The REX Agreement enables qualifying home-owners and homebuyers to convert home equity into as much as $300,000 cash with absolutely no interest charges and no monthly payments. And the cash can be used to realize any of life’s possibilities. Right now.
The REX Agreement is not a loan, but a real estate investment agreement in the form of a purchase option. It gives homeowners a portion of their home’s equity in cash today—in exchange for the right of REX & Co. to share in a specified percentage of the future increase or decrease in the home’s value.
For the right to share in an agreed upon percentage of the future change in value of the home, REX & Co. pays the homeowner what is called an Option Exercise Price—equal to the current value of the home multiplied by the percentage of the future change in value granted to REX & Co. If the home increases in value, REX & Co. shares in the gain. If the home declines in value, REX & Co. shares in the loss. Simply stated, there is nothing like the REX Agreement in home finance.
----
I wish I had thought of this like ten years ago. Too bad it is only an option and not pure profit sharing. Then I'd jump at joining.
92 comments:
first fuckers!
And might I add, made another 8000 shorting CFC so far:-)
It's almost like PRINTING money! hee hee
Dwayne is in the news again.
http://money.cnn.com/2007/08/22/real_estate/foreclosure_rescue_scams/index.htm?postversion=2007082411
It would be interesting to read the fine print on that Rex agreement. There website indictates it is free cash to someone about to sell their home.
It's friday, this doesn't make sense.
current home value = 100k
percentage of the future change in value granted to REX & Co. = 10%
home owner gets 10k cash.
In order for REX to break even(not taking into account time value), the home would need to sell for 200k...
Found an example of how it works
Nolan contracted with Rex & Co. to receive $100,000 cash in exchange for a 10 percent stake of the home's future appreciation. When the Nolans sell their home, they'll pay Rex the $100,000 plus 10 percent of their home's appreciation above its current value of $2 million. If the home were to depreciate, Rex would share in that loss as well. "It was an interesting opportunity to take some cash out of the house and hedge against any decline in home value," said Bill Nolan, who plans to invest the money in his business. "It was a way to hedge against the [real estate] market being flat or not performing as well as the equity market; to pull money and put it into something else I felt had a reasonable chance of outperforming the real estate market."
a) You have to pay back the cash advance when you sell.
b) They loaned 5% for 10% of the appreciation
In other news:
OK, the click link didn't work. Try this instead:
http://money.cnn.com/2007/08/24/magazines/fortune/eavis_citigroup.fortune/index.htm?cnn=yes
I wonder how the current value is determined? That would seem to be a big consideration. If Rex is very conservative in how they determine the current value then it seems like a good deal for them.
Ok people, final tally in one month of shorting CFC, heh, cashed out, watched them rise, and am shorting again:-)
48,000 dollars. Oh CFC, you guys are the best..
As for Rex or those mortgage scammers, when are people going to learn that nobody does anything for altruistic reasons particularly when it involves money, all this win win bullshit is just that, bullshit. It's usually win for the scammer, screw you if it doesn't work out for the scammeee.
Saaay, I just had a great idea...anybody who has cash at this point should be going to all these real estate job fairs...I mean think of it, all these hot babes used to living the good life suddenly looking for jobs and men with cash. It's win win!!!!
In fact, I'm thinking of flying to Sacramento to see if Galina is doing anything...snicker..
It's a straddle, with the lender determining PV.
So, if their appraisal says your equity (market price - outstanding debt) is $1.00, and you take the deal on a million dollar house, that is a pretty sweet deal for them.
Be careful.
No Casey news?
Legion,
Some of us here saw that the "cash infusion" B of A threw CFC would have a premarket effect only. How many suckers got pulled into that bull trap? It dribbled all its premarket gains away and well tanked again yesterday. Another week and Wall St. will be back in the red wondering why CFC is coming apart at the seams.
See if I were actually as aggressive as my gut tells me I should be, I'd be a lot richer. Well done, Legion.
old: Casey has supposedly returned to blogging:
http://iamfacingforeclosurethereturn.blogspot.com/
It is still up to debate whether or not this page is by Casey or an impostor. I guess we'll find out this Thursday night during his 'next' talkcast whether or not if this is the real deal.
