« previous   housing   next »

Computer "genius" lost it all in real estate bets


By tovarichpeter   Follow   Thu, 29 Nov 2012, 12:32am PST   963 views   5 comments   Watch (0)   Share   Quote   Permalink   Like (1)   Dislike  

http://blog.sfgate.com/ontheblock/2012/11/29/mcafees-real-estate-history-a-saga-of-loss/

The McAfee Belize estate: Though the above pictures seem only to chronicle the “living the dream” success of a high-tech multi-millionaire, a study of John McAfee’s real estate holdings points to a steady downward spiral that has yet to hit rock bottom. Before the internet security guru became a suspect in the murder of his neighbor, he had other troubles, and perhaps the largest was money. When the country’s economy collapsed, so too did McAfee’s fortune. He lost 96% of his wealth in just two years time, dropping from a net worth of around $100 million to around $4 million....

Comments 1-5 of 5     Last »

TechGromit   befriend   ignore   Thu, 29 Nov 2012, 10:50am PST   Share   Quote   Like   Dislike     Comment 1

I'm not surprised. From the article, it looks like he had all his money tied up into 4 or 5 high end properties. One of them he paid 25 million for it. It's really no different than an real estate "investor" that had 4 or 5 houses during the height of the bubble, just a few extra zero's at the end of the prices.

Kevin   befriend   ignore   Thu, 29 Nov 2012, 4:28pm PST   Share   Quote   Like (2)   Dislike     Comment 2

I really hope they make a movie out of McAfee's life. They could call it "the 30 day trial".

Peter P   befriend   ignore   Fri, 30 Nov 2012, 10:21am PST   Share   Quote   Like   Dislike     Comment 3

He was not even a billionaire.

Ceffer   befriend   ignore   Fri, 30 Nov 2012, 10:35am PST   Share   Quote   Like (1)   Dislike     Comment 4

His financial advisors used a two prong, no-fail strategy: margin calls in stocks buffered by leveraged real estate.

Who'd of thought they would both collapse simultaneously? Apparently, this was a popular, "no risk" ploy for a lot of wealthy investors trying to become even richer. If the stocks failed, the real estate wouldn't. If the real estate went down, the stocks would make up for it etc. etc. If both leverages went up, bingo, casino night for the rich becoming ultra rich.

It is sad when two black swans collide. So much for financial experts.

Poor guy having to scrape by on a measly 4 million dollars. It's like all of those unfortunate movie stars down to their last ten million. Maybe welfare so these deserving types can slum it with a 30 million dollar lifestyle which they so righteously deserve.

Peter P   befriend   ignore   Fri, 30 Nov 2012, 3:48pm PST   Share   Quote   Like   Dislike     Comment 5

Ceffer says

Who'd of thought they would both collapse simultaneously?

LOL!

00 on the roulette. Awwww....

Email (Required, will not be visible)

Username (Just pick a name if you're new)

Watch comments by email

home   top   share   link sharer   users   register   best of   about   questions or suggestions? write p@patrick.net