Quote:
Originally Posted by mitch cumstein
yeah, but wouldn't the interest that you pay on those mortgages (assuming he's paying interest  . he might have found a way out of that) at some point exceed the amount of taxes that you would pay?
it just seems ridiculous at that point to even worry about taxes. let's say he clears $30mil/year....in one year he could buy a $10mil house, a $5mil house and 2 $3mil houses and still have $9mil in his pocket, with $21mil sitting there appreciating.
FTR, i know nothing about finance and i don't know what shaq grosses a year with his NBA contract and endorsements, but i would assume its at least $50mil. |
Many wealth folks keep their real estate mortgaged to the hilt with interest only mortgages. Allows them to maximize their write offs and keep their wealth in the stock market, which is a much better long term investment than real estate.