WaMu desperately wants your money. Do you want to risk it, punk?
WaMu is the next to crap out, right after Countryslide, imo.
Did some number crunching and this seems like a good deal for Rex.
By their calculator a $500,000 home with 50% share on appreciation gets you $71,429 today.
If we assume a 3% appreciation rate then in 5 years the house is sold for $579,637. Rex gets $71,429 + ($79,637/2) = $111,248
Pretty nice ROI of 11.15%
Using the same appreciation rate
after 10 years: 12.04% ROI
after 15 years: 13.02% ROI
after 20 years: 14.11% ROI
Then there's inflation and/or opportunity costs.
In my case lets say I borrow $200k against a lowball $900k appraisal and sell in 2 years for $800k. I still owe them $150k but I'll have put the $200k in ulta safe WaMu and Countrywide FSB high yield CDs. So after 2 years I'll have $220k so I walk with $70k.
Using a decent appraisal of $1.1m and $100k borrowed and selling in 2 years for $900k I'd have $110k in the bank and no repayment? House "puts."
Sorry Rob, you'll only get $128,572 @ 50% sharing on that $900,000 :)
Now if the value is really only going to be $800,000 in two years and you are sure of it (and sure you'll want to sell) then it might be a good deal. Of course we don't know what fees they charge so that would effect the math.
I suspect that they factor in the declining prices in the PV number so that $900,000 might be generous.
I also noticed that they have special rules for getting out before 5 years are up (without selling).
Is there any reasonable reason to save a decade worth of Wired magazines?
And I have the extremely rare Volume 1 Number 1 of MacWeek magazine. In prisine condition. Offers?
prisine + pristine, actually.
And "+" actually equals "=". Lysdexia strikes again.
Don't forget a sharp!
@Akubi
I do Pascal. Programmers should never be allowed anywhere near sharp objects.
If I were to go about getting a tattoo I'd get This Game Sucks! like this hot BM girl.
@Trent
I don't think it is he. Has to be an impostor.
Apparently the caseyhaterz.com kicked everyone with an account but not a post off their site. They alerted users to this by sending them a private message on the site, but kicked off the site I never got the message. Would have made a post to continue lurking and reading the drama. But the last time I was there it was all speculation, and no news. So, thought I would come here (tracking Casey Serin beyond the control of Casey Serin) to see if there was any news. Alas, and alak. Thanks for the link though.
Anastasia is hot. I'd do her any day.
@ old,
Well, I guess I am kicked out of CH.c then. First time I have ever been removed from anything in my life. ;;;yawn;;;
Just a lurker there, not a poster, but lots of action out here.
Next.
FMW,
What precipitated that?
@FlyingMonkeyWarrior
I read that on the twelveyearsofbeingannoyedbychloesevegny, and have not been able to log in since. You could give it a try to see if it is true.
The whole damned thing though is like reading a book with the last chapter missing.
@ TK and Old,
I guess because I did not post or log on enough.
FMW
The whole damned thing though is like reading a book with the last chapter missing.
******************************
LOL at old.
That would be the way of the world I reckon.
"After all, tomorrow is another day."
Scarlet O'Hara in Gone With the Wind.
d'oh
"With her long hair and shapely figure, Jackson was one of his most popular dancers, earning well over $1,500 a week in tips, said Schwapp, who owns the Legend Nightclub. He said Jackson danced under the name "Night Rider" from 1997 to 2003. One of her most memorable stunts involved riding in on a white stallion, a la Lady Godiva.
"She was very popular, very creative," he said. "She stood out."
"It wasn't just the patrons who noticed Jackson's act. Kurt Fordham, a popular disc jockey in Prince George's clubs, liked her, too, and the two started dating.
"Jackson eventually stopped dancing to focus on her career as a loan officer, moving from one mortgage firm to another. In September 2004, she teamed with McCall, 46, to open Metropolitan. They advertised on gospel and R&B radio stations and other African American media outlets, promising to help homeowners with cash-flow and credit problems."
Prince George's Fairy Tale Unravels For Woman at Center of Fraud Probe
@FMW
Don't feel bad. I never even signed up with that group...something about having to pass muster to get into an "in" crowd, it just started to remind me of high school...no thanks.
