If you have the income to support a $3k/mo housing cost you should be saving enough to afford a $100k downpayment in a few years. Also, as another poster pointed out, it probably qualifies for an FHA loan with much lower down payment.
I think the point being made is that you find out after and there's a lack of upfront information. Personally I'm a huge fan of the map, time stamps, and oddly enough, the rounding down
Regarding the profitability piece, they closed their mopub acquisition this week - something i believe will make or break the future of TWTR reopvenue... I believe the money is on that piece to perform or the company is dead in the water.
MoPub is the key for Twitter, I agree. It offers them a way to jump in as the leader in multi-touch/multi-device attribution, something that marketers will pay through the nose for (I know I would). I'm really interested to see what they do with it.
IIRC it's actually financing with a balloon payment (with no risk since they're not the lenders), with an option for buyback. That liability of buying back should be somewhere in the books, either accrued or entered in full.
Hmm I don't see any mention of equity here but only profit. If you're able to cover the cost of mortgage + HOA/property tax + expenses of running the place then the equity is the profit. Assuming the price of the place is the same in, say, 10 years. Then you've built up 10 years worth of equity buy having someone else pay your mortgage...
Of course if this place was bought cash, you could have done the same thing in reverse. Take that money and loan it to an individual to buy a house. The only difference is there's no extra profit to be made but also no added risk of not finding clients, repairs, etc. (unless someone wrecks the place and it becomes worthless)
I could be wrong but I got the impression he bought it outright and not with a mortgage. But even so, if his mortgage was a traditional 30/yr fixed loan, his monthly payment would ridiculously low. And then he is free to massively over-pay his mortgage payment each month... which is going to pay it off in about the same 4 years he mentions in his write-up.
So my guess is they want to do something similar to fancy.com but probably on a more massive scale? What do you spend $200M on in less than 10 months with max 150 employees?
I'm curious to know what happens after they halt trading. What's the outcome for those with outstanding shares? I would assume either the spread would get ridiculously wide or the sell orders never be fulfilled?
"The absolute cheapest benefit you can offer an employee is their title, and if they have a rational reason for wanting a better title, why on earth would you refuse to give up some title to get a good candidate on board?"
If your role doesn't match your title, you may be in big trouble when/if your company gets acquired. Also it might seem like the cheapest in one sense but as the company grows you'll find yourself in an awkward situation when a manager makes more than a VP you just hired. It's a sensitive subject that should be approached more carefully than you'd expect.
http://blog.docker.com/2014/12/initial-thoughts-on-the-rocke...