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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (99104)	1/5/2008 10:58:32 PM
From: neolib	Read Replies (1) \| Respond to of 306849

My bad. I read a article once on him which claimed he had borrowed xx millions to get his first stake and eventually owned the whole enchilada. If it happened differently, I wouldn't know. As to his mismanagement, I don't know about that either. It does appear he is worth considerably more today than when he started. I have friends who live right on the edge of some of his open space land, and it strikes me as valuable land to own. Having accomplished this, Joan and her mom then sued Brenn for "Fair Value" for the stock they had previously tendered to Brenn - something which they were entitled to as minority shareholders under Michigan law, where the Irvine Company had been incorporated. They received hundreds of millions more from Brenn. Bren did have to take out a loan to make that payment. Unbeknown to Brenn, this was Joan's plan from the beginning. Has it occurred to you that perhaps Joan and Athalie Smith were the ones who mismanaged their lot in life? But that aside, the vast majority of us non-billionaires in fact use debt, and not equity investment, to make our lives much nicer (think buying a home), and in fact for some of us, it is a means to develop businesses which later reward us with substantial income. I've purchased two pieces of real estate (which I still own) and started three businesses (which I & my wife still own and run) and all these transactions were done with our own money as well as some debt. No equity investment. As a result I own 100% of them. Not to say it can't be done the other way if that is what you choose. But I've found debt to have been very useful in getting to where I'm at.