Anyways, as for this Jackson ex stripper moron, I mean seriously, what is it with these people? Why do they feel so entitled? How much money is enough? Spneding 800K on a wedding when 1 year prior she was a stripper making 1500 a month? giving away cars, homes? The sad thing is, how many lives has she ruined just for her own selfish reasons? They should make her strip until she has paid all her victims off, yeah it'll be in quarters but so what?
WTF...
Did CH.c send you some sort of email explaining that you were "out"?
Speaking of 12yearsofbeingannoyedbychloesevigny, where IS aspeth?
Why can I imagine lots of people on this board telling these stories to their little ones ?
shamelessly stolen picture
Itsallgood!
@ Lost Cause:
Except for the tragedy of people losing their homes to this idiot. That article is full of hot ghetto mess fun.
I saw the wedding photo and thought WTF?
Then read this "I know Joy's not like that. She will be vindicated," said Bannister, a Baltimore-based clothing designer who created Jackson's wedding gown and, earlier, her exotic dancing costumes. "Any money she got, she earned."
Well, and then there was the quote about "making it rain" during the reception. Must have felt like old times for the former stripper.
Good God!
Check out my sweet porn.
The story of Joy reminded me of Duane, with more creativity.
@TK
Apparently the caseyhaterz.com kicked everyone with an account but not a post off their site. They alerted users to this by sending them a private message on the site, but kicked off the site I never got the message.
@Curious
I was thinking the exact same thing while reading the story, let's see
1. Any money she got she earned
(Hey 60 million, that's a lot of lap dances and blow jobs, even by her standards)
2. Bring your dollars, fives, tens fifties and hundreds.
Yep same old tricks, excepet this time they don't have to shove the dough in her thong. At least the fives and tens weren't allowed to.
3. Tittilates the client promising the world while not actually giving anything of value...check.
Yep, she should go back to being a stripper...same thing but at least it's illegal and she doesn't screw people out of their homes.
Christ on a stick..the husband looks like a real winner too. Who the hell picks up their future wife at a strip joint? A loser that's who.
CH.C unfortunately turned very quickly into an 'in crowd' sort of thing. The Dude banned people for some pretty trivial reasons and they were (myself included) fairly well known haterz. It was a real shame. If KC comes back I guess it might take off again tho.
Yeah that article pretty much made me want to hurl. All that business about conspicuous consumption, DP and Cristal flowing, the extravagant gifts, the VERSACE marble floors. Bleah.
That's the funny thing about people who suddenly find find themselves with a ton of money and they never had any before - they're never hard pressed to find stupid and creative ways to waste it. If I had enough money for 6 cars, why would I buy them so I could wipe them down and move them every day?
Anyone here set up a table at their wedding and lay out the money and start counting? Didn't think so.
Yeah they EARNED it...
Had an buddy who married an exotic dancer. Nice girl, but she died of cancer right after the marriage.
So he goes marries another one. This one was a no good coke head. Her parents warned him not to marry her as they had not been able to straighten her out using lots of $$ and the best hospitals. They had tossed her out of the house.
Anyways, he comes home one day to find she had stolen every dime he had in the bank for drugs. Thank God the family land and businesses had not been turned over to him yet.
Then she tries to get a hit on him for the insurance money. Luckily her father was made so, he put the word out that anyone who whacked the guy off would never spend a dime of the fee. Then her father told him he was an idiot for marrying their hopeless coke head daughter and to divorce her which he did.
A lot of these dancers can be be real b*tches who don't think their stuff doesn't stink.
The area where this Jackson was working is tobacco country outside of Washington. A lot of poor ill educated people to be taken advantage of.
May have marble floors in her new crib, or it may be just reinforced concrete...
H
Reporting from the IE;
"Today the view from their porch is a street pocked with boarded windows and dead lawns -- homes now repossessed after buyers failed to make mounting mortgage payments."
"The families believe the investors were not just people flipping houses for a quick profit, but also a group of scammers taking advantage of lax lending rules that permitted 100 percent financing with no money down and minimal documentation.
