over.  No more "easy credit" either.

You need jobs to sustain housing prices.  The government can only lie and prop things up so long.  The manufacturing jobs that left this country over the past 15 years are NEVER coming back.  The future of the US is very bleak.

[bigkid]

So, you're saying he's some type of real estate genius?  His current home lost almost HALF it's perceived value.  He's a speculator that lost... nothing more. 

RE is totally dependant on the "greater fool" principle.  There has to be some fool willing to pay more than what you paid.  Those days are over.  No more "easy credit" either.

You need jobs to sustain housing prices.  The government can only lie and prop things up so long.  The manufacturing jobs that left this country over the past 15 years are NEVER coming back.  The future of the US is very bleak.

Where did I say he was a genius?  I was simply disproving the myth that he has 85% of his net worth tied up in a huge Las Vegas real estate portfolio like it was being assumed.  He sold all his investment properties for a profit, before the crash.  Doing basic math, anyone can see he lost money overall bc his primary residence was bought at the peak.

[OneMoreRep]

What interest rates are you using?  You can borrow way more then 450,000 for 3,000 a month.

Where I am from in NYC, rates range between 3.31% APR - 4.53% and then you add the Taxes & Insurance rate of 1.3% and that's where you get those figures.

So, for instance, on a house that goes for $1,390,000 (Which is very common for a "decent-good" neighborhood in NYC), this is how a hypothetical breakdown would ensue for a 30-year fixed mortgage:

Price: $1,390,000

Down payment: 20% ($278,000)

Loan amount: $1,112,000

Interest rate (rate for the "better" neighborhoods, not even the best in NYC): 4.53%

Taxes & Insurance: 1.3% ($1,204/month)

Estimated payment: $6,858/month 

"1"

[bigkid]

Where I am from in NYC, rates range between 3.31% APR - 4.53% and then you add the Taxes & Insurance rate of 1.3% and that's where you get those figures.

So, for instance, on a house that goes for $1,390,000 (Which is very common for a "decent-good" neighborhood in NYC), this is how a hypothetical breakdown would ensue for a 30-year fixed mortgage:

Price: $1,390,000

Down payment: 20% ($278,000)

Loan amount: $1,112,000

Interest rate (rate for the "better" neighborhoods, not even the best in NYC): 4.53%

Taxes & Insurance: 1.3% ($1,204/month)

Estimated payment: $6,858/month  

"1"

Oh ok.  NYC is a great comparison to use when looking at the big picture of real estate.

[The Abdominal Snoman]

http://www.zillow.com/homedetails/4500-Palisades-Canyon-Cir-Las-Vegas-NV-89129/70057480_zpid/

He is selling his house

So there goes your HOME theory. Nobody buys a home to take a $800,000 loss. Jay told many people in his circle in 2006 that his home would be worth $3million in 5 years. lol

[Mr Anabolic]

Where did I say he was a genius?  I was simply disproving the myth that he has 85% of his net worth tied up in a huge Las Vegas real estate portfolio like it was being assumed.  He sold all his investment properties for a profit, before the crash.  Doing basic math, anyone can see he lost money overall bc his primary residence was bought at the peak.

 

Buying a house for $1.6 mil and selling it for $800 wiped out any "profits" he had.

I hope Jay has another skill set besides picking up heavy things and putting them down.

[OneMoreRep]

Oh ok.  NYC is a great comparison to use when looking at the big picture of real estate.

Well, it all depends on your preference.  

Like I said to Galeniko, if you don't mind living in a rural area or smaller metropolis, sure you can find a decent home that is not terribly expensive with moderate mortgage payments.

If you prefer the more "booming" areas like California, New York, Chicago, Boston, Wash DC  etc.., then the market won't be as kind.

"1"

[bigkid]

Buying a house for $1.6 mil and selling it for $800 wiped out any "profits" he had.

I hope Jay has another skill set besides picking up heavy things and putting them down.

Oh good.  You can do basic math too.  He also hasn't sold it yet anyways.

[The Abdominal Snoman]

very sad news, afterall he seemed to be a good guy with the enlarged heart on the right place.

lmfao

[Mr Anabolic]

So there goes your HOME theory. Nobody buys a home to take a $800,000 loss. Jay told many people in his circle in 2006 that his home would be worth $3million in 5 years. lol

When you hear people say delusional things like this, you KNOW the bubble is going to pop soon.  It's a great contrary indicator.

When the masses are lining up to buy up a specific asset, you should be selling it as fast as possible.

[bigkid]

When you hear people say delusional things like this, you KNOW the bubble is going to pop soon.  It's a great contrary indicator.

When the masses are lining up to buy up a specific asset, you should be selling it as fast as possible.

I'll definitely agree with that. I remember hearing all the meatheads in my gym talking about buying investment properties in 2006.  Should have been a huge red flag.

[The Abdominal Snoman]

Wow, you're really talking out of your ass.  A record search shows this as Jay's Las Vegas real estate history:

House # 1  bought in 2002 for 431,694  sold in 2007 for 865,000
House # 2  bought in 2004 for 259,000  sold in 2005 for 280,000
House # 3  bought in 2004 for 379,840  sold in 2005 for 439,900
House # 4  bought in 2004 for 380,840  sold in 2005 for 445,000
House # 5  bought in 2007 for 1,570,000 not sold yet, but probably worth around 800 at this point.

The only house Jay has in Vegas is his primary residence.  If he sells it, he's gonna take a big hit on it, but he doesn't have some huge Las Vegas real estate portfolio.  Its so funny on this board.  When the talk turns to money, investments and real estate, you can always tell who has money and who are the bums.

It doesn't show the apartment buildings he bought and other vegas investments he went in on with other people and took a bath on. You're only showing the houses he bought. There is way more to it

[JasonH]

Buying a house for $1.6 mil and selling it for $800 wiped out any "profits" he had.

I hope Jay has another skill set besides picking up heavy things and putting them down.

The property might have lost value but who cares? All Jay has to do is afford the mortgage payments and just live in the damn thing from now until the property market improves again (which it will).

It's not for sale so I'm assuming he can afford to live there. What about the initial deposit he put down on it when he bought it? For all you know, despite its loss in value it could still have significant equity. The smaller the initial mortgage, the less he has to fork out each month to maintain it. At that point, its loss in value is irrelevant.

[bigkid]

It doesn't show the apartment buildings he bought and other vegas investments he went in on with other people and took a bath

I had never heard about that before, but it very well could be true.

[The Abdominal Snoman]

The property might have lost value but who cares? All Jay has to do is afford the mortgage payments and just live in the damn thing from now until the property market improves again (which it will).

It's not for sale so I'm assuming he can afford to live there. What about the initial deposit he put down on it when he bought it? For all you know, despite its loss in value it could still have significant equity. The smaller the initial mortgage, the less he has to fork out each month to maintain it. At that point, its loss in value is irrelevant.

There isn't an investor on the planet that would tell him to hold on to it. That house will never be worth 1.5m again. Not unless Vegas has some massive oil reserves underground.lol

[Mr Anabolic]

The property might have lost value but who cares? All Jay has to do is afford the mortgage payments and just live in the damn thing from now until the property market improves again (which it will).

It's not for sale so I'm assuming he can afford to live there. What about the initial deposit he put down on it when he bought it? For all you know, despite its loss in value it could still have significant equity. The smaller the initial mortgage, the less he has to fork out each month to maintain it. At that point, its loss in value is irrelevant.

Makes payments on a house that lost 50% of it's perceived value?... ouch.  

How long do you think it will take for RE prices to come back to 2006 levels?  I would guess 10-15 years... another ouch.