I know<\/strong><\/span> a woman who lost with Madoff, and now she\u2019s doing the 1 percent CDs. I talked to another Madoff investor who said she had found a short-term investment that paid 20 percent. But for only 90 days. Twenty percent is 20 percent, doesn\u2019t matter how long a period. Twenty percent is crazy. \u201cThat\u2019s a lot of risk!\u201d I said.<\/p>\nI have a friend who went in for CDOs (Collaterized Debt Obligation) and lost. He said he was getting 15 percent on them. But it only lasted a month. Then the whole thing collapsed.<\/p>\n
We are here today to commemorate the fifth anniversary of the Madoff debacle . . . Another Madoff investor I know — enough with the Madoff! — this Cleveland schoolteacher said she didn\u2019t think she was greedy when she was pulling in 10-12 percent a year from Madoff. She just thought she had made a good investment. I would have thought likewise. Madoff returned the schoolteacher’s original investment minus the paper gains. A small-timer, she got national TV attention for being a salt-of-the-earth Madoff victim.<\/p>\n
The stock<\/strong><\/span> market typically clocks 9 percent per year, but that\u2019s meaningless because the figure doesn\u2019t take into account human behavior, known in the biz as \u201cinvestors returns.\u201d Most people buy and sell at the wrong time.<\/p>\nMy father went all in on real estate 1965, and that\u2019s why I\u2019m in real estate now. He went in at the right time, luckily, and leveraged himself to the hilt. Our house was leveraged; he had second mortgages. He was gutsy, smart and fortunate.\u00a0 (He flopped at some other businesses.)<\/p>\n
I\u2019ve bought<\/strong><\/span> two buildings. The first building, I put down 25 percent and got a 10 \u00be-percent mortgage. That was the going rate in 1987.<\/p>\nThe second building, I put down 15 percent. I bought it from an old guy who was dying. I was dying too!\u00a0 The old guy lived another 21 years.\u00a0 The seller financed the deal; I didn\u2019t have to go to the bank for a mortgage. I paid him off 17 years later. It worked out.<\/p>\n
The first<\/strong><\/span> building — the one with the 10 \u00be-percent mortgage —\u00a0 I paid off as quickly as possible.\u00a0 Took 7 1\/2 years.<\/p>\nWin more than lose, hopefully.<\/p>\n
And don\u2019t chase 20 percent returns<\/em>!<\/p>\nHey, did my kids read this far?<\/p>\n","protected":false},"excerpt":{"rendered":"
The former Brith Emeth temple in Pepper Pike, Ohio, looks like a clam shell or flying saucer. My kids went to Hebrew school there. It was disorienting; I never knew which way to turn, right or left, to pick them up. The acoustics in the social hall were bad.\u00a0 Everything was boomy. Brith Emeth folded […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,15,13],"tags":[],"class_list":["post-17895","post","type-post","status-publish","format-standard","hentry","category-landlord-biz","category-shul-talk","category-toby-stratton"],"_links":{"self":[{"href":"https:\/\/www.yiddishecup.com\/blog\/wp-json\/wp\/v2\/posts\/17895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.yiddishecup.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.yiddishecup.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.yiddishecup.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.yiddishecup.com\/blog\/wp-json\/wp\/v2\/comments?post=17895"}],"version-history":[{"count":10,"href":"https:\/\/www.yiddishecup.com\/blog\/wp-json\/wp\/v2\/posts\/17895\/revisions"}],"predecessor-version":[{"id":18000,"href":"https:\/\/www.yiddishecup.com\/blog\/wp-json\/wp\/v2\/posts\/17895\/revisions\/18000"}],"wp:attachment":[{"href":"https:\/\/www.yiddishecup.com\/blog\/wp-json\/wp\/v2\/media?parent=17895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.yiddishecup.com\/blog\/wp-json\/wp\/v2\/categories?post=17895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.yiddishecup.com\/blog\/wp-json\/wp\/v2\/tags?post=17895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"\"](\"http:\/\/www.yiddishecup.com\/blog\/home\/yiddis6\/public_html\/blog\/wp-content\/uploads\/2013\/12\/brith-emeth-300x124.jpg\" "\\"OLYMPUS")
<\/p>\n![\"\"](\"http:\/\/www.yiddishecup.com\/blog\/home\/yiddis6\/public_html\/blog\/wp-content\/uploads\/2013\/12\/adding-machine1-263x300.jpg\" "\\"adding")
<\/a><\/p>\n