For the Gordons and Taylors, these are the people who ruined the neighborhood by using their homes like revolving night clubs, cramming cars into the cul de sacs and threatening neighbors who complained."
http://www.reuters.com/article/inDepthNews/idUSN2040778220070827?feedType=RSS&feedName=inDepthNews&rpc=22&sp=true
Rather funny article.
...Thousands of other consumers joined online petitions. One of these, on a Web site that also plays host to campaigns to draft Al Gore to run for president, close fur factories in China, and shut down the Federal Reserve, implored, “Together we can make the world of chocolate a better place!”
During the Glastonbury music festival in June, a group of Wispa fans stormed the stage while Iggy Pop was performing and displayed a banner reading, “Bring Back Wispa.”...
Circa 2004
Mortgage Broker "Now you do understand FB that you are paying only for interest, and that the payment will go up after two years"
FB: Yeah yeah, it won't matter since the house will appreciate a ton by then and I can refinance.
MB: You do realize that you are taking out a pretty massive loan with a stated income of 50K right?
FB: Look asswipe do you want me to walk and go see another MB? There are tons out there begging for my business.
MB: I just want you to realize that you will have about 600 dollars a month left over for personal expenses, and that may reach zero after two years.
FB: Look I'm a genius ok, I made 100K on my last house and I am now a real estate investor. I've already got appointments to look at houses in Nevada, Florida, and California. If you play your cards right, I may just give you some return business.
MB: Okay as long as you realize that you could be squeezed if the housing market tanks.
FB: Man you sound like a bitter renter! Housing will always go up, they aren't making more land you know. That's what all my inlaws said about my last flip and who's laughing now! I made more on one flip then they make in two years! I know there are risks, but I'm different you see, I went to every seminar and bought every course on real estate that is out there! I'm going to be financially independent in 5 years and retire at age 40!
Circa 2007
FB: THEY LIED TO ME! I DIDN'T KNOW WHAT I WAS SIGNING AND THEY WERE....PREDATORY!
Co-worker looks to be buying a countrywide house. House was appraised at $650K. CFC had it listed at $640K. He offered $510. They did not quibble about price countered with a closing on the 30th. They will handle all the loan processing at no fee.
I recommended he do some more negotiating
@Serinitis
Now see, what your friend needs to do see, is take his profit up front. Tell him to get a loan for 640 K, then he gets 130 K cash back for bullshit repairs what not...in two months, he can sell it for 640K!!!
Man, easy money!
@legion
Take the $130K cashback and buy CFC put options. Don't make any payments and giggle all the way to the Bahamas.
@serinitis
Well I did sell 5000 shares of CFC at 21 short.
I just purchased some Sept $15 puts. I am guessing that the Feds will not lower rates in Sept and CFC will get nailed by the 21st.
Countrywide Article
@serinitis
Perfect. Once the class action lawsuits start building momentum, that and the hubris and low regard for his own company (mozilla the gorilla didn't even buy any stock in CFC?!?!? Just sold it for 406 million) this has the makings of a perfect bankruptcy. As the faith in this company goes the way of Enron, people are going to be fleeing in droves!
and someone should seriously tell him that his rub on tan is looking waaaay too orange. Shee what a schmuck.
You-all are welcome to short CFC and/or buy puts all you want, but no crying on these forums or any others if/when the short squeeze comes and CFC hangs in there for another three months.
Take a look at NFI--yes, they're still around, and it's fairly obvious that people who shorted them at the wrong time are hurting badly. Anybody who shorted NFI in mid-March had to endure five months of pain before realizing a gain. And anybody who shorted them three weeks ago may see a lot more pain yet. CFC could very well go the same direction--down, but not quickly enough for someone who's heavily leveraged.
and someone should seriously tell him that his rub on tan is looking waaaay too orange. Shee what a schmuck.
@PV
My Puts were clearly very high risk gambling. I won't be bitching if CFC doesn't collapse. (I will just short it again). I will however bitch if Mozilla keeps his 400 million.
Man, anybody see the you tube video of Miss South Carolina Teen USA answering a geographic question?
Keeerist what a bag of rocks....she did use Iraq and such as and then went blank...if you look real close, you could almost see the point where her last two brain cells fizzle and die...
an yeah if anyone's wondering...she's bangable...though any kids born to her will definitely be needing special helmets..no matter how smart the sperm donor is.
