Saturday, September 01, 2007

why and how people lose money ~ $15,000

okay maybe it's not stupidity. Maybe it's just people don't ask around for help from friends or what not. I don't understand it but here is the story.

My parents have been in real estate for as long as I can remember. Everytime I have a friend that is moving to a house/apartment I ask them if they would like me to ask my parents to see if they can help them out financially. Normally, agent fees are 3% and if you buy a 100k home it's 3k. So I ask my parents if they would just take just enough to cover all their fees and taxes and give the rest to my friends. I try to help my friends as much as possible. Now my parents still need to make a living too so most of the time they would just say they would give my friends 1% of the sale back to them just cause I asked them. 1% of 100k = $1,000 and all just because they are my friend.

Well, I have friends and I have friends that I go waaaaaay back. I have in 1 rare instance asked my parents to give a friend as much as they could and I do believe it was way more than 1%. But my parents would be more than glad to help out my close close friends.

I just found out a good friend i've known since middle school went in with some friends to buy a $750,000 in houston 3 months ago. brand new house with 6,000 sq ft with a monthly mortage of over $4,000 a month. HAHAHHAHAHAH

I'm like dang you must be coming up and still being able to buy new escalades. Then I asked if they at least got a agent to kick you back some fees and they said NO. Then I asked "do you even remember my parents" and then the light bulb clicked. "I'm 100% positive my parents would have given them a huge chunk of their commision since we go so far back".

Math time
$750,000 * 3% = $22,500.
I think my parents would need ~ 1% to cover all fees and taxs.

So my friend could have pocketed $750,000 * 2% = $15,000 tax free?

my oh my why people don't take care of their money or better yet understand the business of making and retaining your money cracks me up. IT'S FREE MONEY.

If your friends can't help you save money with coupons, deals, sales who would? Why would a stranger help you save money?

Rant off

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