tex_phil

I'd buy a 500k house, a m5 with a ton of mods, pay off my parents debt/house, and my brothers.

porsche911targa

Whatever happened to "plastics' and "pork bellies" as investements???

sdg1871

Hmm, is that an answer to "what would you do with $5 million" or "who would you do if you had $5 million?"

CWS530

Oh, no doubt. There's money everywhere, and in my experience anyway, professionals in southern states dress much more formally.

craigm1841

i was suprised when i saw he said he was in little rock, and i also never put 1 and 1 together. always saw his name bespoke, but for some reason didnt associate with the fact he may make/tailor suits. i may have asked earlier about the suit business in arkansas.

anyways, i am suprised to hear you think more people dress formally in the south. in my experience in different southern cities throughout GA, SC and TX, i would initially disagree, however, I think it is society as a whole becomming more casual. but my 7 years in the south, i rarely saw suits. i have seen people in a dale ernhardt jr jackets at a wedding. a NICE wedding too. many places in the south stress business casual in the workplace due to the climate. this extends through the winter.

i personally think nothing looks sharper then a nice tailored suit. I would wear one every day if i had a reason to and had some more! i usually will wear a suit on monday maybe tuesday too. by friday i am not even donning a tie.

CWS530

Well, I was referring more to professionals, as I said. Many places I go, doctors, lawyers, accountants, educators, businessmen, etc. consider khakis and a polo business attire. In southern states, in my experience, clients expect a person of a certain level of society to dress accordingly. Find me a southern gentleman who doesn't live most of the summer in seersucker or linen suits, and I'll show you a guy who's not dressing accordingly.

craigm1841

find me a southern gentleman in 2009 and i will show you his wheelchair and estimate how much longer he is going to live. things have changed. it is a shame.

but you are right. a "southern gentleman" would dress as you described. there just isnt many anymore. they are old men, the southern gentleman persona hasnt trickled down through generations.

v_therussian

so we went from moving to Italy and chasing chicks to finding southern gentlemen in 2009?

something I should know about you fellars?

sdg1871

EersNC

As Lee Corso would say, "Not so fast, my friend!"

$8,000,000 community purchased at a 10% cap rate = $800,000 Net Operating Income.

$6,000,000 mortgage (75%) from Fannie Mae or Freddie Mac multifamily--yes, they're still lending, and yes, you can still get 75% LTV on acquisitions, and interest rates are in the low- to mid-6.00% range, with 30-yr amortizations and a 10-year call. If that fails, you can turn to a HUD originator and get an FHA-insured loan up to 85% of the purchase. Here's a little from Freddie Mac: http://www.freddiemac.com/multifamily/term..._fixedrate.html

(Incidentally, the multifamily groups for Fannie and Freddie were quite successful flying under the radar, and didn't participate in the lending boom in commercial real estate between 2004-2007...they were still active, but they had their good clients and made what were, at the time, conservative loans. They've also been one of the few profitable divisions among the GSAs.)

Back-of-the-envelope calculations here...Debt service on that mortage, with a 6.25% interest rate would run $443,000/year. You'd pay $373,000 in interest in the first year, so you would have taxable income of approximately $427,000, which, with 30% taxes, is roughly $300,000 Net Income. $300,000 / $2,000,000 investment = 15% Year 1 return. You would have $70,000 in amortization as well, which would cut into your cash-on-cash a little, but it is still building your equity.