@Legion
FB: THEY LIED TO ME! I DIDN'T KNOW WHAT I WAS SIGNING AND THEY WERE....PREDATORY!
While not all lending was predatory, some was. Most of the predatory behavior was through mortgage brokers. This is from experience w/ a friend of mine. Year 2003, income north of 70k/year, FICO above 780, refi because of a divorce (bought the other party out of the house)..
Loan was an I/O with a 11% cap.. in 2003. Max index was 2%/year(1% every 6 months). This was through a mortgage broker. This person recently refi'd. I told them to do the shopping themselves this time(I also told them when I heard about their 2003 mortgage provisions, that they got screwed by their mortgage broker).. They refi'd to a 5.8% Fixed, standard loan.. which is a lower rate than their Adjustable would move to this year. Their prev mortgage broker could not even get close. It would have been nice to have gotten the Fixed in 2003!!!
The end result is that there was predatory lending occurring that prevented some people from locking in better interest rates early on. Now they are screwed. Unfortunately there is too much willingness amongst people to believe that the sales/broker is doing it for your benefit.
"The good hands people"?? not for your benefit.. those hands are out there for more money. Moral of story; Due diligence is important in everything!! in particular, with major purchases/financing.
@Legion
and someone should seriously tell him that his rub on tan is looking waaaay too orange.
Are you sure he is not a cross between an oompa-loompa and willie wonka?
here she is!
Whilst shopping for a cell phone, the (cute) sales assistant asked me where my accent came from. I said "Deep South".
After Michigan, Texas, & Georgia tries, I told her to "try South of the Equator". Blank look. "Am I supposed to know what that is?"
And she was enrolled at CSU!
I got stopped out of my CFC today when it dipped below $20, realizing a $3,500 profit in less than 2 weeks.
@wagga
Good link.. just how many times does she say... "uhh.."
Might be worth transcribing.. uhh.. if found .. uhh.. her kind of uh, hard to follow...
@BJ
Granted, those scumbags did overcharge people, but let's face it, everybody said "Ah what the hell, the appreciation in my house over the next two years is gonna offset that extra percentage point"
Franly, I think all those insurance people and brokers are scumbags..they couldn't give a shit whether you are covered adequately or not. How do I know? Cuz I've been to my house insurance salesperson twice trying to get a higher coverage for my house..it is off by 100K and I've already asked her to fix it once...total dumbass..we are going elsewhere. In the meantime if anything ahd ahppened to my house in the last 6 months I woulda been out 100K.
@Wagga, that girl should just skip college and just go straight to porn. I mean seriously, if she lists miss teen usa sc on her college application, one google and she is toast.
@FCB
Nice...
Transcription
Recent polls have shown that a fifth of Americans can't locate the US on a world map. Why do you think this is?
MSC (Dadgummit I thought it was gonna be about world peace!)
I personally believe..that..US americans are unable to do so..because uh...salma (supposed to be some a but her brain was in high gear here) people out there in our nation don't have maps and..uh..I believe that our education such as in south Africa and uh...The Iraq..everywhere (Mommy help me!) like such as..(WTF did I just say?!?!?), I believe that they should..our education over here (I don't even understand where I'm going with this) in the US should help the US I mean should help South Africa, it should help The Iraq and the Asian countries (Hey might as well throw Asia in there, it's in the middle east right? With The Iraq and South Africa?) so we will be able to build up our future.
MC
Thank you very much..South Carolina..you fucking moron.
Oh and they say she has a GPA of 3.6
I'm sure that's gonna be investigated up the wazoo over the coming months...
Look guys, she only got A's from her male teachers!!! And half of em don't even have her as a student!
Presidential material. Until the mouth speaks. Takes me right back to 1999.
So where's the Dawg?, & Akubi? & especially Aspeth?
It is however, cool that this blog just rolls along like old man river. In the absence of kc hysteria the tone is intelligent, colorful, respectful & entertaining.
Clearly Rob's fault.
And a joey is a baby marsupial.
And don't forget, Red moon adds color to upcoming lunar eclipse. Thats PDT time.
Red Moon?
Isn't that one of the signs of Armageddon?
