Originally Posted by ninjaroach
Finally, someone who knows what he's talking about.
I don't think that's the issue, he qualified for the loans to buy the homes. Assuming so his mortgages are likely the same, and if they are ARM's, they've actually decreased. Just because home values have tanked doesn't mean the payments he previously qualified for have changed.
Now if his point was his net worth has taken a huge dive, OK, but that's not really what I got out of his comments. He kept referring to cost of living in Cali, and reduced income from sponsorship and fees. That sounds like a cash flow issue, not a net worth issue.
Maybe he overextended himself by buying too much real estate. If that's the case, that's poor money management.