Heavenly & free, too,
Holy shite, I don't think I've ever seen a dumber moment in somebody's life as that freakin' pageant video. Now this girl is claiming she's even IN pageants because she wanted to improve her communication skills and that she really has a 3.5 GPA.
The EYE-Rack and South Africa should not follow our example. It will not make the world a better place.
No wonder the world can't stand us. The other night I was being driven home by an extremely bright and personable cab driver who was a MEDICAL doctor in Ghana. Now he drives cabs in New York. Ahh the land of opportunity...
OK OK...
WNBC Channel 4, just now:
Anchorwoman: Coming up on the Today show, a Miss Teen South Carolina will try to explain her not-so-stellar answer to a question about Americans and their knowledge of geography (grimaces)
(roll clip)
.
.
.
(Clip ends)
Anchorwoman: (under breath with exasperated tone) Oh my God...
Weather guy: Ouch.
Co-anchor: (stifling laughter)
Anchorwoman: I feel so BAD (attempting poorly to cover inappropriate editorializing) listening to that. She's 17 years old...I think that anyone put on the spot (particularly this idiot) can bomb anything!
co-anchor: (Smirking)It can happen to anyone...
Weather guy (now busting a gut): Oh that has never happened to anybody.
Then the anchor goes on to tell a story of how she asked the Bronx borough president a complete non-question one day and how he was nice enough to answer it.
I hope she blows it again on the Today show.
We need a new post Rob.
Even a placeholder for various and sundry topic meandering.
Anybody banged Galina yet?
*Beats head on brick wall for trolling*
Has Dawg been kidnapped?
Has the FBI subpoenaed Dawg to testify against Snowflake?
Or does Dawg have a life and is taking a vacation?
There's nobody on the streets here. Everybody is on vacation it seems. Everybody except me it would seem.
"Recent polls have shown that a fifth of Americans can't locate the US on a world map. Why do you think this is?"
Because a fifth of Americans are children.
Which would also go a long way toward explaining why Europeans consistently score higher than Americans on surveys related to general knowledge--hey, if a majority of your population is over the age of 60, of course your populace is going to sound knowledgeable.
I think all this is a result of eating too much Sushi. With or without avocado....
Can't say I didn't tell you so!
What about sushi prepared at 410 Avocado. Looks like somebody got a talking to. Expect an update soon. Ohm and new post. I'm back with a pile of stuff to talk about.
. . . Oh sure, someone is going to point out that the survey results were likely from adults. But response bias, demographic slant in the survey, etc. are all valid factors to be considered. Oh yeah--and how did they know whether or not people knew where the U.S. was, unless they had a map to point it out on? Not a phone survey, it would seem--welcome to even more response bias and potentially even more of a demographic slant.
A more accurate statement might be "one-fifth of random people who were stopped in a survey at the local Oak Woods Mall were not able to locate the United States on a map . . . a further fifth were able to locate the United States, but were wondering where the food court was located."
And in all fairness, I wouldn't expect a beauty contest candidate--or any average American, for that matter--to know all of that. Statistics and statistical methods should be required at least at the college level, but we're not there yet.
PV,
So right. Transitistas and New Urbanists are infamous for using dishonest consumer surveys. A NU charette will show an aerial Boombeg picture and ask "do you want this?" and then show a family on a porch with white picket fence "or this?" Result, 3/4ths respond to the idealized version which is then duly reported as supporting high density transit oriented development.
While not talking about finding the US on the world map, this interesting study found 50% of 18-24 year olds incapable of finding NY on a US map.
Report
The education system is obviously f'd up but IMHO it also shows the reigning indifference of Americans to the world around them.
Could be they ran the survey on the streets of LA, Miami, or Phoenix. If it were asked in ENGLISH, there is a good chance they did not understand the question in the 1st place.
Having said that:
Ever watch those pinheads Jay Leno interviews on the street with simple questions like who is your congressperson etc.
I swear half those dolts need a hat with a flashing light on top and gps enabled sensor so the driver of the short bus can locate them in a moment's notice.
Or last weeks "Are you smarter than a 5th grader". 20 something IT bozo choked on the 1st question.
I turned to my 11 year old (who knew the answer) and said "I cannot believe we allow that dope to vote".
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